Nippon Souken CoTSE:5840 11 ROA % is 17.37% as of Nov. 2025, which is 127% above its 10-year median of 7.65. GuruFocus rates TSE:5840 with a GF Score™ of 11/100. Among 509 Insurance companies, Nippon Souken Co ranks better than 94.7% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nippon Souken Co's annualizedNet Income for the quarter that ended in Nov. 2025 was 円74.4 Mil.
Nippon Souken Co's average Total Assets over the quarter that ended in Nov. 2025 was 円428.4 Mil. Therefore, Nippon Souken Co's annualized ROA % for the quarter that ended in Nov. 2025 was 17.37%.
The historical rank and industry rank for Nippon Souken Co's ROA % or its related term are showing as below:
TSE:5840'
s ROA % Range Over the Past 10 Years
Min: -5.73 Med: 7.65 Max: 12.34
Current: 10.95
During the past 5 years, Nippon Souken Co's highest ROA % was 12.34%. The lowest was -5.73%. And the median was 7.65%.
TSE:5840's ROA % is ranked better than 94.7% of 509
companies
in the Insurance industry
Industry Median: 2.62
vs TSE:5840: 10.95
Nippon Souken Co (TSE:5840) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Nov. 2025) net income data. The Revenue data used here is two times the semi-annual (Nov. 2025) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Nippon Souken Co ROA % Related Terms
Nippon Souken Co ROA % Historical Data
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The historical data trend for Nippon Souken Co's ROA % 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.
For the Insurance Brokers subindustry, Nippon Souken Co's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Insurance Industry
For the Insurance industry and Financial Services sector, Nippon Souken Co's ROA % distribution charts can be found below:
* The bar in red indicates where Nippon Souken Co's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Nov. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Nippon Souken Co (TSE:5840) has a ROA % of 17.37% as of Nov. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Nippon Souken Co and its competitors. This is 127% above median its historical median of 7.65. According to the industry distribution chart, Nippon Souken Co ranks #27 out of 509 companies in the Insurance industry, placing it in the top 5.3%.
Is Nippon Souken Co's ROA % too high?
Nippon Souken Co's current ROA % of 17.37% is 127% above median its 10-year median of 7.65. The Insurance industry median ROA % is 2.62. Nippon Souken Co's value of 17.37% is 563% above this industry median. Based on the distribution chart, Nippon Souken Co ranks #27 out of 509 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 11/100, reflecting its overall financial health beyond just this single metric.
How does Nippon Souken Co's ROA % compare to MRSH and AON?
According to the Insurance industry distribution chart, Nippon Souken Co ranks #27 out of 509 companies for ROA %. This places Nippon Souken Co in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 2.62. Nippon Souken Co's value of 17.37% is 563% above this benchmark. While the company's 10-year median is 7.65 vs. the industry median of 2.62, 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 ROA % for an Insurance company?
The median ROA % among Insurance companies is 2.62, based on 509 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Souken Co's current ROA % of 17.37% is 563% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Nippon Souken Co and its competitors. For the Insurance industry, the median ROA % is 2.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Souken Co's current ROA % is 17.37%, which is 127% above median its own 10-year median of 7.65. 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 ROA % of 17.37%. The current ROA % is 17.37%, which is 127% above median its 10-year median of 7.65 and 563% above the Insurance industry median of 2.62. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Nippon Souken Co (TSE:5840), the current ROA % is 17.37% 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.
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