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Nippon Souken CoTSE:5840 57 Pretax Margin % is 3.19% as of May. 2026, which is 53% below its 10-year median of 6.79. GuruFocus rates TSE:5840 with a GF Score™ of 57/100 and a GF Value™ of 円604.50 (Modestly Undervalued). Among 501 Insurance companies, Nippon Souken Co ranks worse than 59.48% on this metric.
Nippon Souken Co (TSE:5840) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Nippon Souken Co Pretax Margin % Related Terms
Nippon Souken Co Pretax Margin % Historical Data
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The historical data trend for Nippon Souken Co's Pretax Margin % 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: Pretax Margin % Comparison
For the Insurance Brokers subindustry, Nippon Souken Co's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Nippon Souken Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Nippon Souken Co's Pretax Margin % 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.
Nippon Souken Co (TSE:5840) has a Pretax Margin % of 3.19% as of May. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Nippon Souken Co and its competitors. This is 53% below median its historical median of 6.79. According to the industry distribution chart, Nippon Souken Co ranks #298 out of 501 companies in the Insurance industry, placing it in the top 59.5%.
Is Nippon Souken Co's Pretax Margin % too high?
Nippon Souken Co's current Pretax Margin % of 3.19% is 53% below median its 10-year median of 6.79. The Insurance industry median Pretax Margin % is 11.90. Nippon Souken Co's value of 3.19% is 73.2% below this industry median. Based on the distribution chart, Nippon Souken Co ranks #298 out of 501 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 Pretax Margin % compare to MRSH and AON?
According to the Insurance industry distribution chart, Nippon Souken Co ranks #298 out of 501 companies for Pretax Margin %. This places Nippon Souken Co in the lower half of its industry. The industry median Pretax Margin % is 11.90. Nippon Souken Co's value of 3.19% is 73.2% below this benchmark. While the company's 10-year median is 6.79 vs. the industry median of 11.90, Nippon Souken Co has consistently been below 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 Pretax Margin % for an Insurance company?
The median Pretax Margin % among Insurance companies is 11.90, based on 501 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Souken Co's current Pretax Margin % of 3.19% is 73.2% below 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Nippon Souken Co and its competitors. For the Insurance industry, the median Pretax Margin % is 11.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Souken Co's current Pretax Margin % is 3.19%, which is 53% below median its own 10-year median of 6.79. 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604.50, compared to a current price of 円505.00 — trading 16.5% below its estimated fair value. The current Pretax Margin % is 3.19%, which is 53% below median its 10-year median of 6.79 and 73.2% below the Insurance industry median of 11.90. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Nippon Souken Co (TSE:5840), the current Pretax Margin % is 3.19% 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 16.5% below its estimated GF Value™ of 円604.50.
GuruFocus considers Nippon Souken Co to be Modestly Undervalued.
Key valuation signals for TSE:5840:
Pretax Margin %: 3.19% (53% below median its 10-year median of 6.79)
GF Value™: 円604.50 vs. price of 円505.00 (16.5% below fair value)
Industry Position: 73.2% below the Insurance median (#298 of 501)
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
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