Sumitomo Realty & Development Co (FRA:RL2) ROCE %: 3.85% (As of Mar. 2026)


FRA:RL2 Sumitomo Realty & Development Co Ltd FRA:RL2
78 GF Score
Price €18.80
GF Value €14.80
Valuation Modestly Overvalued
! 3 Warning Signs
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What is Sumitomo Realty & Development Co ROCE %?

Sumitomo Realty & Development Co FRA:RL2 +1.08% 78 ROCE % is 3.85% as of Mar. 2026. GuruFocus rates FRA:RL2 with a GF Score™ of 78/100 and a GF Value™ of €14.80 (Modestly Overvalued). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Sumitomo Realty & Development Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 3.85%.

Sumitomo Realty & Development Co  (FRA:RL2) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Sumitomo Realty & Development Co ROCE % Related Terms

Sumitomo Realty & Development Co ROCE % Historical Data

* Premium members only.

The historical data trend for Sumitomo Realty & Development Co's ROCE % 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.

Sumitomo Realty & Development Co ROCE % Chart

Sumitomo Realty & Development Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.63 4.43 4.48 5.03 5.09

Sumitomo Realty & Development Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % 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 4.68 7.44 4.65 5.66 3.85
FRA:RL2
78GF Score
Sumitomo Realty & Development Co Ltd FRA:RL2
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Sumitomo Realty & Development Co ROCE % Calculation

Sumitomo Realty & Development Co's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=1803.136/( ( (41717.03 - 4902.883) + (39170.135 - 5092.647) )/ 2 )
=1803.136/( (36814.147+34077.488)/ 2 )
=1803.136/35445.8175
=5.09 %

Sumitomo Realty & Development Co's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=1306.004/( ( (38852.358 - 5024.154) + (39170.135 - 5092.647) )/ 2 )
=1306.004/( ( 33828.204 + 34077.488 )/ 2 )
=1306.004/33952.846
=3.85 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 3.85% mean?
Sumitomo Realty & Development Co (FRA:RL2) has a ROCE % of 3.85% as of Mar. 2026.
Is Sumitomo Realty & Development Co's ROCE % too high?
Sumitomo Realty & Development Co's current ROCE % is 3.85%. The Real Estate industry median ROCE % is 4.66. Sumitomo Realty & Development Co's value of 3.85% is 17.4% below this industry median. Overall, Sumitomo Realty & Development Co has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Realty & Development Co's ROCE % compare to CBRE and BEKE?
Sumitomo Realty & Development Co's ROCE % of 3.85% can be compared against companies in the Real Estate industry. The industry median ROCE % is 4.66. Sumitomo Realty & Development Co's value of 3.85% is 17.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Real Estate company?
The median ROCE % among Real Estate companies is 4.66, based on 1,757 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sumitomo Realty & Development Co's current ROCE % of 3.85% is 17.4% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Real Estate industry, the median ROCE % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Realty & Development Co's current ROCE % is 3.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Realty & Development Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Realty & Development Co (FRA:RL2) is currently considered Modestly Overvalued. The stock's GF Value™ is €14.80, compared to a current price of €18.80 — trading 27% above its estimated fair value. The current ROCE % is 3.85% and 17.4% below the Real Estate industry median of 4.66. Sumitomo Realty & Development Co's overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Sumitomo Realty & Development Co (FRA:RL2), the current ROCE % is 3.85% as of Mar. 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 Sumitomo Realty & Development Co (FRA:RL2) Overvalued in 2026?

Based on GuruFocus' analysis, Sumitomo Realty & Development Co stock appears to be overvalued. The current stock price of €18.80 is trading 27% above its estimated GF Value™ of €14.80. GuruFocus considers Sumitomo Realty & Development Co to be Modestly Overvalued.

Key valuation signals for FRA:RL2:

  • ROCE %: 3.85%
  • GF Value™: €14.80 vs. price of €18.80 (27% above fair value)
  • GF Score™: 78/100 with 3 warning signs
  • Industry Position: 17.4% below the Real Estate median

No single metric tells the full story. See the FRA:RL2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Sumitomo Realty & Development Co Business Description

Address 2-4-1 Nishi-Shinjuku, Shinjuku NS Building, Shinjuku-ku, Tokyo, JPN, 163-0820
Sumitomo Realty & Development is a Japan-based company engaged in the real estate business. The company operates through four segments. The Completed Construction segment covers construction and renovation contracts for detached houses and condominiums. The Real Estate Distribution segment involves brokerage and sales agency services. The Real Estate Rental segment includes leasing and management of office buildings, condominiums, hotels, event halls, and commercial facilities. The Real Estate Sales segment focuses on condominiums and detached houses, and the Others segment covers businesses such as fitness clubs and restaurants. It generates the majority of its revenue from the Real estate rental segment.
78GF Score

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

€18.80
Price
€14.80
GF Value