DB:4JP

Stock Analysis Report

Japan Post Insurance

Executive Summary

Japan Post Insurance Co., Ltd. provides life insurance products and services in Japan.

Rewards

PE ratio (8.8x) is below the German market (20.8x)

Earnings have grown 12.6% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -8.7% per year for the next 3 years

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 4JP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

4JP

1.7%

DE Insurance

0.7%

DE Market


1 Year Return

-21.7%

4JP

31.5%

DE Insurance

15.1%

DE Market

Return vs Industry: 4JP underperformed the German Insurance industry which returned 31.5% over the past year.

Return vs Market: 4JP underperformed the German Market which returned 15.1% over the past year.


Shareholder returns

4JPIndustryMarket
7 Day2.6%1.7%0.7%
30 Day8.9%0.4%-0.7%
90 Day15.2%7.8%5.9%
1 Year-17.4%-21.7%37.2%31.5%18.7%15.1%
3 Year-14.6%-23.0%63.3%43.6%19.2%8.6%
5 Yearn/a113.0%70.6%39.0%20.1%

Price Volatility Vs. Market

How volatile is Japan Post Insurance'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 Insurance undervalued compared to its fair value and its price relative to the market?

8.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 4JP (€15.9) is trading above our estimate of fair value (€15.19)

Significantly Below Fair Value: 4JP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 4JP is good value based on its PE Ratio (8.8x) compared to the Insurance industry average (11.8x).

PE vs Market: 4JP is good value based on its PE Ratio (8.8x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: 4JP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 4JP is good value based on its PB Ratio (0.5x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Japan Post Insurance forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4JP's earnings are forecast to decline over the next 3 years (-8.7% per year).

Earnings vs Market: 4JP's earnings are forecast to decline over the next 3 years (-8.7% per year).

High Growth Earnings: 4JP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 4JP's revenue (1.9% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: 4JP's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4JP's Return on Equity is forecast to be low in 3 years time (5.2%).


Next Steps

Past Performance

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

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4JP has a high level of non-cash earnings.

Growing Profit Margin: 4JP's current net profit margins (2.7%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: 4JP's earnings have grown by 12.6% per year over the past 5 years.

Accelerating Growth: 4JP's earnings growth over the past year (5%) is below its 5-year average (12.6% per year).

Earnings vs Industry: 4JP earnings growth over the past year (5%) underperformed the Insurance industry 7.8%.


Return on Equity

High ROE: 4JP's Return on Equity (5.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Japan Post Insurance'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: 4JP has a low level of unsold assets or inventory.

Debt Coverage by Assets: 4JP's debt is covered by short term assets (assets are 2x debt).


Financial Institutions Analysis

Asset Level: 4JP's level of assets compared to its equity is very high.

Allowance for Bad Loans: Insufficient data to determine if 4JP has a sufficient allowance for bad loans.

Low Risk Liabilities: 4JP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 4JP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 4JP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 4JP has an appropriate level of bad loans.


Next Steps

Dividend

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

3.93%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Japan Post Insurance before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.9%marketbottom25%1.4%markettop25%3.6%industryaverage3.8%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: 4JP's dividend (3.93%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 4JP's dividend (3.93%) is in the top 25% of dividend payers in the German market (3.61%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 4JP has been paying a dividend for less than 10 years.

Growing Dividend: 4JP's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.2%), 4JP'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

What is the CEO of Japan Post Insurance's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Mitsuhiko Uehira (63yo)

2.5yrs

Tenure

0

Mr. Mitsuhiko Uehira has been the President, CEO, Representative Executive Officer and Director at Japan Post Insurance Co. Ltd. since June 2017. Mr. Uehira has been the Director of Japan Post Holdings Co. ...


Management Age and Tenure

3.0yrs

Average Tenure

59.5yo

Average Age

Experienced Management: 4JP's management team is considered experienced (3 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

65yo

Average Age

Experienced Board: 4JP's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Masaaki Horigane (63yo)

    Deputy President

    • Tenure: 2.5yrs
  • Yoshito Horiie (60yo)

    Senior Managing Executive Officer

    • Tenure: 3.7yrs
  • Mitsuhiko Uehira (63yo)

    President

    • Tenure: 2.5yrs
  • Tomoaki Nara (58yo)

    Managing Executive Officer

    • Tenure: 0yrs
  • Nobuyasu Kato (54yo)

    Managing Executive Officer

    • Tenure: 3.5yrs
  • Yasuaki Hironaka (56yo)

    Managing Executive Officer

    • Tenure: 3.5yrs
  • Yasumi Suzukawa (60yo)

    Managing Executive Officer

    • Tenure: 2.5yrs
  • Tetsuya Senda (59yo)

    Deputy President & Representative Executive Officer

    • Tenure: 0.7yrs
  • Toru Onishi (53yo)

    Executive Officer & Senior GM of Kinki Regional Headquarters

    • Tenure: 0yrs
  • Michiko Matsuda (64yo)

    Managing Executive Officer

    • Tenure: 1.5yrs

Board Members

  • Masatsugu Nagato (71yo)

    Director

    • Tenure: 3.5yrs
  • Tamotsu Saito (67yo)

    Outside Director

    • Tenure: 2.5yrs
  • Kazuyuki Harada (65yo)

    Outside Director

    • Tenure: 1.5yrs
  • Masako Suzuki (65yo)

    Outside Director

    • Tenure: 3.5yrs
  • Meyumi Yamada (47yo)

    Outside Director

    • Tenure: 2.5yrs
  • Masaaki Horigane (63yo)

    Deputy President

    • Tenure: 2.5yrs
  • Mitsuhiko Uehira (63yo)

    President

    • Tenure: 2.5yrs
  • Michiaki Ozaki (67yo)

    Outside Director

    • Tenure: 2.5yrs
  • Yoshie Komuro (44yo)

    Outside Director

    • Tenure: 2.5yrs

Company Information

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


Key Information

  • Name: Japan Post Insurance Co., Ltd.
  • Ticker: 4JP
  • Exchange: DB
  • Founded: 2006
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: JP¥1.087t
  • Listing Market Cap: JP¥9.009b
  • Shares outstanding: 562.41m
  • Website: https://www.jp-life.japanpost.jp

Number of Employees


Location

  • Japan Post Insurance Co., Ltd.
  • Otemachi Place West Tower 3-1
  • Otemachi 2-chome
  • Tokyo
  • 100-8794
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
7181TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYNov 2015
4JPDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2015
JPPI.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 2015

Biography

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; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 22:53
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.