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Dai-ichi Life Holdings (JP:8750)
:8750

Dai-ichi Life Holdings (8750) AI Stock Analysis

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Dai-ichi Life Holdings

(OTC:8750)

64Neutral
Dai-ichi Life Holdings shows a stable financial position with strong revenue growth and cost management. However, the company's modest profitability and inconsistent cash flows present challenges. Technically, the stock faces resistance levels, and mixed indicators suggest cautious optimism. Valuation metrics remain favorable, making the stock relatively attractive despite the operational and market challenges.

Dai-ichi Life Holdings (8750) vs. S&P 500 (SPY)

Dai-ichi Life Holdings Business Overview & Revenue Model

Company DescriptionDai-ichi Life Holdings, Inc. is a leading Japanese financial services company primarily engaged in providing life insurance products and services. Established in 1902, the company offers a wide range of insurance products including individual life insurance, annuities, and group insurance. Dai-ichi Life operates both domestically and internationally, with subsidiaries and affiliates in key markets such as the United States, Australia, and other Asian countries. Its mission is to deliver peace of mind and serve as a lifelong partner to its customers by providing comprehensive insurance solutions tailored to meet diverse customer needs.
How the Company Makes MoneyDai-ichi Life Holdings generates revenue primarily through the sale of life insurance products and services. The company's key revenue streams include individual life insurance premiums, which constitute a significant portion of its income, as well as group insurance and annuity premiums. Investment income from the management of its substantial asset portfolio also contributes to its earnings. The company leverages its extensive distribution network, including sales representatives, financial institutions, and partnerships, to reach a broad customer base. Additionally, its international operations in markets like the United States and Australia help diversify its revenue sources. Dai-ichi Life's strategic investments and partnerships, as well as its focus on digital transformation, further enhance its profitability and competitive position in the global insurance industry.

Dai-ichi Life Holdings Financial Statement Overview

Summary
Dai-ichi Life Holdings demonstrates strong revenue growth and efficient cost management, with a robust gross profit margin. However, the moderate net profit margin and inconsistent cash flow performance highlight areas for improvement. The company's conservative capital structure is tempered by a lower equity ratio, indicating potential leverage risks.
Income Statement
Dai-ichi Life Holdings shows a strong revenue growth with a 16.28% increase from 2023 to 2024. The gross profit margin is robust at approximately 98.50% TTM, indicating efficient cost management. However, the net profit margin TTM is relatively moderate at 4.54%, suggesting room for improvement in profitability. The absence of EBIT in the annual data for 2024 indicates potential volatility in operating performance.
Balance Sheet
65
The company's debt-to-equity ratio is low at 0.21 TTM, reflecting a conservative capital structure and low financial risk. However, the equity ratio of 5.67% TTM indicates a high reliance on debt financing relative to equity. The return on equity TTM is solid at 11.74%, signifying effective utilization of equity.
Cash Flow
Cash flow metrics are challenging to assess due to the lack of detailed cash flow data for 2024 TTM. Historically, Dai-ichi Life has shown significant variability in operating and free cash flow, with negative free cash flow in recent years, raising concerns over cash generation capabilities.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
10.42T8.42T7.86T7.53T6.31T
Gross Profit
10.34T8.42T7.86T7.53T6.31T
EBIT
0.00140.46B357.70B375.75B-7.36B
EBITDA
565.73B395.02B591.04B589.33B209.89B
Net Income Common Stockholders
320.76B173.74B409.35B363.78B32.43B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.06T1.62T2.18T1.88T1.21T
Total Assets
67.54T61.58T65.88T63.59T60.01T
Total Debt
975.29B949.67B870.38B899.77B1.14T
Net Debt
-1.09T-669.41B-1.31T-984.37B-70.17B
Total Liabilities
63.66T58.71T61.47T58.79T56.24T
Stockholders Equity
3.88T2.87T4.41T4.81T3.78T
Cash FlowFree Cash Flow
904.23B-294.15B-611.09B-156.38B510.63B
Operating Cash Flow
997.38B-132.47B-462.08B-79.90B590.08B
Investing Cash Flow
-601.65B310.44B963.28B551.36B-896.44B
Financing Cash Flow
-145.76B-325.45B-180.71B65.59B784.87B

