ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nippon Insure Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 40.67%.
As of today (2026-06-28), Nippon Insure Co's WACC % is 8.04%. Nippon Insure Co's ROC % is 28.43% (calculated using TTM income statement data).
Nippon Insure Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Nippon Insure Co (TSE:5843) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Nippon Insure Co's WACC % is 8.04%. Nippon Insure Co's ROC % is 28.43% (calculated using TTM income statement data).
Nippon Insure Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of 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.
Nippon Insure Co ROC % Related Terms
Nippon Insure Co ROC % Historical Data
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The historical data trend for Nippon Insure Co's ROC % 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:
The EBIT data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 Insure Co (TSE:5843) has a ROC % of 40.67% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nippon Insure Co and its competitors.
Is Nippon Insure Co's ROC % too high?
Nippon Insure Co's current ROC % is 40.67%. The Insurance industry median ROC % is 3.36. Nippon Insure Co's value of 40.67% is 1110.4% above this industry median. Overall, Nippon Insure Co has a GF Score™ of 34/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Insure Co's ROC % compare to BRK.A and AIG?
Nippon Insure Co's ROC % of 40.67% can be compared against companies in the Insurance industry. The industry median ROC % is 3.36. Nippon Insure Co's value of 40.67% is 1110.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Insurance company?
The median ROC % among Insurance companies is 3.36, based on 368 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Insure Co's current ROC % of 40.67% is 1110.4% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nippon Insure Co and its competitors. For the Insurance industry, the median ROC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Insure Co's current ROC % is 40.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Insure Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Insure Co (TSE:5843) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,533.27, compared to a current price of 円2,155.00 — trading 40.5% above its estimated fair value. The current ROC % is 40.67% and 1110.4% above the Insurance industry median of 3.36. Nippon Insure 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 ROC % calculated?
ROC % is calculated from a company's financial statements. For Nippon Insure Co (TSE:5843), the current ROC % is 40.67% as of Mar. 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 Insure Co (TSE:5843) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Insure Co stock appears to be overvalued.
The current stock price of 円2,155.00 is trading 40.5% above its estimated GF Value™ of 円1,533.27.
GuruFocus considers Nippon Insure Co to be Significantly Overvalued.
Key valuation signals for TSE:5843:
ROC %: 40.67%
GF Value™: 円1,533.27 vs. price of 円2,155.00 (40.5% above fair value)
Industry Position: 1110.4% above the Insurance median
No single metric tells the full story. See the TSE:5843 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Insure Co Ltd is a guarantee company based in Fukuoka that has expanded not only to the real estate industry but also to the nursing care and medical fields. The company provides rent liability guarantees, nursing care debt guarantees, hospitalization fee liability guarantees, fitness businesses, and laundry businesses.
34GF Score
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