DB:1JP

Stock Analysis Report

Japan Post Holdings

Executive Summary

Japan Post Holdings Co., Ltd., through its subsidiaries, provides postal, banking, and insurance services in Japan.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Japan Post Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1JP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

1JP

-1.1%

DE Insurance

-0.2%

DE Market


1 Year Return

-22.3%

1JP

25.8%

DE Insurance

13.7%

DE Market

Return vs Industry: 1JP underperformed the German Insurance industry which returned 25.8% over the past year.

Return vs Market: 1JP underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

1JPIndustryMarket
7 Day-2.4%-1.1%-0.2%
30 Day-0.6%3.4%0.3%
90 Day-2.4%6.8%3.7%
1 Year-18.9%-22.3%31.3%25.8%17.2%13.7%
3 Year-24.5%-33.3%64.4%44.5%15.4%5.3%
5 Yearn/a98.0%58.5%21.3%4.7%

Price Volatility Vs. Market

How volatile is Japan Post Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Japan Post Holdings undervalued compared to its fair value and its price relative to the market?

7.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1JP (€8.25) is trading above our estimate of fair value (€7.43)

Significantly Below Fair Value: 1JP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1JP is good value based on its PE Ratio (8x) compared to the Insurance industry average (12.6x).

PE vs Market: 1JP is good value based on its PE Ratio (8x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: 1JP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 1JP is good value based on its PB Ratio (0.3x) compared to the DE Insurance industry average (1.2x).


Next Steps

Future Growth

How is Japan Post Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1JP's earnings are forecast to decline over the next 3 years (-7% per year).

Earnings vs Market: 1JP's earnings are forecast to decline over the next 3 years (-7% per year).

High Growth Earnings: 1JP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 1JP's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: 1JP's revenue is forecast to decline over the next 3 years (-0.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1JP's Return on Equity is forecast to be low in 3 years time (2.7%).


Next Steps

Past Performance

How has Japan Post Holdings performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1JP has high quality earnings.

Growing Profit Margin: 1JP's current net profit margins (4.2%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: 1JP's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: 1JP's earnings growth over the past year (6.6%) is below its 5-year average (12.7% per year).

Earnings vs Industry: 1JP earnings growth over the past year (6.6%) underperformed the Insurance industry 7.8%.


Return on Equity

High ROE: 1JP's Return on Equity (3.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Japan Post Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 1JP has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1JP's debt is covered by short term assets (assets are 3.6x debt).


Financial Institutions Analysis

Asset Level: 1JP's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 1JP has a sufficient allowance for bad loans.

Low Risk Liabilities: 1JP's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1JP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1JP's loans are broadly funded by customer deposits.

Level of Bad Loans: 1JP has an appropriate level of bad loans (0%)


Next Steps

Dividend

What is Japan Post Holdings's current dividend yield, its reliability and sustainability?

4.98%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 21 2020Ex Dividend DateMar 30 2020Dividend Pay DateJun 20 202082 days from Ex DividendBuy in the next 37 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: 1JP's dividend (4.98%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 1JP's dividend (4.98%) is in the top 25% of dividend payers in the German market (3.65%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1JP has been paying a dividend for less than 10 years.

Growing Dividend: 1JP has only been paying a dividend for 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.7%), 1JP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Hiroya Masuda 0

0.08yrs

Tenure

Hiroya Masuda serves as Chief Executive Officer, President and Representative Executive Officer of Japan Post Holdings Co. Ltd. since January 2020. He was the head of the government ministry that supervise ...


Leadership Team

NamePositionTenureCompensationOwnership
Hiroya Masuda
President0.08yrsno datano data
Katsunori Sago
Head of Asset Management for Banking Unit4.7yrsno datano data
Toshihide Komatsu
Executive VP & Representative Executive Officer6.4yrsno data0.00025% ¥84.1k
Kunio Tanigaki
Senior Managing Executive Officer2.1yrsno data0.00017% ¥57.2k
Kenji Fukumoto
Managing Executive Officer0yrsno data0.00011% ¥37.0k
Noboru Ichikura
Senior Managing Executive Officer3.7yrsno data0.00011% ¥37.0k
Chikashi Isayama
Managing Executive Officer0yrsno datano data
Susumu Tanaka
Managing Executive Officer0yrsno datano data
Kimihiko Oku
Managing Executive Officer0yrsno data0.00010% ¥33.6k
Yoshiharu Miyazaki
Managing Executive Officer0yrsno data0.000050% ¥16.8k

3.7yrs

Average Tenure

Experienced Management: 1JP's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kunio Ishihara
Outside Director4.7yrsno data0.00015% ¥50.5k
Charles Lake
Outside Director3.7yrsno datano data
Norito Ikeda
Director3.7yrsno data0.000030% ¥10.1k
Akio Mimura
Outside Director6.7yrsno datano data
Riki Mukai
Director2.8yrsno data0.000040% ¥13.5k
Michiko Hirono
Outside Director3.7yrsno data0.000060% ¥20.2k
Tadashi Yagi
Outside Director6.7yrsno data0.00013% ¥43.7k
Tsuyoshi Okamoto
Outside Director0yrsno datano data
Miharu Koezuka
Outside Director2.1yrsno data0.000010% ¥3.4k
Takayuki Aonuma
Outside Director0.7yrsno datano data

3.7yrs

Average Tenure

72yo

Average Age

Experienced Board: 1JP's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Japan Post Holdings Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Japan Post Holdings Co., Ltd.
  • Ticker: 1JP
  • Exchange: DB
  • Founded: 2006
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: JP¥4.063t
  • Listing Market Cap: JP¥33.635b
  • Shares outstanding: 4.04b
  • Website: https://www.japanpost.jp

Number of Employees


Location

  • Japan Post Holdings Co., Ltd.
  • 2-3-1 Otemachi
  • Chiyoda-ku
  • Tokyo
  • 100-8791
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6178TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYNov 2015
1JPDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2015
JPHL.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 2015
JPPH.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2016

Biography

Japan Post Holdings Co., Ltd., through its subsidiaries, provides postal, banking, and insurance services in Japan. It operates through Postal and Domestic Logistics, Post Office, International Logistics, Banking, and Life Insurance segments. The company engages in the postal, banking counter, and insurance counter operations; sale of documentary stamps; operations consigned by local government entities; and provision of other bank, and life and non-life insurance agency services. It also provides domestic distribution and delivery; international cargo transport and agency services for air cargo; logistics; real estate; and merchandise sale services. In addition, the company offers truck cargo transportation, automobile and machinery maintenance, vehicle maintenance and management, international air freight forwarding, post office advertisements posting, facilities management and contracting, automobile liability insurance agency, mail-order, wholesale, alcohol agency, 3PL, express, and securities investment management services. Further, it provides temporary staffing, contracting, office cleaning, hotel management, communication network maintenance and management, investment, management consulting, financial, and telemarketing services. Additionally, the company engages in the collection and delivery of Yu-pack and other items; preparation and posting of postal items, parcels, and mail items; planning, development, and sale of direct mail and contracted shipment of merchandise; sale of petroleum; property management for commercial buildings; sale of catalog products; and commissioning of design, development, maintenance, and operation of information systems. It also operates 6 Teishin hospitals; and 11 MIELPARQUE hotels and 53 Kanpo no Yado inns in Japan. The company was founded in 2006 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:35
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.