Nippon Souken CoTSE:5840 11 Interest Coverage is 45.19 as of Nov. 2025, which is 67% above its 10-year median of 27.08. GuruFocus rates TSE:5840 with a GF Score™ of 11/100. Among 352 Insurance companies, Nippon Souken Co ranks better than 63.64% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
EBIT
by its Interest Expense. Nippon Souken Co's
EBIT
for the
six
months ended in Nov. 2025 was 円50.2 Mil. Nippon Souken Co's Interest Expense for the
six
months ended in Nov. 2025 was 円-1.1 Mil.
Nippon Souken Co's interest coverage for the quarter that ended in Nov. 2025 was 45.19.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Nippon Souken Co's Interest Coverage or its related term are showing as below:
TSE:5840'
s Interest Coverage Range Over the Past 10 Years
Min: 6.29 Med: 27.08 Max: 35.77
Current: 32.86
TSE:5840's Interest Coverage is ranked better than 63.64% of 352
companies
in the Insurance industry
Industry Median: 16.245
vs TSE:5840: 32.86
Nippon Souken Co (TSE:5840) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Nippon Souken Co Interest Coverage Related Terms
Nippon Souken Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nippon Souken Co's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
TSE:5840 vs MRSH, AON, AJG: Interest Coverage Comparison
For the Insurance Brokers subindustry, Nippon Souken Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Nippon Souken Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nippon Souken Co's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (TSE:5840) has a Interest Coverage of 45.19 as of Nov. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Souken Co and its competitors. This is 67% above median its historical median of 27.08. Over the past decade, Nippon Souken Co's Interest Coverage has ranged from 6.29 to 35.77. According to the industry distribution chart, Nippon Souken Co ranks #128 out of 352 companies in the Insurance industry, placing it in the top 36.4%.
Is Nippon Souken Co's Interest Coverage too high?
Nippon Souken Co's current Interest Coverage of 45.19 is 67% above median its 10-year median of 27.08. Over the past 10 years, this metric has ranged from a low of 6.29 to a high of 35.77. The Insurance industry median Interest Coverage is 16.25. Nippon Souken Co's value of 45.19 is 178.2% above this industry median. Based on the distribution chart, Nippon Souken Co ranks #128 out of 352 companies in the Insurance industry, which is above the industry midpoint. Overall, Nippon Souken Co has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Nippon Souken Co's Interest Coverage compare to MRSH and AON?
According to the Insurance industry distribution chart, Nippon Souken Co ranks #128 out of 352 companies for Interest Coverage. This puts Nippon Souken Co in the upper half of its industry. The industry median Interest Coverage is 16.25. Nippon Souken Co's value of 45.19 is 178.2% above this benchmark. Historically, Nippon Souken Co's own Interest Coverage has ranged from 6.29 to 35.77 over the past decade. While the company's 10-year median is 27.08 vs. the industry median of 16.25, 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 Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.25, based on 352 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Souken Co's current Interest Coverage of 45.19 is 178.2% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Souken Co and its competitors. For the Insurance industry, the median Interest Coverage is 16.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Souken Co's current Interest Coverage is 45.19, which is 67% above median its own 10-year median of 27.08. 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?
Nippon Souken Co (TSE:5840) has a current Interest Coverage of 45.19. The current Interest Coverage is 45.19, which is 67% above median its 10-year median of 27.08 and 178.2% above the Insurance industry median of 16.25. Nippon Souken Co's overall GF Score™ is 11/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Nippon Souken Co (TSE:5840), the current Interest Coverage is 45.19 as of Nov. 2025. 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.
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.
11GF Score
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