Electric Power Development Co (OTCPK:EDRWY) 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.
Electric Power Development Co ROE % Related Terms
Electric Power Development Co ROE % Historical 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.
Electric Power Development Co ROE % Competitor Comparison
For the Utilities - Renewable subindustry, Electric Power Development 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.
Electric Power Development Co ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Electric Power Development Co's ROE % distribution charts can be found below:
* The bar in red indicates where Electric Power Development 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.
Electric Power Development Co (EDRWY) has a ROE % of -7.26% 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 Electric Power Development Co and its competitors. Over the past decade, Electric Power Development Co's ROE % has ranged from 2.76 to 11.36. According to the industry distribution chart, Electric Power Development Co ranks #206 out of 433 companies in the Utilities - Independent Power Producers industry, placing it in the top 47.6%.
Is Electric Power Development Co's ROE % too high?
Electric Power Development Co's current ROE % is -7.26%. Over the past 10 years, this metric has ranged from a low of 2.76 to a high of 11.36. Based on the distribution chart, Electric Power Development Co ranks #206 out of 433 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Electric Power Development Co has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Electric Power Development Co's ROE % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Electric Power Development Co ranks #206 out of 433 companies for ROE %. This puts Electric Power Development Co in the upper half of its industry. The industry median ROE % is 3.80. Historically, Electric Power Development Co's own ROE % has ranged from 2.76 to 11.36 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Utilities - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.80, based on 433 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. 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 Electric Power Development Co and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Electric Power Development Co's current ROE % is -7.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Electric Power Development Co stock overvalued right now?
Electric Power Development Co (EDRWY) has a current ROE % of -7.26%. The stock's GF Value™ is $16.49, compared to a current price of $24.95 — trading 51.3% above its estimated fair value. The current ROE % is -7.26%. Electric Power Development Co's overall GF Score™ is 54/100 with 4 warning signs 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 Electric Power Development Co (EDRWY), the current ROE % is -7.26% 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 Electric Power Development Co (EDRWY) Overvalued in 2026?
Based on GuruFocus' analysis, Electric Power Development Co stock appears to be overvalued.
The current stock price of $24.95 is trading 51.3% above its estimated GF Value™ of $16.49.
Key valuation signals for EDRWY:
ROE %: -7.26%
GF Value™: $16.49 vs. price of $24.95 (51.3% above fair value)
No single metric tells the full story. See the EDRWY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Electric Power Development Co Business Description
Electric Power Development Co Ltd is a Japanese electric utility company involved in the generation, transmission, distribution, and retail sale of energy. The company operates through four segments. The Power Generation segment covers hydro, thermal, and wind power generation, along with maintenance, operation, and electricity sales. The Power Transmission and Transformation segment focuses on grid and network operations. Electricity-related Businesses support generation and transmission activities to ensure smooth and efficient operations. The Overseas Business engages in power generation and related services abroad. It generates the majority of its revenue from the Power Generation Business segment.
54GF Score
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