Dai-ichi Life Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1032.00
Price Trends
50DMA
1042.89
Negative
100DMA
1044.29
Negative
200DMA
1012.70
Positive
Market Momentum
MACD
-4.56
Negative
RSI
56.39
Neutral
STOCH
89.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8750, the sentiment is Positive. The current price of 1032 is above the 20-day moving average (MA) of 942.69, below the 50-day MA of 1042.89, and above the 200-day MA of 1012.70, indicating a neutral trend. The MACD of -4.56 indicates Negative momentum. The RSI at 56.39 is Neutral, neither overbought nor oversold. The STOCH value of 89.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8750.

Dai-ichi Life Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$10.78T10.3022.63%2.55%14.87%74.60%
72
Outperform
¥4.56T9.6117.07%2.69%11.37%27.90%
67
Neutral
$5.17T7.1717.38%2.93%-1.15%104.17%
64
Neutral
¥3.82T8.4813.11%3.03%2.99%81.04%
64
Neutral
$12.57B9.747.88%16985.68%12.42%-5.45%
59
Neutral
¥1.05T10.16
3.68%23.94%22.80%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8750
Dai-ichi Life Holdings
1,037.50
163.98
18.77%
JP:7181
JAPAN POST INSURANCE Co., Ltd.
2,822.00
-83.40
-2.87%
JP:8725
MS&AD Insurance Group Holdings
3,259.00
510.34
18.57%
JP:8766
Tokio Marine Holdings
5,821.00
925.65
18.91%
JP:8630
Sompo Holdings
4,766.00
1,709.53
55.93%

Dai-ichi Life Holdings Corporate Events

Dai-ichi Life Completes First Phase of Major Reinsurance Transaction
Apr 8, 2025

Dai-ichi Life Holdings has announced the completion of the first phase of a significant reinsurance transaction involving its subsidiary, Protective Life Corporation. This transaction involves ceding approximately 65% of a targeted USD 9.7 billion block of insurance policies, which is expected to increase the company’s total consolidated assets by over 30%. The transaction is progressing as planned, with further developments anticipated following the establishment of a captive entity, although it will not impact the company’s financial results for the fiscal year ending March 31, 2025.

Dai-ichi Life Completes New Share Issuance for Stock Remuneration
Mar 4, 2025

Dai-ichi Life Holdings has completed the payment related to the issuance of 2,000 new shares under its stock remuneration scheme, as approved by its Board of Directors. This move is part of the company’s strategy to align executive compensation with performance, potentially impacting its operational dynamics and stakeholder interests.

Dai-ichi Life and Marubeni Consolidate Real Estate Operations
Feb 28, 2025

Dai-ichi Life Holdings and Marubeni Corporation have announced a business consolidation agreement to merge their domestic real estate operations. This strategic move aims to create a robust real estate value chain by integrating development, ownership, leasing, and property management businesses. The collaboration is expected to enhance operational efficiency, create new value, and strengthen the revenue base for both companies, positioning them as leading players in Japan’s real estate asset management sector.

Dai-ichi Life Holdings Issues New Shares Under Stock Remuneration Scheme
Feb 14, 2025

Dai-ichi Life Holdings, Inc. announced a resolution to issue 2,000 new shares under a stock remuneration scheme aimed at aligning the interests of eligible directors and shareholders. This initiative, part of a broader strategy including a performance-linked stock compensation plan, is designed to incentivize directors, foster corporate growth, and enhance shareholder value.

Dai-ichi Life Enhances Shareholder Benefit Program with New Incentives
Feb 14, 2025

Dai-ichi Life Holdings announced an expansion of its shareholder benefit program to increase the attractiveness of its shares and encourage long-term holding. The revised program enhances the healthcare app ‘QOLism’ and the ‘Benefit Station’ lifestyle service, offering increased points and incentives for new and existing shareholders, thus potentially strengthening shareholder engagement and satisfaction.

