Chugai Pharmaceutical CoCHGCY +0.13%92 ROE % is 23.26% as of Mar. 2026, which is 7% above its 10-year median of 21.65. GuruFocus rates CHGCY with a GF Score™ of 92/100 and a GF Value™ of $24.27 (Fairly Valued). The stock has 1 warning sign investors should review. Among 936 Drug Manufacturers companies, Chugai Pharmaceutical Co ranks better than 90.28% on this metric.
The historical rank and industry rank for Chugai Pharmaceutical Co's ROE % or its related term are showing as below:
CHGCY'
s ROE % Range Over the Past 10 Years
Min: 8.43 Med: 21.65 Max: 28.67
Current: 23.27
During the past 13 years, Chugai Pharmaceutical Co's highest ROE % was 28.67%. The lowest was 8.43%. And the median was 21.65%.
CHGCY's ROE % is ranked better than 90.28% of 936
companies
in the Drug Manufacturers industry
Industry Median: 5.865
vs CHGCY: 23.27
Chugai Pharmaceutical Co (OTCPK:CHGCY) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Drug Manufacturers - General subindustry, Chugai Pharmaceutical Co's ROE %, along with its competitors' market caps and ROE % 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.
Chugai Pharmaceutical Co ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Chugai Pharmaceutical Co's ROE % distribution charts can be found below:
* The bar in red indicates where Chugai Pharmaceutical Co's ROE % 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 annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Chugai Pharmaceutical Co (CHGCY) has a ROE % of 23.26% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Chugai Pharmaceutical Co and its competitors. This is near median its historical median of 21.65. Over the past decade, Chugai Pharmaceutical Co's ROE % has ranged from 8.43 to 28.67. According to the industry distribution chart, Chugai Pharmaceutical Co ranks #91 out of 936 companies in the Drug Manufacturers industry, placing it in the top 9.7%.
Is Chugai Pharmaceutical Co's ROE % too high?
Chugai Pharmaceutical Co's current ROE % of 23.26% is near median its 10-year median of 21.65. Over the past 10 years, this metric has ranged from a low of 8.43 to a high of 28.67. The Drug Manufacturers industry median ROE % is 5.87. Chugai Pharmaceutical Co's value of 23.26% is 296.6% above this industry median. Based on the distribution chart, Chugai Pharmaceutical Co ranks #91 out of 936 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Chugai Pharmaceutical Co has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chugai Pharmaceutical Co's ROE % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Chugai Pharmaceutical Co ranks #91 out of 936 companies for ROE %. This places Chugai Pharmaceutical Co in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 5.87. Chugai Pharmaceutical Co's value of 23.26% is 296.6% above this benchmark. Historically, Chugai Pharmaceutical Co's own ROE % has ranged from 8.43 to 28.67 over the past decade. While the company's 10-year median is 21.65 vs. the industry median of 5.87, Chugai Pharmaceutical 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 ROE % for a Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 5.87, based on 936 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chugai Pharmaceutical Co's current ROE % of 23.26% is 296.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Chugai Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chugai Pharmaceutical Co's current ROE % is 23.26%, which is near median its own 10-year median of 21.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chugai Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Chugai Pharmaceutical Co (CHGCY) is currently considered Fairly Valued. The stock's GF Value™ is $24.27, compared to a current price of $22.99 — trading 5.3% below its estimated fair value. The current ROE % is 23.26%, which is near median its 10-year median of 21.65 and 296.6% above the Drug Manufacturers industry median of 5.87. Chugai Pharmaceutical Co's overall GF Score™ is 92/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Chugai Pharmaceutical Co (CHGCY), the current ROE % is 23.26% 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 Chugai Pharmaceutical Co (CHGCY) Overvalued in 2026?
Based on GuruFocus' analysis, Chugai Pharmaceutical Co stock appears to be undervalued.
The current stock price of $22.99 is trading 5.3% below its estimated GF Value™ of $24.27.
GuruFocus considers Chugai Pharmaceutical Co to be Fairly Valued.
Key valuation signals for CHGCY:
ROE %: 23.26% (near median its 10-year median of 21.65)
GF Value™: $24.27 vs. price of $22.99 (5.3% below fair value)
Industry Position: 296.6% above the Drug Manufacturers median (#91 of 936)
No single metric tells the full story. See the CHGCY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chugai Pharmaceutical is a Japanese drug developer and subsidiary of Roche Holding, which owns roughly 60% of the company. Founded in 1925, Chugai deals primarily in the Japanese market, where it generates roughly half of its revenue. It has been the leader in Japan's oncology market for the past decade, largely due to drugs licensed from its parent's portfolio. The company also develops its own innovative medicines. It is an industry leader in antibody technology with several flagship therapies, including Hemlibra (hemophilia), Actemra (rheumatoid arthritis, covid), Foundayo (oral obesity pill), and Nemluvio (atopic dermatitis, prurigo nodularis).
92GF Score
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