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JAPAN POST INSURANCE Co., Ltd. (JP:7181)
:7181
Japanese Market

JAPAN POST INSURANCE Co., Ltd. (7181) AI Stock Analysis

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JAPAN POST INSURANCE Co., Ltd.

(7181)

Rating:59Neutral
Price Target:
JAPAN POST INSURANCE Co., Ltd. has a solid financial foundation with strong operational efficiency and a robust balance sheet. However, the declining revenue trend and cash flow challenges pose risks to growth and liquidity. The technical analysis indicates potential near-term resistance, while the low P/E ratio and attractive dividend yield suggest the stock might be undervalued, offering some potential for long-term investors.

JAPAN POST INSURANCE Co., Ltd. (7181) vs. iShares MSCI Japan ETF (EWJ)

JAPAN POST INSURANCE Co., Ltd. Business Overview & Revenue Model

Company DescriptionJapan Post Insurance Co., Ltd. provides life insurance products and services in Japan. It also offers agency or administrative services for other insurance companies, including foreign insurance companies; and financial services companies, as well as loan guarantees. In addition, the company is involved in trading government bonds and government-guaranteed bonds; accepting subscriptions for government bonds, corporate bonds, and other bonds; and the commissioned management and other businesses, as well as the other life insurance businesses. Further, it is involved in the management of postal life insurance policies. The company offers products through agencies and direct managed sales offices to individual and corporate customers. The company was founded in 2006 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyJAPAN POST INSURANCE Co., Ltd. generates revenue primarily through the sale of insurance products. The company earns premiums from policyholders in exchange for providing life, medical, cancer, and other insurance coverages. These premiums constitute the primary source of income. Additionally, the company invests a significant portion of the premiums collected in various financial instruments, such as bonds, stocks, and other assets, to generate investment income. The company's extensive distribution network, supported by Japan Post's infrastructure, and strategic partnerships with other financial institutions further enhance its ability to secure new business, retain customers, and expand its market reach. The combination of premium income and investment returns forms the core of JAPAN POST INSURANCE’s revenue model.

JAPAN POST INSURANCE Co., Ltd. Financial Statement Overview

Summary
JAPAN POST INSURANCE Co., Ltd. demonstrates strong operational efficiency and financial stability, with high margins and low leverage. However, the company faces challenges with declining revenue and cash flow constraints, which could impact future growth and liquidity. The balance sheet remains a strength, providing a solid foundation for potential improvements in profitability and cash generation.
Income Statement
65
Positive
The income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin and EBIT margin are high, indicating strong operational efficiency. However, there is a declining revenue trend, with a significant drop compared to previous years, impacting overall growth prospects. The net profit margin remains modest, reflecting effective cost management but also indicating room for improvement in profitability.
Balance Sheet
78
Positive
The balance sheet is robust, with a strong equity position and low leverage, as indicated by the low debt-to-equity ratio. The equity ratio is stable, showing a healthy balance between assets and equity. Despite a decrease in total assets and equity over the years, the company's financial stability remains solid, minimizing potential risks.
Cash Flow
40
Negative
The cash flow statement reveals significant challenges, with consistently negative operating and free cash flows over the years, indicating difficulties in generating cash from operations. The lack of positive cash flow metrics poses a risk to liquidity and operational sustainability, despite the availability of cash reserves.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue3.86T3.58T2.72T3.10T3.48T3.76T
Gross Profit4.45T0.002.72T3.10T3.48T3.76T
EBITDA116.54B130.58B162.46B181.96B277.50B295.24B
Net Income106.33B123.47B87.06B97.61B158.06B166.10B
Balance Sheet
Total Assets60.47T59.56T60.86T62.69T67.17T70.17T
Cash, Cash Equivalents and Short-Term Investments1.45T0.001.16T1.44T1.27T1.34T
Total Debt500.00B5.02T400.00B300.00B300.00B300.00B
Total Liabilities56.98T56.31T57.46T60.31T64.75T67.33T
Stockholders Equity3.49T3.24T3.40T2.38T2.42T2.84T
Cash Flow
Free Cash Flow0.00-1.64T-3.15T-3.01T-2.79T-2.84T
Operating Cash Flow0.00-1.63T-3.06T-2.98T-2.76T-2.81T
Investing Cash Flow0.002.46T2.72T3.22T3.11T2.55T
Financing Cash Flow0.0060.14B62.17B-72.94B-420.27B176.74B

