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Nippon Souken CoTSE:5840 34 Return-on-Tangible-Equity is 7.88% as of May. 2026, which is 78% below its 10-year median of 36.39. GuruFocus rates TSE:5840 with a GF Score™ of 34/100 and a GF Value™ of 円596.23 (Modestly Undervalued). Among 497 Insurance companies, Nippon Souken Co ranks better than 84.1% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Nippon Souken Co's annualized net income for the quarter that ended in May. 2026 was 円11.7 Mil. Nippon Souken Co's average shareholder tangible equity for the quarter that ended in May. 2026 was 円147.8 Mil. Therefore, Nippon Souken Co's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2026 was 7.88%.
The historical rank and industry rank for Nippon Souken Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:5840'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -79.95 Med: 36.39 Max: 73.37
Current: 31.49
During the past 5 years, Nippon Souken Co's highest Return-on-Tangible-Equity was 73.37%. The lowest was -79.95%. And the median was 36.39%.
TSE:5840's Return-on-Tangible-Equity is ranked better than 84.1% of 497
companies
in the Insurance industry
Industry Median: 13.5
vs TSE:5840: 31.49
Nippon Souken Co (TSE:5840) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Nippon Souken Co Return-on-Tangible-Equity Related Terms
Nippon Souken Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nippon Souken Co's Return-on-Tangible-Equity 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-Equity Comparison
For the Insurance Brokers subindustry, Nippon Souken Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Nippon Souken Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nippon Souken Co's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.88% mean?
Nippon Souken Co (TSE:5840) has a Return-on-Tangible-Equity of 7.88% as of May. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Nippon Souken Co and its competitors. This is 78% below median its historical median of 36.39. According to the industry distribution chart, Nippon Souken Co ranks #79 out of 497 companies in the Insurance industry, placing it in the top 15.9%.
Is Nippon Souken Co's Return-on-Tangible-Equity too high?
Nippon Souken Co's current Return-on-Tangible-Equity of 7.88% is 78% below median its 10-year median of 36.39. The Insurance industry median Return-on-Tangible-Equity is 13.50. Nippon Souken Co's value of 7.88% is 41.6% below this industry median. Based on the distribution chart, Nippon Souken Co ranks #79 out of 497 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 34/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Souken Co's Return-on-Tangible-Equity compare to MRSH and AON?
According to the Insurance industry distribution chart, Nippon Souken Co ranks #79 out of 497 companies for Return-on-Tangible-Equity. This places Nippon Souken Co in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 13.50. Nippon Souken Co's value of 7.88% is 41.6% below this benchmark. While the company's 10-year median is 36.39 vs. the industry median of 13.50, 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-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.50, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 7.88% is 41.6% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Nippon Souken Co and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.50 — 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-Equity is 7.88%, which is 78% below median its own 10-year median of 36.39. 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596.23, compared to a current price of 円505.00 — trading 15.3% below its estimated fair value. The current Return-on-Tangible-Equity is 7.88%, which is 78% below median its 10-year median of 36.39 and 41.6% below the Insurance industry median of 13.50. Nippon Souken Co's overall GF Score™ is 34/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Nippon Souken Co (TSE:5840), the current Return-on-Tangible-Equity is 7.88% 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 15.3% below its estimated GF Value™ of 円596.23.
GuruFocus considers Nippon Souken Co to be Modestly Undervalued.
Key valuation signals for TSE:5840:
Return-on-Tangible-Equity: 7.88% (78% below median its 10-year median of 36.39)
GF Value™: 円596.23 vs. price of 円505.00 (15.3% below fair value)
Industry Position: 41.6% below the Insurance median (#79 of 497)
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.
34GF Score
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