Nippon Souken Co (TSE:5840) Effective Interest Rate on Debt %: 1.47% (As of May. 2026)

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TSE:5840 Nippon Souken Co Ltd TSE:5840
57 GF Score
Price 円505.00
GF Value 円601.19
Valuation Modestly Undervalued
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What is Nippon Souken Co Effective Interest Rate on Debt %?

Nippon Souken Co TSE:5840 57 Effective Interest Rate on Debt % is 1.47% as of May. 2026. GuruFocus rates TSE:5840 with a GF Score™ of 57/100 and a GF Value™ of 円601.19 (Modestly Undervalued).

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Nippon Souken Co's annualized positive value of Interest Expense for the quarter that ended in May. 2026 was 円2.2 Mil. Nippon Souken Co's average total debt for the quarter that ended in May. 2026 was 円146.2 Mil. Therefore, Nippon Souken Co's annualized Effective Interest Rate on Debt % for the quarter that ended in May. 2026 was 1.47%.


Nippon Souken Co  (TSE:5840) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Nippon Souken Co Effective Interest Rate on Debt % Related Terms


Nippon Souken Co Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Nippon Souken Co's Effective Interest Rate on Debt % 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.

Nippon Souken Co Effective Interest Rate on Debt % Chart

Nippon Souken Co Annual Data
Trend Nov21 Nov22 Nov23 Nov24 Nov25
Effective Interest Rate on Debt %
0.71 0.67 0.99 1.02 1.36

Nippon Souken Co Semi-Annual Data
Nov21 Nov22 May23 Nov23 May24 Nov24 May25 Nov25 May26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only 1.03 1.22 1.29 1.38 1.47

TSE:5840 vs MRSH, AON, AJG: Effective Interest Rate on Debt % Comparison

For the Insurance Brokers subindustry, Nippon Souken Co's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Insurance Industry

For the Insurance industry and Financial Services sector, Nippon Souken Co's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Nippon Souken Co's Effective Interest Rate on Debt % falls into.


TSE:5840
57GF Score
Nippon Souken Co Ltd TSE:5840
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Nippon Souken Co Effective Interest Rate on Debt % Calculation

Nippon Souken Co's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Nov. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Nov. 2024 )+Total Debt  (A: Nov. 2025 ))/ count )
=-1  *  -2.255/( (183.728+148.896)/ 2 )
=-1  *  -2.255/166.312
=1.36 %

where

Total Debt  (A: Nov. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=142.409 + 41.319
=183.728

Total Debt  (A: Nov. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=103.531 + 45.365
=148.896

Nippon Souken Co's annualized Effective Interest Rate on Debt % for the quarter that ended in May. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Nov. 2025 )+Total Debt  (Q: May. 2026 ))/ count )
=-1  *  -2.156/( (148.896+143.486)/ 2 )
=-1  *  -2.156/146.191
=1.47 %

where

Total Debt  (Q: Nov. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=103.531 + 45.365
=148.896

Total Debt  (Q: May. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=85.034 + 58.452
=143.486

* 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is two times the semi-annual (May. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 1.47% mean?
Nippon Souken Co (TSE:5840) has a Effective Interest Rate on Debt % of 1.47% as of May. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Nippon Souken Co and its competitors.
Is Nippon Souken Co's Effective Interest Rate on Debt % too high?
Nippon Souken Co's current Effective Interest Rate on Debt % is 1.47%. 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 Effective Interest Rate on Debt % compare to MRSH and AON?
Nippon Souken Co's Effective Interest Rate on Debt % of 1.47% can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for an Insurance company?
A good Effective Interest Rate on Debt % depends on the Insurance industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Nippon Souken Co and its competitors. Nippon Souken Co's current Effective Interest Rate on Debt % is 1.47%. 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601.19, compared to a current price of 円505.00 — trading 16% below its estimated fair value. The current Effective Interest Rate on Debt % is 1.47%. 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 Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Nippon Souken Co (TSE:5840), the current Effective Interest Rate on Debt % is 1.47% 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% below its estimated GF Value™ of 円601.19. GuruFocus considers Nippon Souken Co to be Modestly Undervalued.

Key valuation signals for TSE:5840:

  • Effective Interest Rate on Debt %: 1.47%
  • GF Value™: 円601.19 vs. price of 円505.00 (16% below fair value)
  • GF Score™: 57/100

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 Business Description

Address 2-1 Sunport, Takamatsu Symbol Tower 9th floor, Kagawa Prefecture, Takamatsu, JPN, 760-0019
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

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円505.00
Price
円601.19
GF Value