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Nippon Souken CoTSE:5840 35 3-Year ROIIC % is 32.66 as of Nov. 2025, which is 60% below its 10-year median of 81.77. GuruFocus rates TSE:5840 with a GF Score™ of 35/100 and a GF Value™ of 円598.71 (Modestly Undervalued). Among 338 Insurance companies, Nippon Souken Co ranks better than 86.98% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Nippon Souken Co's 3-Year ROIIC % for the quarter that ended in Nov. 2025 was 32.66%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Nippon Souken Co's 3-Year ROIIC % or its related term are showing as below:
TSE:5840's 3-Year ROIIC % is ranked better than 86.98% of 338
companies
in the Insurance industry
Industry Median: 5.09
vs TSE:5840: 32.66
Nippon Souken Co (TSE:5840) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Nippon Souken Co 3-Year ROIIC % Related Terms
Nippon Souken Co 3-Year ROIIC % Historical Data
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The historical data trend for Nippon Souken Co's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Insurance Brokers subindustry, Nippon Souken Co's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, Nippon Souken Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Nippon Souken Co's 3-Year ROIIC % falls into.
Nippon Souken Co's 3-Year ROIIC % for the quarter that ended in Nov. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 49.258356 (Nov. 2025) - 25.38 (Nov. 2022) )
/
( 246.97125 (Nov. 2025) - 173.8538 (Nov. 2022) )
=
23.878356
/
73.11745
=
32.66%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Nippon Souken Co (TSE:5840) has a 3-Year ROIIC % of 32.66 as of Nov. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Nippon Souken Co and its competitors. This is 60% below median its historical median of 81.77. Over the past decade, Nippon Souken Co's 3-Year ROIIC % has ranged from 32.66 to 130.88. According to the industry distribution chart, Nippon Souken Co ranks #44 out of 338 companies in the Insurance industry, placing it in the top 13%.
Is Nippon Souken Co's 3-Year ROIIC % too high?
Nippon Souken Co's current 3-Year ROIIC % of 32.66 is 60% below median its 10-year median of 81.77. Over the past 10 years, this metric has ranged from a low of 32.66 to a high of 130.88. The Insurance industry median 3-Year ROIIC % is 5.09. Nippon Souken Co's value of 32.66 is 541.7% above this industry median. Based on the distribution chart, Nippon Souken Co ranks #44 out of 338 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 35/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Souken Co's 3-Year ROIIC % compare to MRSH and AON?
According to the Insurance industry distribution chart, Nippon Souken Co ranks #44 out of 338 companies for 3-Year ROIIC %. This places Nippon Souken Co in the top 13% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 5.09. Nippon Souken Co's value of 32.66 is 541.7% above this benchmark. Historically, Nippon Souken Co's own 3-Year ROIIC % has ranged from 32.66 to 130.88 over the past decade. While the company's 10-year median is 81.77 vs. the industry median of 5.09, 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 3-Year ROIIC % for an Insurance company?
The median 3-Year ROIIC % among Insurance companies is 5.09, based on 338 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Souken Co's current 3-Year ROIIC % of 32.66 is 541.7% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Nippon Souken Co and its competitors. For the Insurance industry, the median 3-Year ROIIC % is 5.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Souken Co's current 3-Year ROIIC % is 32.66, which is 60% below median its own 10-year median of 81.77. 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598.71, compared to a current price of 円505.00 — trading 15.7% below its estimated fair value. The current 3-Year ROIIC % is 32.66, which is 60% below median its 10-year median of 81.77 and 541.7% above the Insurance industry median of 5.09. Nippon Souken Co's overall GF Score™ is 35/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Nippon Souken Co (TSE:5840), the current 3-Year ROIIC % is 32.66 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.
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 15.7% below its estimated GF Value™ of 円598.71.
GuruFocus considers Nippon Souken Co to be Modestly Undervalued.
Key valuation signals for TSE:5840:
3-Year ROIIC %: 32.66 (60% below median its 10-year median of 81.77)
GF Value™: 円598.71 vs. price of 円505.00 (15.7% below fair value)
Industry Position: 541.7% above the Insurance median (#44 of 338)
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.
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