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Nippon Souken CoTSE:5840 57 Return-on-Tangible-Asset is 2.43% as of May. 2026, which is 69% below its 10-year median of 7.95. GuruFocus rates TSE:5840 with a GF Score™ of 57/100 and a GF Value™ of 円600.64 (Modestly Undervalued). Among 505 Insurance companies, Nippon Souken Co ranks better than 90.1% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Nippon Souken Co's annualizedNet Income for the quarter that ended in May. 2026 was 円11.7 Mil. Nippon Souken Co's average total tangible assets for the quarter that ended in May. 2026 was 円479.2 Mil. Therefore, Nippon Souken Co's annualized Return-on-Tangible-Asset for the quarter that ended in May. 2026 was 2.43%.
The historical rank and industry rank for Nippon Souken Co's Return-on-Tangible-Asset or its related term are showing as below:
TSE:5840'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -6 Med: 7.95 Max: 12.54
Current: 9.46
During the past 5 years, Nippon Souken Co's highest Return-on-Tangible-Asset was 12.54%. The lowest was -6.00%. And the median was 7.95%.
TSE:5840's Return-on-Tangible-Asset is ranked better than 90.1% of 505
companies
in the Insurance industry
Industry Median: 2.88
vs TSE:5840: 9.46
Nippon Souken Co (TSE:5840) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Nippon Souken Co Return-on-Tangible-Asset Related Terms
Nippon Souken Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Nippon Souken Co's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Insurance Brokers subindustry, Nippon Souken Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Insurance Industry
For the Insurance industry and Financial Services sector, Nippon Souken Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Nippon Souken Co's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (May. 2026) net income data.
What does a Return-on-Tangible-Asset of 2.43% mean?
Nippon Souken Co (TSE:5840) has a Return-on-Tangible-Asset of 2.43% as of May. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Nippon Souken Co and its competitors. This is 69% below median its historical median of 7.95. According to the industry distribution chart, Nippon Souken Co ranks #50 out of 505 companies in the Insurance industry, placing it in the top 9.9%.
Is Nippon Souken Co's Return-on-Tangible-Asset too high?
Nippon Souken Co's current Return-on-Tangible-Asset of 2.43% is 69% below median its 10-year median of 7.95. The Insurance industry median Return-on-Tangible-Asset is 2.88. Nippon Souken Co's value of 2.43% is 15.6% below this industry median. Based on the distribution chart, Nippon Souken Co ranks #50 out of 505 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Asset compare to MRSH and AON?
According to the Insurance industry distribution chart, Nippon Souken Co ranks #50 out of 505 companies for Return-on-Tangible-Asset. This places Nippon Souken Co in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.88. Nippon Souken Co's value of 2.43% is 15.6% below this benchmark. While the company's 10-year median is 7.95 vs. the industry median of 2.88, 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 Return-on-Tangible-Asset for an Insurance company?
The median Return-on-Tangible-Asset among Insurance companies is 2.88, based on 505 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Souken Co's current Return-on-Tangible-Asset of 2.43% is 15.6% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Nippon Souken Co and its competitors. For the Insurance industry, the median Return-on-Tangible-Asset is 2.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Souken Co's current Return-on-Tangible-Asset is 2.43%, which is 69% below median its own 10-year median of 7.95. 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600.64, compared to a current price of 円505.00 — trading 15.9% below its estimated fair value. The current Return-on-Tangible-Asset is 2.43%, which is 69% below median its 10-year median of 7.95 and 15.6% below the Insurance industry median of 2.88. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Nippon Souken Co (TSE:5840), the current Return-on-Tangible-Asset is 2.43% 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 15.9% below its estimated GF Value™ of 円600.64.
GuruFocus considers Nippon Souken Co to be Modestly Undervalued.
Key valuation signals for TSE:5840:
Return-on-Tangible-Asset: 2.43% (69% below median its 10-year median of 7.95)
GF Value™: 円600.64 vs. price of 円505.00 (15.9% below fair value)
Industry Position: 15.6% below the Insurance median (#50 of 505)
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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