JAPAN POST INSURANCE Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3275.00
Price Trends
50DMA
3035.03
Positive
100DMA
2973.49
Positive
200DMA
2862.46
Positive
Market Momentum
MACD
47.11
Positive
RSI
55.27
Neutral
STOCH
53.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7181, the sentiment is Positive. The current price of 3275 is above the 20-day moving average (MA) of 3265.85, above the 50-day MA of 3035.03, and above the 200-day MA of 2862.46, indicating a neutral trend. The MACD of 47.11 indicates Positive momentum. The RSI at 55.27 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7181.

JAPAN POST INSURANCE Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
C$14.44B5.5220.17%6.11%26.88%-38.18%
59
Neutral
¥1.16T10.03
3.21%23.94%22.80%
$27.20B9.6311.52%3.26%
$11.18B14.069.22%0.02%
71
Outperform
¥686.90B12.95
2.41%2.02%92.64%
70
Outperform
¥736.44B26.19
0.41%
54
Neutral
¥181.68B30.59
24.65%102.08%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7181
JAPAN POST INSURANCE Co., Ltd.
3,235.00
199.38
6.57%
DCNSF
Dai-ichi Life Holdings
7.56
0.86
12.84%
TDHOF
T&D Holdings
21.93
4.00
22.31%
JP:7157
Lifenet Insurance Company
2,263.00
473.00
26.42%
JP:7163
SBI Sumishin Net Bank Ltd
4,890.00
1,910.56
64.12%
JP:7167
Mebuki Financial Group, Inc.
756.20
141.72
23.06%

JAPAN POST INSURANCE Co., Ltd. Corporate Events

Japan Post Insurance Reports Unrealized Losses on Securities
Apr 25, 2025

Japan Post Insurance Co., Ltd. reported unrealized losses on its securities amounting to 2,181,194 million yen as of March 31, 2025. Despite these losses, the company has not revised its financial results or dividend forecast for the fiscal year ending March 31, 2025, indicating stability in its financial outlook.

Japan Post Insurance Completes Treasury Stock Acquisition
Apr 22, 2025

Japan Post Insurance Co., Ltd. has completed the acquisition of 717,200 shares of its treasury stock for approximately 1.96 billion yen, as part of a broader plan authorized by its Board of Directors. This acquisition is part of a strategic move to manage its capital structure, potentially enhancing shareholder value and reflecting confidence in the company’s future prospects.

Japan Post Insurance Completes Significant Treasury Stock Acquisition
Apr 7, 2025

Japan Post Insurance Co., Ltd. has completed the acquisition of 10,652,400 shares of its treasury stock, amounting to 33,043,744,800 yen, as part of its strategic plan to manage its capital structure. This move, executed through the ToSTNeT-3 system, reflects the company’s ongoing efforts to optimize shareholder value and enhance its financial flexibility.

Japan Post Insurance Initiates Treasury Stock Acquisition
Mar 31, 2025

Japan Post Insurance Co., Ltd. has announced the commencement of acquiring treasury stock through the auction market, starting April 1, 2025. This move aims to manage the company’s share structure, ensuring that Japan Post Holdings Co., Ltd.’s voting rights remain at 50% or less, potentially impacting the company’s financial strategy and shareholder value.

Japan Post Insurance Completes Treasury Stock Acquisition
Mar 31, 2025

Japan Post Insurance Co., Ltd. has completed the acquisition of 10,652,400 shares of its treasury stock through the Tokyo Stock Exchange’s Off-auction Own Share Repurchase Trading system, amounting to approximately 33 billion yen. The company plans to continue acquiring shares through the auction market to maintain the voting rights ratio of Japan Post Holdings Co., Ltd. at 50% or less, which could impact its market positioning and shareholder value.

