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National Life Insurance Co. (XNEP:NLICL) 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 four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) 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.
* 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 - Life subindustry, National Life Insurance 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.
National Life Insurance Co. ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, National Life Insurance Co.'s ROE % distribution charts can be found below:
* The bar in red indicates where National Life Insurance 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 four times the quarterly (Apr. 2026) net income data.
ROE % is displayed in the 30-year financial page.
National Life Insurance Co. (XNEP:NLICL) has a ROE % of 6.59% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on National Life Insurance Co. and its competitors. This is 182% above median its historical median of 2.34. Over the past decade, National Life Insurance Co.'s ROE % has ranged from 1.29 to 14.96. According to the industry distribution chart, National Life Insurance Co. ranks #364 out of 501 companies in the Insurance industry, placing it in the top 72.7%.
Is National Life Insurance Co.'s ROE % too high?
National Life Insurance Co.'s current ROE % of 6.59% is 182% above median its 10-year median of 2.34. Over the past 10 years, this metric has ranged from a low of 1.29 to a high of 14.96. The Insurance industry median ROE % is 11.77. National Life Insurance Co.'s value of 6.59% is 44% below this industry median. Based on the distribution chart, National Life Insurance Co. ranks #364 out of 501 companies in the Insurance industry, which is below the industry midpoint. Overall, National Life Insurance Co. has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does National Life Insurance Co.'s ROE % compare to AFL and MET?
According to the Insurance industry distribution chart, National Life Insurance Co. ranks #364 out of 501 companies for ROE %. This places National Life Insurance Co. in the lower half of its industry. The industry median ROE % is 11.77. National Life Insurance Co.'s value of 6.59% is 44% below this benchmark. Historically, National Life Insurance Co.'s own ROE % has ranged from 1.29 to 14.96 over the past decade. While the company's 10-year median is 2.34 vs. the industry median of 11.77, National Life Insurance 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 ROE % for an Insurance company?
The median ROE % among Insurance companies is 11.77, based on 501 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. National Life Insurance Co.'s current ROE % of 6.59% is 44% 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 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 National Life Insurance Co. and its competitors. For the Insurance industry, the median ROE % is 11.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Life Insurance Co.'s current ROE % is 6.59%, which is 182% above median its own 10-year median of 2.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Life Insurance Co. stock overvalued right now?
Based on GuruFocus' analysis, National Life Insurance Co. (XNEP:NLICL) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR630.77, compared to a current price of NPR562.00 — trading 10.9% below its estimated fair value. The current ROE % is 6.59%, which is 182% above median its 10-year median of 2.34 and 44% below the Insurance industry median of 11.77. National Life Insurance Co.'s overall GF Score™ is 98/100 with 5 warning signs to review. 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 National Life Insurance Co. (XNEP:NLICL), the current ROE % is 6.59% as of Apr. 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 National Life Insurance Co. (XNEP:NLICL) Overvalued in 2026?
Based on GuruFocus' analysis, National Life Insurance Co. stock appears to be undervalued.
The current stock price of NPR562.00 is trading 10.9% below its estimated GF Value™ of NPR630.77.
GuruFocus considers National Life Insurance Co. to be Modestly Undervalued.
Key valuation signals for XNEP:NLICL:
ROE %: 6.59% (182% above median its 10-year median of 2.34)
GF Value™: NPR630.77 vs. price of NPR562.00 (10.9% below fair value)
Industry Position: 44% below the Insurance median (#364 of 501)
No single metric tells the full story. See the XNEP:NLICL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
National Life Insurance Co. Ltd is engaged in the life insurance business, providing various life insurance products including participating and non-participating products through its province offices, branches, sub-branches, and network of agents. The company's offerings include individual plans, which consist of Endowment Assurance Plan, Childrens Plans, Money Back Plans, Whole Life Plans, Terms Assurance Plans, Retirement Plan and Single Premium Plan. The operating segments of the company include Endowment, Anticipated Endowment, Endowment Cum Whole Life, Foreign Employment Term, and Special Term. The company's main source of revenue is Premium Income, with the majority generated from endowment plans.
98GF Score
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