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Nippon Souken CoTSE:5840 57 Debt-to-EBITDA is 4.48 as of May. 2026, which is 4% below its 10-year median of 4.66. GuruFocus rates TSE:5840 with a GF Score™ of 57/100 and a GF Value™ of 円605.87 (Modestly Undervalued). Among 320 Insurance companies, Nippon Souken Co ranks worse than 67.19% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Nippon Souken Co's Debt-to-EBITDA or its related term are showing as below:
TSE:5840'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.73 Med: 4.66 Max: 188.25
Current: 1.97
During the past 5 years, the highest Debt-to-EBITDA Ratio of Nippon Souken Co was 188.25. The lowest was 1.73. And the median was 4.66.
TSE:5840's Debt-to-EBITDA is ranked worse than 67.19% of 320
companies
in the Insurance industry
Industry Median: 1.235
vs TSE:5840: 1.97
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Nippon Souken Co Debt-to-EBITDA Related Terms
Nippon Souken Co Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Nippon Souken Co's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSE:5840 vs MRSH, AON, AJG: Debt-to-EBITDA Comparison
For the Insurance Brokers subindustry, Nippon Souken Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nippon Souken Co Debt-to-EBITDA vs Insurance Industry
For the Insurance industry and Financial Services sector, Nippon Souken Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Nippon Souken Co's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is two times the quarterly (May. 2026) EBITDA data.
Nippon Souken Co (TSE:5840) has a Debt-to-EBITDA of 4.48 as of May. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Nippon Souken Co. This is near median its historical median of 4.66. Over the past decade, Nippon Souken Co's Debt-to-EBITDA has ranged from 1.73 to 188.25. According to the industry distribution chart, Nippon Souken Co ranks #215 out of 320 companies in the Insurance industry, placing it in the top 67.2%.
Is Nippon Souken Co's Debt-to-EBITDA too high?
Nippon Souken Co's current Debt-to-EBITDA of 4.48 is near median its 10-year median of 4.66. Over the past 10 years, this metric has ranged from a low of 1.73 to a high of 188.25. The Insurance industry median Debt-to-EBITDA is 1.24. Nippon Souken Co's value of 4.48 is 262.8% above this industry median. Based on the distribution chart, Nippon Souken Co ranks #215 out of 320 companies in the Insurance industry, which is below the industry midpoint. Overall, Nippon Souken Co has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Souken Co's Debt-to-EBITDA compare to MRSH and AON?
According to the Insurance industry distribution chart, Nippon Souken Co ranks #215 out of 320 companies for Debt-to-EBITDA. This places Nippon Souken Co in the lower half of its industry. The industry median Debt-to-EBITDA is 1.24. Nippon Souken Co's value of 4.48 is 262.8% above this benchmark. Historically, Nippon Souken Co's own Debt-to-EBITDA has ranged from 1.73 to 188.25 over the past decade. While the company's 10-year median is 4.66 vs. the industry median of 1.24, Nippon Souken Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Insurance company?
The median Debt-to-EBITDA among Insurance companies is 1.24, based on 320 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Souken Co's current Debt-to-EBITDA of 4.48 is 262.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Nippon Souken Co. For the Insurance industry, the median Debt-to-EBITDA is 1.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Souken Co's current Debt-to-EBITDA is 4.48, which is near median its own 10-year median of 4.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Souken Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Souken Co (TSE:5840) is currently considered Modestly Undervalued. The stock's GF Value™ is 円605.87, compared to a current price of 円505.00 — trading 16.6% below its estimated fair value. The current Debt-to-EBITDA is 4.48, which is near median its 10-year median of 4.66 and 262.8% above the Insurance industry median of 1.24. Nippon Souken Co's overall GF Score™ is 57/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Nippon Souken Co (TSE:5840), the current Debt-to-EBITDA is 4.48 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nippon Souken Co (TSE:5840) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Souken Co stock appears to be undervalued.
The current stock price of 円505.00 is trading 16.6% below its estimated GF Value™ of 円605.87.
GuruFocus considers Nippon Souken Co to be Modestly Undervalued.
Key valuation signals for TSE:5840:
Debt-to-EBITDA: 4.48 (near median its 10-year median of 4.66)
GF Value™: 円605.87 vs. price of 円505.00 (16.6% below fair value)
Industry Position: 262.8% above the Insurance median (#215 of 320)
No single metric tells the full story. See the TSE:5840 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Souken Co Ltd is an insurance broker authorized by the Financial Services Agency to perform its functions in risk and insurance sector. The company provides a one-stop solution to the problems faced by insurance representatives.
57GF Score
Get the complete analysis for TSE:5840
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