Japan Post Insurance Announces Treasury Stock Acquisition Plan
Mar 28, 2025

JAPAN POST INSURANCE Co., Ltd. has announced its plan to acquire up to 11,283,000 of its own shares through the Tokyo Stock Exchange’s Off-auction Own Share Repurchase Trading system. This move is part of a broader strategy to manage its capital structure, with the total acquisition amount potentially reaching up to 34,999,866,000 yen. The acquisition aims to maintain the voting rights of JAPAN POST HOLDINGS Co., Ltd. at 50% or less, ensuring a balanced ownership structure.

Japan Post Insurance Resolves Treasury Stock Acquisition Method
Mar 28, 2025

Japan Post Insurance Co., Ltd. has resolved the method for acquiring its treasury stock, aiming to improve capital efficiency and enhance shareholder returns. This move aligns with its medium-term management plan and shareholder return policies. The acquisition is also part of a broader strategy to maintain the voting rights ratio of its parent company, Japan Post Holdings Co., Ltd., at 50% or less, ensuring compliance with the Postal Service Privatization Act. The decision may lead to significant transactions with the controlling shareholder, impacting the company’s market positioning and stakeholder interests.

Japan Post Insurance Reports Zero Treasury Stock Acquisition
Mar 5, 2025

Japan Post Insurance announced that no shares were acquired during the treasury stock acquisition period from February 1 to February 28, 2025, despite a prior resolution allowing for the purchase of up to 30 million shares. This lack of acquisition may impact the company’s planned financial strategies and could influence shareholder expectations and market perceptions.

Japan Post Insurance Explores New Reinsurance Investment
Feb 28, 2025

Japan Post Insurance has signed a memorandum of understanding with KKR and Global Atlantic Financial Group to explore a new investment in a reinsurance vehicle. This strategic move is part of Japan Post Insurance’s efforts to enhance growth and diversify its business, with plans to invest between $1 billion and $2 billion, potentially owning more than 50% of the vehicle. The final decision is expected in three months, with capital deployment anticipated as early as 2026, pending necessary approvals.

Japan Post Insurance Reports Strong Financial Growth Amid New Policy Expansion
Feb 14, 2025

Japan Post Insurance Co., Ltd. reported significant financial growth in the nine months ending December 31, 2024, driven by an increase in investment income and a substantial rise in new policy sales. Despite a decline in the total number of policies in force, the company’s embedded value and value of new business saw notable gains, reflecting a positive market environment and strategic efforts to boost new insurance categories.

Japan Post Insurance Reports Mixed Financial Results for Nine Months Ending December 2024
Feb 14, 2025

Japan Post Insurance Co., Ltd. reported its financial results for the nine months ending December 31, 2024. The company experienced a slight decrease in the number of individual insurance policies in force, while the policy amount also saw a marginal decline. New policy sales increased significantly, indicating potential growth in market reach. These results highlight a mixed performance, with an increase in new policies possibly impacting future business growth strategy.

Japan Post Insurance Reports Profit Growth Amid Income Decline
Feb 14, 2025

Japan Post Insurance Co., Ltd. reported a decline in ordinary income for the nine months ended December 31, 2024, compared to the previous year, but saw significant growth in ordinary profit and net income attributable to the company, highlighting an improvement in profitability. The company has also announced stable dividend forecasts for the upcoming fiscal year, reflecting a commitment to return value to shareholders.

Japan Post Insurance Reports Mixed Financial Results for Nine Months Ending December 2024
Feb 14, 2025

Japan Post Insurance reported its consolidated financial results for the nine months ending December 31, 2024, showing a decline in ordinary income by 5% compared to the previous year. However, the company experienced a significant increase in ordinary profit, rising 77.6%, and net income attributable to the company increased by 29.6%. Despite a decrease in total assets, the equity ratio saw a slight improvement. The company maintained its dividend forecast for the fiscal year ending March 31, 2025, reflecting a stable outlook for its stakeholders.

Japan Post Insurance Updates on Treasury Stock Acquisition
Feb 5, 2025

Japan Post Insurance announced the status of its treasury stock acquisition, initially planned to acquire up to 30 million shares with a maximum value of 35 billion yen. However, as of January 31, 2025, no shares have been acquired, indicating a potential reevaluation of their stock acquisition strategy.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 01, 2025