Dai-ichi Life Holdings Announces Stock Split to Expand Investor Base
Feb 14, 2025

Dai-ichi Life Holdings has announced a stock split, aiming to lower the minimum investment unit to attract more investors and broaden its shareholder base. The split will see each existing share divided into four, increasing the total number of shares substantially, with no immediate impact on the company’s capital or year-end dividend policy.

Dai-ichi Life Holdings to Rebrand as Daiichi Life Group
Feb 14, 2025

Dai-ichi Life Holdings announced that it will change its trade name to Daiichi Life Group, Inc., effective April 1, 2026, to better reflect its expanded business focus beyond traditional life insurance. This rebranding aims to enhance the group’s unity, accelerate growth, and solidify its position as a top-tier global insurance group, while also emphasizing a broader commitment to opening up possibilities for people’s lives.

Dai-ichi Life Holdings Raises Earnings and Dividend Forecasts for Fiscal Year 2025
Feb 14, 2025

Dai-ichi Life Holdings has revised its consolidated earnings and dividend forecasts for the fiscal year ending March 31, 2025. The company expects an increase in ordinary revenues, profits, and dividends due to higher investment income and reduced amortization of intangible assets. This revision reflects a positive outlook for the company’s financial performance, potentially benefiting stakeholders through increased dividends and signaling strong operational efficiencies.

Neo First Life Reports Financial Results for Nine Months Ending 2024
Feb 14, 2025

Neo First Life Insurance Company, a subsidiary of Dai-ichi Life Holdings, reported its financial results for the nine months ending December 31, 2024. The announcement includes detailed financial and investment results, providing insights into the company’s performance and financial health, which are crucial for stakeholders to understand its market position and future prospects.

Dai-ichi Frontier Life Insurance Announces Nine-Month Financial Results
Feb 14, 2025

The Dai-ichi Frontier Life Insurance Co., Ltd., a subsidiary of Dai-ichi Life Holdings, has released its financial results for the nine months ending December 31, 2024. The announcement highlights the company’s financial performance and provides detailed insights into its investment results, balance sheet, and solvency margin ratio, offering stakeholders a comprehensive view of its operational stability and financial health.

Dai-ichi Life Reports Nine-Month Financial Results for 2024
Feb 14, 2025

The Dai-ichi Life Insurance Company, Limited announced its financial results for the nine months ending December 31, 2024, highlighting the company’s business performance and financial standing. The report covers key areas such as business highlights, investment results, and financial summaries, reflecting its operational health and market positioning.

Dai-ichi Life Holdings Reports Strong Financial Growth and Revises Forecasts
Feb 14, 2025

Dai-ichi Life Holdings reported a significant increase in net income of 62.3% for the nine months ended December 31, 2024, reflecting a strong operational performance compared to the previous year. The company has revised its dividend forecasts and consolidated earnings projections for the fiscal year ending March 31, 2025, indicating a strategic adjustment to sustain its financial robustness and shareholder value.

Dai-ichi Life Considers Name Change and Extraordinary Loss Report
Feb 14, 2025

Dai-ichi Life Holdings addressed media reports about a potential name change to ‘Daiichi Life Group’ and an expected extraordinary loss of nearly 30 billion yen due to the ‘Second Career Special Support Framework.’ The company confirmed these matters are under consideration and will discuss them at a Board of Directors meeting, promising timely disclosures if necessary.

Dai-ichi Life Holdings to Acquire Shares in IRRC Corporation
Feb 5, 2025

Dai-ichi Life Holdings, Inc. has announced its decision to acquire 6.91% of IRRC Corporation’s shares from its subsidiary, Neo First Life Insurance Co., Ltd. This strategic move involves the acquisition of 566,800 shares, and it is significant as it constitutes an act of buying up specified by Japanese financial regulations, indicating a potential impact on the company’s market positioning and stakeholder interests.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.