| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 978.71 | -59 |
| Intrinsic value (DCF) | 5620.80 | 134 |
| Graham-Dodd Method | 1214.93 | -50 |
| Graham Formula | 1956.06 | -19 |
Nippon Insure Co., Ltd. (5843.T) is a Japan-based specialty insurance company headquartered in Fukuoka City. Founded in 2002 and operating as a subsidiary of Miyoshi Real Estate Co., Ltd., the company specializes in rent liability guarantee services for rental housing, stores, and offices. Additionally, it offers niche insurance products such as long-term care expenses liability guarantees, nursing care debt guarantees, and hospitalization expenses liability guarantees. Beyond insurance, Nippon Insure diversifies its operations with laundry and fitness services. The company operates in the Financial Services sector under the Specialty Insurance industry, catering to Japan's rental and healthcare markets. With a market capitalization of approximately ¥5.09 billion, Nippon Insure leverages its real estate affiliation to provide tailored risk management solutions, positioning itself as a key player in Japan's growing rental guarantee and healthcare-related insurance segments.
Nippon Insure Co., Ltd. presents a niche investment opportunity within Japan's specialty insurance market, supported by its unique product offerings and affiliation with Miyoshi Real Estate. The company's focus on rent liability guarantees aligns with Japan's robust rental housing market, while its healthcare-related guarantees tap into an aging demographic. However, investors should note the company's negative beta (-1.098), suggesting potential volatility and inverse correlation to broader market trends. Financials show modest revenue (¥3.22 billion) and net income (¥280 million), with a strong cash position (¥2.46 billion) and manageable debt (¥503 million). The dividend yield (¥26 per share) may appeal to income-focused investors, but the company's small market cap and specialized operations warrant caution regarding scalability and competitive pressures.
Nippon Insure Co., Ltd. competes in Japan's specialty insurance market with a focus on rent liability and healthcare-related guarantees. Its competitive advantage stems from its subsidiary relationship with Miyoshi Real Estate, providing synergies in rental housing guarantees and localized market expertise. The company's niche offerings, such as nursing care debt guarantees, differentiate it from broader insurers, though this specialization also limits diversification. Operating cash flow (¥196.6 million) and capital expenditures (-¥3.2 million) indicate stable operations with minimal reinvestment needs. However, the company faces competition from larger insurers with greater resources and brand recognition. Its negative beta suggests unique risk exposure, potentially appealing to investors seeking non-correlated assets. The lack of international presence contrasts with global insurers but allows focused execution in Japan's regulated market. Long-term growth hinges on demographic trends (e.g., aging population) and rental market dynamics, but scalability may be constrained by the specialized nature of its products.