Muromachi Chemicals (TSE:4885) Earnings Yield (Joel Greenblatt) %: 8.75% (As of May. 2026) — Near Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:4885 Muromachi Chemicals Inc TSE:4885
73 GF Score
Price 円871.00
GF Value 円994.32
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Muromachi Chemicals Earnings Yield (Joel Greenblatt) %?

Muromachi Chemicals TSE:4885 -1.47% 73 Earnings Yield (Joel Greenblatt) % is 8.75% as of May. 2026, which is 8% below its 10-year median of 9.51. GuruFocus rates TSE:4885 with a GF Score™ of 73/100 and a GF Value™ of 円994.32 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,641 Chemicals companies, Muromachi Chemicals ranks better than 77.94% on this metric.

Muromachi Chemicals's Enterprise Value for the quarter that ended in May. 2026 was 円4,271 Mil. Muromachi Chemicals's EBIT for the trailing twelve months (TTM) ended in May. 2026 was 円374 Mil. Muromachi Chemicals's Earnings Yield (Joel Greenblatt) for the quarter that ended in May. 2026 was 8.75%.

The historical rank and industry rank for Muromachi Chemicals's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

TSE:4885' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.95   Med: 9.51   Max: 15.86
Current: 10.19

During the past 8 years, the highest Earnings Yield (Joel Greenblatt) of Muromachi Chemicals was 15.86%. The lowest was 1.95%. And the median was 9.51%.

TSE:4885's Earnings Yield (Joel Greenblatt) % is ranked better than
77.94% of 1641 companies
in the Chemicals industry
Industry Median: 4.34 vs TSE:4885: 10.19

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Muromachi Chemicals's Forward Rate of Return (Yacktman) % for the quarter that ended in May. 2026 was 11.77%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Muromachi Chemicals  (TSE:4885) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Muromachi Chemicals Earnings Yield (Joel Greenblatt) % Related Terms


Muromachi Chemicals Earnings Yield (Joel Greenblatt) % Historical Data

* Premium members only.

The historical data trend for Muromachi Chemicals's Earnings Yield (Joel Greenblatt) % 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.

Muromachi Chemicals Earnings Yield (Joel Greenblatt) % Chart

Muromachi Chemicals Annual Data
Trend May19 May20 May21 May22 May23 May24 May25 May26
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial 11.15 10.03 15.80 9.26 8.75

Muromachi Chemicals Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.26 7.61 15.80 9.52 8.75

TSE:4885 vs DOW: Earnings Yield (Joel Greenblatt) % Comparison

For the Chemicals subindustry, Muromachi Chemicals's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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.


Muromachi Chemicals Earnings Yield (Joel Greenblatt) % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Muromachi Chemicals's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Muromachi Chemicals's Earnings Yield (Joel Greenblatt) % falls into.


TSE:4885
73GF Score
Muromachi Chemicals Inc TSE:4885
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Muromachi Chemicals Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Muromachi Chemicalss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in May. 2026 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=373.567/4271.333
=8.75 %

Muromachi Chemicals's EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円374 Mil.


What does a Earnings Yield (Joel Greenblatt) % of 8.75% mean?
Muromachi Chemicals (TSE:4885) has a Earnings Yield (Joel Greenblatt) % of 8.75% as of May. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Muromachi Chemicals and its competitors. This is near median its historical median of 9.51. Over the past decade, Muromachi Chemicals' Earnings Yield (Joel Greenblatt) % has ranged from 1.95 to 15.86. According to the industry distribution chart, Muromachi Chemicals ranks #362 out of 1641 companies in the Chemicals industry, placing it in the top 22.1%.
Is Muromachi Chemicals' Earnings Yield (Joel Greenblatt) % too high?
Muromachi Chemicals' current Earnings Yield (Joel Greenblatt) % of 8.75% is near median its 10-year median of 9.51. Over the past 10 years, this metric has ranged from a low of 1.95 to a high of 15.86. The Chemicals industry median Earnings Yield (Joel Greenblatt) % is 4.34. Muromachi Chemicals' value of 8.75% is 101.6% above this industry median. Based on the distribution chart, Muromachi Chemicals ranks #362 out of 1641 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Muromachi Chemicals has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Muromachi Chemicals' Earnings Yield (Joel Greenblatt) % compare to DOW?
According to the Chemicals industry distribution chart, Muromachi Chemicals ranks #362 out of 1641 companies for Earnings Yield (Joel Greenblatt) %. This places Muromachi Chemicals in the top 22% of its industry — outperforming the majority of peers. The industry median Earnings Yield (Joel Greenblatt) % is 4.34. Muromachi Chemicals' value of 8.75% is 101.6% above this benchmark. Historically, Muromachi Chemicals' own Earnings Yield (Joel Greenblatt) % has ranged from 1.95 to 15.86 over the past decade. While the company's 10-year median is 9.51 vs. the industry median of 4.34, Muromachi Chemicals 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 Earnings Yield (Joel Greenblatt) % for a Chemicals company?
The median Earnings Yield (Joel Greenblatt) % among Chemicals companies is 4.34, based on 1,641 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Muromachi Chemicals's current Earnings Yield (Joel Greenblatt) % of 8.75% is 101.6% 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Muromachi Chemicals and its competitors. For the Chemicals industry, the median Earnings Yield (Joel Greenblatt) % is 4.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muromachi Chemicals's current Earnings Yield (Joel Greenblatt) % is 8.75%, which is near median its own 10-year median of 9.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muromachi Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Muromachi Chemicals (TSE:4885) is currently considered Modestly Undervalued. The stock's GF Value™ is 円994.32, compared to a current price of 円871.00 — trading 12.4% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 8.75%, which is near median its 10-year median of 9.51 and 101.6% above the Chemicals industry median of 4.34. Muromachi Chemicals' overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Muromachi Chemicals (TSE:4885), the current Earnings Yield (Joel Greenblatt) % is 8.75% 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 Muromachi Chemicals (TSE:4885) Overvalued in 2026?

Based on GuruFocus' analysis, Muromachi Chemicals stock appears to be undervalued. The current stock price of 円871.00 is trading 12.4% below its estimated GF Value™ of 円994.32. GuruFocus considers Muromachi Chemicals to be Modestly Undervalued.

Key valuation signals for TSE:4885:

  • Earnings Yield (Joel Greenblatt) %: 8.75% (near median its 10-year median of 9.51)
  • GF Value™: 円994.32 vs. price of 円871.00 (12.4% below fair value)
  • GF Score™: 73/100 with 2 warning signs
  • Industry Position: 101.6% above the Chemicals median (#362 of 1641)

No single metric tells the full story. See the TSE:4885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Muromachi Chemicals Business Description

Address 38-5 Shinshotachicho 1-chome, Omuta, Fukuoka, JPN, 836-0895
Muromachi Chemicals Inc is engaged in the production and distribution of pharmaceuticals, planning, production, and distribution of health foods, and distribution and processing of ion-exchange resin products. The Company has three reportable segments based on business type: Pharmaceuticals Business, Health Food Business, and Chemicals Business.
73GF Score

Get the complete analysis for TSE:4885

Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円871.00
Price
円994.32
GF Value