Shima Seiki Mfg (FRA:2ME) ROE %: 2.26% (As of Mar. 2026)

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FRA:2ME Shima Seiki Mfg Ltd FRA:2ME
67 GF Score
Price €4.75
GF Value €6.45
! 4 Warning Signs
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What is Shima Seiki Mfg ROE %?

Shima Seiki Mfg FRA:2ME -3.80% 67 ROE % is 2.26% as of Mar. 2026. GuruFocus rates FRA:2ME with a GF Score™ of 67/100 and a GF Value™ of €6.45. The stock has 4 warning signs investors should review. Among 3,001 Industrial Products companies, Shima Seiki Mfg ranks worse than 71.61% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Shima Seiki Mfg's annualized net income for the quarter that ended in Mar. 2026 was €10.1 Mil. Shima Seiki Mfg's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €447.9 Mil. Therefore, Shima Seiki Mfg's annualized ROE % for the quarter that ended in Mar. 2026 was 2.26%.

The historical rank and industry rank for Shima Seiki Mfg's ROE % or its related term are showing as below:

FRA:2ME' s ROE % Range Over the Past 10 Years
Min: -18.05   Med: -1.47   Max: 9.88
Current: 1.07

During the past 13 years, Shima Seiki Mfg's highest ROE % was 9.88%. The lowest was -18.05%. And the median was -1.47%.

FRA:2ME's ROE % is ranked worse than
71.61% of 3001 companies
in the Industrial Products industry
Industry Median: 5.85 vs FRA:2ME: 1.07

Shima Seiki Mfg  (FRA:2ME) 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:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=10.116/447.874
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(10.116 / 201.648)*(201.648 / 597.7285)*(597.7285 / 447.874)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.02 %*0.3374*1.3346
=ROA %*Equity Multiplier
=1.69 %*1.3346
=2.26 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=10.116/447.874
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (10.116 / 11.208) * (11.208 / -14.348) * (-14.348 / 201.648) * (201.648 / 597.7285) * (597.7285 / 447.874)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9026 * -0.7812 * -7.12 % * 0.3374 * 1.3346
=2.26 %

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.


Shima Seiki Mfg ROE % Related Terms


Shima Seiki Mfg ROE % Historical Data

* Premium members only.

The historical data trend for Shima Seiki Mfg's ROE % 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.

Shima Seiki Mfg ROE % Chart

Shima Seiki Mfg Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.00 -6.16 1.09 -16.93 1.00

Shima Seiki Mfg Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % 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 -14.94 4.59 -1.18 -1.36 2.26

FRA:2ME vs GEV, ETN, PH: ROE % Comparison

For the Specialty Industrial Machinery subindustry, Shima Seiki Mfg'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.


Shima Seiki Mfg ROE % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shima Seiki Mfg's ROE % distribution charts can be found below:

* The bar in red indicates where Shima Seiki Mfg's ROE % falls into.


FRA:2ME
67GF Score
Shima Seiki Mfg Ltd FRA:2ME
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shima Seiki Mfg ROE % Calculation

Shima Seiki Mfg's annualized ROE % for the fiscal year that ended in Mar. 2026 is calculated as

ROE %=Net Income (A: Mar. 2026 )/( (Total Stockholders Equity (A: Mar. 2025 )+Total Stockholders Equity (A: Mar. 2026 ))/ count )
=4.666/( (482.26+448.906)/ 2 )
=4.666/465.583
=1.00 %

Shima Seiki Mfg's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=10.116/( (446.842+448.906)/ 2 )
=10.116/447.874
=2.26 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 2.26% mean?
Shima Seiki Mfg (FRA:2ME) has a ROE % of 2.26% 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 Shima Seiki Mfg and its competitors. According to the industry distribution chart, Shima Seiki Mfg ranks #2149 out of 3001 companies in the Industrial Products industry, placing it in the top 71.6%.
Is Shima Seiki Mfg's ROE % too high?
Shima Seiki Mfg's current ROE % is 2.26%. The Industrial Products industry median ROE % is 5.85. Shima Seiki Mfg's value of 2.26% is 61.4% below this industry median. Based on the distribution chart, Shima Seiki Mfg ranks #2149 out of 3001 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Shima Seiki Mfg has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Shima Seiki Mfg's ROE % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shima Seiki Mfg ranks #2149 out of 3001 companies for ROE %. This places Shima Seiki Mfg in the lower half of its industry. The industry median ROE % is 5.85. Shima Seiki Mfg's value of 2.26% is 61.4% 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 ROE % for an Industrial Products company?
The median ROE % among Industrial Products companies is 5.85, based on 3,001 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. Shima Seiki Mfg's current ROE % of 2.26% is 61.4% 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 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 Shima Seiki Mfg and its competitors. For the Industrial Products industry, the median ROE % is 5.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shima Seiki Mfg's current ROE % is 2.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shima Seiki Mfg stock overvalued right now?
Shima Seiki Mfg (FRA:2ME) has a current ROE % of 2.26%. The stock's GF Value™ is €6.45, compared to a current price of €4.75 — trading 26.3% below its estimated fair value. The current ROE % is 2.26% and 61.4% below the Industrial Products industry median of 5.85. Shima Seiki Mfg's overall GF Score™ is 67/100 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 Shima Seiki Mfg (FRA:2ME), the current ROE % is 2.26% 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 Shima Seiki Mfg (FRA:2ME) Overvalued in 2026?

Based on GuruFocus' analysis, Shima Seiki Mfg stock appears to be undervalued. The current stock price of €4.75 is trading 26.3% below its estimated GF Value™ of €6.45.

Key valuation signals for FRA:2ME:

  • ROE %: 2.26%
  • GF Value™: €6.45 vs. price of €4.75 (26.3% below fair value)
  • GF Score™: 67/100 with 4 warning signs
  • Industry Position: 61.4% below the Industrial Products median (#2149 of 3001)

No single metric tells the full story. See the FRA:2ME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shima Seiki Mfg Business Description

Other Exchanges 6222:Japan
Address 85 Sakata, Wakayama, JPN, 641-8511
Shima Seiki Mfg Ltd is a Japan-based company that is engaged in developing, manufacturing, selling, and servicing computerized flat knitting machines, design systems, automatic fabric-cutting machines, and glove- and sock-knitting machines. The company's products are applied in apparel, knitting, weaving, printing, circular knitting, interior furnishings, automotive, aerospace, and other industrial materials. Flat knitting machines account for the majority of the company's sales. Shima Seiki generates most of its sales from Asia and Europe.
67GF Score

Get the complete analysis for FRA:2ME

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

€4.75
Price
€6.45
GF Value