- JP Insurance has increased its forecast for the full year’s net income to 82.00 billion yen, up from a previous estimate of 72.00 billion yen.
- The new net income forecast, however, falls slightly short of the market estimate of 83.41 billion yen.
- JP Insurance also anticipates net sales to reach 6.69 trillion yen, an increase from the previous 5.89 trillion yen.
- The projected net sales surpass market estimates, which were at 6.1 trillion yen.
- The firm’s current ratings stand at 4 buys, 6 holds, and 1 sell.
- All comparisons to past results are based on the values that JP Insurance originally disclosed.
Japan Post Insurance on Smartkarma
On Smartkarma, an independent investment research network, analyst Alec Tseung has published a bearish insight on Japan Post Insurance. In his report, Tseung discusses how the company’s embedded value is unlikely to benefit from a potential rate increase in Japan, due to its mark-to-market adjustments and weak new business value. While Japan Post Insurance may seem undervalued based on a regression analysis, its strong Return on Equity (RoE) is actually due to extraordinary gains, not sustainable business practices. Tseung also notes that Japan Post Insurance has a larger portion of its investment securities being carried at cost on its balance sheet compared to its peer, Dai-ichi Life. With Japan’s “higher for longer” theme, the company’s embedded value growth could face additional pressure due to these factors.
A look at Japan Post Insurance Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.2 |
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 Co. Ltd. is looking at a positive long-term outlook, according to the Smartkarma Smart Scores. The company has received a score of 5 out of 5 for both Value and Dividend, indicating strong financial performance and potential for good returns for investors.
In addition, Japan Post Insurance has been rated 5 out of 5 for Resilience, meaning the company is well-equipped to handle potential challenges and maintain stability in the long run. This is further supported by a score of 4 for Momentum, indicating positive market sentiment and potential for growth.
However, the company has received a score of 2 for Growth, suggesting that there may be some room for improvement in terms of expanding its business and increasing its market share. Nonetheless, with solid scores in other areas, Japan Post Insurance remains a strong and reliable player in the life insurance industry, providing valuable services to individuals and businesses throughout Japan.
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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