Nippon Souken CoTSE:5840 12 ROE % is 54.37% as of Nov. 2025, which is 55% above its 10-year median of 34.98. GuruFocus rates TSE:5840 with a GF Score™ of 12/100. Among 507 Insurance companies, Nippon Souken Co ranks better than 93.89% on this metric.
The historical rank and industry rank for Nippon Souken Co's ROE % or its related term are showing as below:
TSE:5840'
s ROE % Range Over the Past 10 Years
Min: -49.16 Med: 34.98 Max: 53.93
Current: 36.61
During the past 5 years, Nippon Souken Co's highest ROE % was 53.93%. The lowest was -49.16%. And the median was 34.98%.
TSE:5840's ROE % is ranked better than 93.89% of 507
companies
in the Insurance industry
Industry Median: 11.69
vs TSE:5840: 36.61
Nippon Souken Co (TSE:5840) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Nippon Souken Co ROE % Related Terms
Nippon Souken Co ROE % Historical Data
* Premium members only.
The historical data trend for Nippon Souken Co's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Nippon Souken Co's ROE % distribution charts can be found below:
* The bar in red indicates where Nippon Souken Co's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Nippon Souken Co (TSE:5840) has a ROE % of 54.37% as of Nov. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Nippon Souken Co and its competitors. This is 55% above median its historical median of 34.98. According to the industry distribution chart, Nippon Souken Co ranks #31 out of 507 companies in the Insurance industry, placing it in the top 6.1%.
Is Nippon Souken Co's ROE % too high?
Nippon Souken Co's current ROE % of 54.37% is 55% above median its 10-year median of 34.98. The Insurance industry median ROE % is 11.69. Nippon Souken Co's value of 54.37% is 365.1% above this industry median. Based on the distribution chart, Nippon Souken Co ranks #31 out of 507 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 12/100, reflecting its overall financial health beyond just this single metric.
How does Nippon Souken Co's ROE % compare to MRSH and AON?
According to the Insurance industry distribution chart, Nippon Souken Co ranks #31 out of 507 companies for ROE %. This places Nippon Souken Co in the top 6% of its industry — outperforming the majority of peers. The industry median ROE % is 11.69. Nippon Souken Co's value of 54.37% is 365.1% above this benchmark. While the company's 10-year median is 34.98 vs. the industry median of 11.69, 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 ROE % for an Insurance company?
The median ROE % among Insurance companies is 11.69, based on 507 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Souken Co's current ROE % of 54.37% is 365.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Nippon Souken Co and its competitors. For the Insurance industry, the median ROE % is 11.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Souken Co's current ROE % is 54.37%, which is 55% above median its own 10-year median of 34.98. 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 ROE % of 54.37%. The current ROE % is 54.37%, which is 55% above median its 10-year median of 34.98 and 365.1% above the Insurance industry median of 11.69. Nippon Souken Co's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Nippon Souken Co (TSE:5840), the current ROE % is 54.37% 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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