Earnings Alerts

Japan Post Insurance (7181) Earnings: FY Net Income Forecast Boosted, Q2 Results Exceed Estimates

By November 14, 2024 No Comments
  • JP Insurance has increased its full-year net income forecast to 120.00 billion yen from a previous forecast of 79.00 billion yen. The market estimate was 86.39 billion yen.
  • The company anticipates net sales for the fiscal year to reach 6.13 trillion yen, up from 5.96 trillion yen last year, though slightly below the market estimate of 6.19 trillion yen.
  • JP Insurance expects to maintain its dividend payout at 104.00 yen per share, slightly above the market estimate of 103.50 yen.
  • In the second quarter, JP Insurance reported a net income of 41.94 billion yen, significantly surpassing the market estimate of 22.35 billion yen (based on 2 estimates).
  • Analyst recommendations for JP Insurance include 4 buy ratings, 6 hold ratings, and no sell ratings.

Japan Post Insurance on Smartkarma

Analyst coverage of Japan Post Insurance on Smartkarma reveals insightful research by Daniel Tabbush. Tabbush’s bearish sentiment is based on the report titled “Japan Post Insurance – Weakening Policies In Force and Meaningful Hits from Non-Operational Items.” The analysis highlights concerns such as weakening policies in force, high claims and operating costs, and substantial non-operational negatives impacting the company. Tabbush emphasizes that the focus should shift from new insurance sales to the more critical aspects of returns and profit growth, which are currently weak due to operational challenges.

The report underscores that non-operational line items, possibly related to hedging costs and reserve adjustments, are offsetting any positives in operations for Japan Post Insurance. Tabbush’s detailed analysis on Smartkarma provides a comprehensive view of the company’s challenges, signaling potential risks for investors to consider before making investment decisions in Japan Post Insurance (7181 JP).


A look at Japan Post Insurance Smart Scores

FactorScoreMagnitude
Value5
Dividend5
Growth3
Resilience5
Momentum2
OVERALL SMART SCORE4.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Japan Post Insurance is poised for a strong long-term outlook based on its Smartkarma Smart Scores. With top scores in Value, Dividend, and Resilience, the company demonstrates robust financial health and stability. This indicates that Japan Post Insurance is undervalued, offers attractive dividends to investors, and has a resilient business model that can weather economic challenges.

While the Growth and Momentum scores are slightly lower, at 3 and 2 respectively, the overall high ratings suggest that Japan Post Insurance is a solid choice for investors seeking a reliable and secure investment in the insurance sector. The company’s focus on whole life insurance, education endowment, and other key services for individuals and businesses across Japan further reinforces its position as a reputable player in the industry.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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