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

• Market Cap: ¥1.44T
• Dividend Yield: 2.75%
• Average Volume (3M): 708.54K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.74
• Revenue Growth: -21.38%
• EPS Growth: 58.05%
• Country: JP
• Employees: 19,092
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 159.38
• Shares Outstanding: 371,822,700
• 10 Day Avg. Volume: 689,480
• 30 Day Avg. Volume: 708,543
• PEG Ratio: 0.23
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -0.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,030.00
• Price Target Upside: -7.25% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥4,264.00 ▼(-1.86% Downside)

Japan Post Insurance Co., Ltd. shows a reasonably strong overall performance with solid technical indicators and a fair valuation. The main challenges lie in financial performance, particularly in cash flow generation and revenue consistency. The stock's current upward trend is tempered by overbought signals, suggesting caution in the short term. The lack of new earnings call data or corporate events keeps the focus on existing financial and market data.

Positive Factors

Strategic Investment

The strategic investment in a reinsurance vehicle enhances access to reinsurance markets and strategic opportunities, potentially boosting long-term growth and diversification.

Management Change

Leadership change aims to strengthen management framework, potentially improving operational efficiency and competitive positioning in the long term.

Financial Transparency

Enhanced financial transparency through EEV disclosure builds stakeholder trust and provides clearer insights into financial health, supporting long-term confidence.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth can hinder long-term financial stability and limit the company's ability to invest in new opportunities or innovations.

Cash Flow Issues

Persistent cash flow issues may impact the company's ability to fund operations and growth initiatives, posing a risk to long-term sustainability.

Unrealized Losses

Significant unrealized losses on securities could affect the company's financial flexibility and investor confidence, impacting future investment strategies.

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

Company Description

Japan 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 Money

JAPAN POST INSURANCE generates revenue primarily through the sale of life insurance policies, which include premiums collected from policyholders. The company earns significant income from both traditional life insurance products and annuities, which require policyholders to pay premiums over time. Additionally, the company may invest the premiums received in various financial instruments, such as bonds and stocks, generating investment income. Key revenue streams include individual life insurance policies, group insurance plans, and retirement products. The company's affiliation with Japan Post enables it to leverage a vast distribution network, facilitating access to a wide customer base, which further enhances its revenue potential.

JAPAN POST INSURANCE Co., Ltd. Financial Statement Overview

Summary

Japan Post Insurance Co., Ltd. demonstrates strength in cost management and equity stability, but faces challenges with consistent revenue growth and cash flow generation. The company needs to address volatility in net income and improve operational cash flow to enhance financial health and investor confidence.

Income Statement

The company shows a mixed trend in revenue and profitability. Gross Profit Margin and EBIT Margin remain strong, reflecting efficient cost management. However, there is a notable fluctuation in revenue with a significant drop from 2020 to 2024, followed by an increase in 2025. The Net Profit Margin shows improvement in 2025, yet it remains volatile across the years, indicating potential instability in net income.

Balance Sheet

The balance sheet indicates a stable equity position with a strong Equity Ratio. The Debt-to-Equity Ratio remains manageable, suggesting prudent management of financial leverage. However, the Return on Equity (ROE) is inconsistent, reflecting variable profitability relative to shareholder equity. The company maintains a strong liquidity position with substantial cash reserves.

Cash Flow

The cash flow statement reveals challenges with negative Free Cash Flow and Operating Cash Flow over the years, indicating potential issues in cash generation from operations. However, the company has managed to reduce negative Free Cash Flow in 2025 compared to previous years. There is a need for improvement in cash flow efficiency to ensure sustainable growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.80T	3.54T	2.72T	3.10T	3.48T	3.76T
Gross Profit	3.93T	3.54T	2.72T	3.10T	3.48T	3.76T
EBITDA	182.59B	169.69B	167.45B	181.96B	277.49B	295.24B
Net Income	137.17B	123.47B	87.06B	97.61B	158.06B	166.10B
Balance Sheet
Total Assets	58.93T	59.56T	60.86T	62.69T	67.17T	70.17T
Cash, Cash Equivalents and Short-Term Investments	0.00	1.98T	1.16T	1.44T	1.27T	1.34T
Total Debt	4.84T	500.00B	400.00B	300.00B	300.00B	300.00B
Total Liabilities	55.55T	56.31T	57.46T	60.31T	64.75T	67.33T
Stockholders Equity	3.38T	3.24T	3.40T	2.38T	2.42T	2.84T
Cash Flow
Free Cash Flow	-1.64T	-1.64T	-3.11T	-3.01T	-2.79T	-2.84T
Operating Cash Flow	-1.63T	-1.63T	-3.06T	-2.98T	-2.76T	-2.81T
Investing Cash Flow	2.39T	2.39T	2.72T	3.22T	3.11T	2.55T
Financing Cash Flow	60.14B	60.14B	62.17B	-72.94B	-420.27B	176.74B

