Nippon Souken Co (TSE:5840) Asset Turnover: 0.63 (As of May. 2026)

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TSE:5840 Nippon Souken Co Ltd TSE:5840
52 GF Score
Price 円505.00
GF Value 円607.25
Valuation Modestly Undervalued
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What is Nippon Souken Co Asset Turnover?

Nippon Souken Co TSE:5840 52 Asset Turnover is 0.63 as of May. 2026. GuruFocus rates TSE:5840 with a GF Score™ of 52/100 and a GF Value™ of 円607.25 (Modestly Undervalued).

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Nippon Souken Co's Revenue for the six months ended in May. 2026 was 円305.5 Mil. Nippon Souken Co's Total Assets for the quarter that ended in May. 2026 was 円484.8 Mil. Therefore, Nippon Souken Co's Asset Turnover for the quarter that ended in May. 2026 was 0.63.

Asset Turnover is linked to ROE % through Du Pont Formula. Nippon Souken Co's annualized ROE % for the quarter that ended in May. 2026 was 7.60%. It is also linked to ROA % through Du Pont Formula. Nippon Souken Co's annualized ROA % for the quarter that ended in May. 2026 was 2.40%.


Nippon Souken Co  (TSE:5840) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Nippon Souken Co's annulized ROE % for the quarter that ended in May. 2026 is

ROE %**(Q: May. 2026 )
=Net Income/Total Stockholders Equity
=11.65/153.362
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(11.65 / 610.956)*(610.956 / 484.7925)*(484.7925/ 153.362)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.91 %*1.2602*3.1611
=ROA %*Equity Multiplier
=2.40 %*3.1611
=7.60 %

Note: The Net Income data used here is two times the semi-annual (May. 2026) net income data. The Revenue data used here is two times the semi-annual (May. 2026) revenue data.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Nippon Souken Co's annulized ROA % for the quarter that ended in May. 2026 is

ROA %(Q: May. 2026 )
=Net Income/Total Assets
=11.65/484.7925
=(Net Income / Revenue)*(Revenue / Total Assets)
=(11.65 / 610.956)*(610.956 / 484.7925)
=Net Margin %*Asset Turnover
=1.91 %*1.2602
=2.40 %

Note: The Net Income data used here is two times the semi-annual (May. 2026) net income data. The Revenue data used here is two times the semi-annual (May. 2026) revenue data.

* 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

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


Nippon Souken Co Asset Turnover Related Terms


Nippon Souken Co Asset Turnover Historical Data

* Premium members only.

The historical data trend for Nippon Souken Co's Asset Turnover 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.

Nippon Souken Co Asset Turnover Chart

Nippon Souken Co Annual Data
Trend Nov21 Nov22 Nov23 Nov24 Nov25
Asset Turnover
1.01 1.08 1.19 1.34 1.30

Nippon Souken Co Semi-Annual Data
Nov21 Nov22 May23 Nov23 May24 Nov24 May25 Nov25 May26
Asset Turnover Get a 7-Day Free Trial Premium Member Only 0.71 0.75 0.63 0.73 0.63

TSE:5840 vs MRSH, AON, AJG: Asset Turnover Comparison

For the Insurance Brokers subindustry, Nippon Souken Co's Asset Turnover, along with its competitors' market caps and Asset Turnover 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 Asset Turnover vs Insurance Industry

For the Insurance industry and Financial Services sector, Nippon Souken Co's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Nippon Souken Co's Asset Turnover falls into.


TSE:5840
52GF Score
Nippon Souken Co Ltd TSE:5840
Asset Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Nippon Souken Co Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Nippon Souken Co's Asset Turnover for the fiscal year that ended in Nov. 2025 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Nov. 2025 )/( (Total Assets (A: Nov. 2024 )+Total Assets (A: Nov. 2025 ))/ count )
=585.225/( (451.862+446.928)/ 2 )
=585.225/449.395
=1.30

Nippon Souken Co's Asset Turnover for the quarter that ended in May. 2026 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: May. 2026 )/( (Total Assets (Q: Nov. 2025 )+Total Assets (Q: May. 2026 ))/ count )
=305.478/( (446.928+522.657)/ 2 )
=305.478/484.7925
=0.63

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

Frequently Asked Questions Learn more about Asset Turnover →
What does a Asset Turnover of 0.63 mean?
Nippon Souken Co (TSE:5840) has a Asset Turnover of 0.63 as of May. 2026. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Nippon Souken Co and its competitors.
Is Nippon Souken Co's Asset Turnover too high?
Nippon Souken Co's current Asset Turnover is 0.63. Overall, Nippon Souken Co has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Souken Co's Asset Turnover compare to MRSH and AON?
Nippon Souken Co's Asset Turnover of 0.63 can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Asset Turnover for an Insurance company?
A good Asset Turnover depends on the Insurance industry context. However, Asset Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Asset Turnover mean?
A high Asset Turnover can signal that a stock is expensive relative to its fundamentals. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Nippon Souken Co and its competitors. Nippon Souken Co's current Asset Turnover is 0.63. 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607.25, compared to a current price of 円505.00 — trading 16.8% below its estimated fair value. The current Asset Turnover is 0.63. Nippon Souken Co's overall GF Score™ is 52/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Asset Turnover calculated?
Asset Turnover is calculated from a company's financial statements. For Nippon Souken Co (TSE:5840), the current Asset Turnover is 0.63 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 16.8% below its estimated GF Value™ of 円607.25. GuruFocus considers Nippon Souken Co to be Modestly Undervalued.

Key valuation signals for TSE:5840:

  • Asset Turnover: 0.63
  • GF Value™: 円607.25 vs. price of 円505.00 (16.8% below fair value)
  • GF Score™: 52/100

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 Business Description

Address 2-1 Sunport, Takamatsu Symbol Tower 9th floor, Kagawa Prefecture, Takamatsu, JPN, 760-0019
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.
52GF Score

Get the complete analysis for TSE:5840

Asset Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円505.00
Price
円607.25
GF Value