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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Nippon Souken Co's 3-Year RORE % for the quarter that ended in May. 2026 was 17.41%.
The industry rank for Nippon Souken Co's 3-Year RORE % or its related term are showing as below:
TSE:5840's 3-Year RORE % is ranked better than 58.39% of 471
companies
in the Insurance industry
Industry Median: 11.68
vs TSE:5840: 17.41
Nippon Souken Co (TSE:5840) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Nippon Souken Co 3-Year RORE % Related Terms
Nippon Souken Co 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Nippon Souken Co's 3-Year RORE % 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 RORE % Comparison
For the Insurance Brokers subindustry, Nippon Souken Co's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Nippon Souken Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Nippon Souken Co's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in May. 2026 and 3-year before.
Nippon Souken Co (TSE:5840) has a 3-Year RORE % of 17.41 as of May. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Nippon Souken Co and its competitors. According to the industry distribution chart, Nippon Souken Co ranks #196 out of 471 companies in the Insurance industry, placing it in the top 41.6%.
Is Nippon Souken Co's 3-Year RORE % too high?
Nippon Souken Co's current 3-Year RORE % is 17.41. The Insurance industry median 3-Year RORE % is 11.68. Nippon Souken Co's value of 17.41 is 49.1% above this industry median. Based on the distribution chart, Nippon Souken Co ranks #196 out of 471 companies in the Insurance industry, which is above the industry midpoint. Overall, Nippon Souken Co has a GF Score™ of 34/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Souken Co's 3-Year RORE % compare to MRSH and AON?
According to the Insurance industry distribution chart, Nippon Souken Co ranks #196 out of 471 companies for 3-Year RORE %. This puts Nippon Souken Co in the upper half of its industry. The industry median 3-Year RORE % is 11.68. Nippon Souken Co's value of 17.41 is 49.1% 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 3-Year RORE % for an Insurance company?
The median 3-Year RORE % among Insurance companies is 11.68, based on 471 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Souken Co's current 3-Year RORE % of 17.41 is 49.1% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Nippon Souken Co and its competitors. For the Insurance industry, the median 3-Year RORE % is 11.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Souken Co's current 3-Year RORE % is 17.41. 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597.61, compared to a current price of 円505.00 — trading 15.5% below its estimated fair value. The current 3-Year RORE % is 17.41 and 49.1% above the Insurance industry median of 11.68. Nippon Souken 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Nippon Souken Co (TSE:5840), the current 3-Year RORE % is 17.41 as of May. 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 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 15.5% below its estimated GF Value™ of 円597.61.
GuruFocus considers Nippon Souken Co to be Modestly Undervalued.
Key valuation signals for TSE:5840:
3-Year RORE %: 17.41
GF Value™: 円597.61 vs. price of 円505.00 (15.5% below fair value)
Industry Position: 49.1% above the Insurance median (#196 of 471)
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.
34GF Score
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