JAPAN POST INSURANCE Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4345.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4345 is above the 20-day moving average (MA) of 4092.60, above the 50-day MA of 4104.77, and above the 200-day MA of 3441.30, indicating a bullish trend. The MACD of 51.45 indicates Negative momentum. The RSI at 62.80 is Neutral, neither overbought nor oversold. The STOCH value of 73.63 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7167	71 Outperform	¥839.97B	15.22	―	2.21%	18.45%	41.89%
7181	70 Outperform	¥1.44T	11.13	―	2.75%	-21.38%	58.05%
8750	69 Neutral	$4.00T	11.85	10.61%	3.53%	-8.02%	5.21%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7157	67 Neutral	¥156.18B	21.33	―	―	20.22%	19.40%
7163	67 Neutral	―	―	―	―	23.73%	12.39%
8795	61 Neutral	¥1.72T	13.34	8.83%	3.06%	-1.96%	10.32%

JAPAN POST INSURANCE Co., Ltd. Corporate Events

Japan Post Insurance Initiates Treasury Stock Acquisition

Japan Post Insurance Co., Ltd. has announced the commencement of acquiring treasury stock through the Tokyo Stock Exchange’s auction market. This move aims to ensure that the voting rights of Japan Post Holdings Co., Ltd. remain at 50% or less, potentially impacting the company’s shareholder structure and market positioning.

The most recent analyst rating on (JP:7181) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on JAPAN POST INSURANCE Co., Ltd. stock, see the JP:7181 Stock Forecast page.

Japan Post Insurance Completes Major Treasury Stock Acquisition

Japan Post Insurance Co., Ltd. has completed a significant acquisition of treasury stock, purchasing over 5.4 million 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 plans to continue acquiring shares to maintain the voting rights ratio of its parent company, Japan Post Holdings Co., Ltd., at 50% or less. The acquisition is expected to impact the company’s market positioning and shareholder value positively.

The most recent analyst rating on (JP:7181) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on JAPAN POST INSURANCE Co., Ltd. stock, see the JP:7181 Stock Forecast page.

Japan Post Insurance Announces Treasury Stock Acquisition Plan

JAPAN POST INSURANCE Co., Ltd. has announced plans to acquire its treasury stock through the Off-auction Own Share Repurchase Trading System (ToSTNeT-3) on the Tokyo Stock Exchange. This move, resolved by the Board of Directors, involves acquiring up to 10,848,600 shares at a maximum total cost of approximately 45 billion yen. The acquisition aims to manage the company’s capital structure and maintain the voting rights ratio of JAPAN POST HOLDINGS Co., Ltd. at 50% or less. The initiative reflects the company’s strategic approach to enhancing shareholder value and optimizing its financial operations.

The most recent analyst rating on (JP:7181) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on JAPAN POST INSURANCE Co., Ltd. stock, see the JP:7181 Stock Forecast page.

Japan Post Insurance Reports Strong Financial Performance and Revises Forecasts Upward

Japan Post Insurance reported a significant increase in net income by 49.3% year-on-year for the six months ended September 30, 2025, driven by a decrease in policy reserve burdens and improved market conditions. Despite a decline in new policy sales, the company has revised its full-year forecasts upward, reflecting increased investment income and reduced operating expenses, while also planning a substantial acquisition of treasury stock.

The most recent analyst rating on (JP:7181) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on JAPAN POST INSURANCE Co., Ltd. stock, see the JP:7181 Stock Forecast page.

Japan Post Insurance Announces Treasury Stock Acquisition Plan

Japan Post Insurance Co., Ltd. has resolved to acquire its treasury stock as part of its shareholder return policies, aiming for a total payout ratio of approximately 55% for the fiscal year ending March 31, 2026. This move is intended to improve capital efficiency and maintain the voting rights ratio of its shares held by its parent company, Japan Post Holdings Co., Ltd., at 50% or less. The acquisition involves purchasing up to 20 million shares through the Tokyo Stock Exchange, with a maximum total amount of 45 billion yen. The transaction is considered significant with the controlling shareholder, Japan Post Holdings, which plans to sell a portion of its shares in line with this acquisition.

The most recent analyst rating on (JP:7181) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on JAPAN POST INSURANCE Co., Ltd. stock, see the JP:7181 Stock Forecast page.

Japan Post Insurance Revises Financial Forecast Upwards for FY 2026

Japan Post Insurance Co., Ltd. has revised its financial forecast for the fiscal year ending March 31, 2026, projecting increased ordinary income, ordinary profit, and net income attributable to the company. The upward revision is attributed to improved market conditions leading to higher investment income and reduced operating expenses, indicating a positive outlook for the company’s financial performance.

The most recent analyst rating on (JP:7181) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on JAPAN POST INSURANCE Co., Ltd. stock, see the JP:7181 Stock Forecast page.

Japan Post Insurance Reports Significant Unrealized Losses on Securities

Japan Post Insurance Co., Ltd. has reported unrealized losses on its securities amounting to 2,851,503 million yen as of September 30, 2025. Despite these losses, the company has not revised its financial or dividend forecasts for the fiscal year ending March 31, 2026, indicating stability in its financial outlook.

The most recent analyst rating on (JP:7181) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on JAPAN POST INSURANCE Co., Ltd. stock, see the JP:7181 Stock Forecast page.