Dentsu GroupFRA:DEN 69 ROE % is 40.46% as of Mar. 2026, which is 1320% above its 10-year median of 2.85. GuruFocus rates FRA:DEN with a GF Score™ of 69/100 and a GF Value™ of €22.12. The stock has 5 warning signs investors should review. Among 958 Media - Diversified companies, Dentsu Group ranks worse than 90.19% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Dentsu Group's annualized net income for the quarter that ended in Mar. 2026 was €876 Mil. Dentsu Group's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €2,164 Mil. Therefore, Dentsu Group's annualized ROE % for the quarter that ended in Mar. 2026 was 40.46%.
The historical rank and industry rank for Dentsu Group's ROE % or its related term are showing as below:
FRA:DEN'
s ROE % Range Over the Past 10 Years
Min: -61.14 Med: 2.85 Max: 13.67
Current: -55.83
During the past 13 years, Dentsu Group's highest ROE % was 13.67%. The lowest was -61.14%. And the median was 2.85%.
FRA:DEN's ROE % is ranked worse than 90.19% of 958
companies
in the Media - Diversified industry
Industry Median: 2.47
vs FRA:DEN: -55.83
Dentsu Group (FRA:DEN) 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.
Dentsu Group ROE % Related Terms
Dentsu Group ROE % Historical Data
* Premium members only.
The historical data trend for Dentsu Group'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.
For the Advertising Agencies subindustry, Dentsu Group'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.
Dentsu Group ROE % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Dentsu Group's ROE % distribution charts can be found below:
* The bar in red indicates where Dentsu Group'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.
Dentsu Group (FRA:DEN) has a ROE % of 40.46% 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 Dentsu Group and its competitors. This is 1320% above median its historical median of 2.85. According to the industry distribution chart, Dentsu Group ranks #864 out of 958 companies in the Media - Diversified industry, placing it in the top 90.2%.
Is Dentsu Group's ROE % too high?
Dentsu Group's current ROE % of 40.46% is 1320% above median its 10-year median of 2.85. The Media - Diversified industry median ROE % is 2.47. Dentsu Group's value of 40.46% is 1538.1% above this industry median. Based on the distribution chart, Dentsu Group ranks #864 out of 958 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Dentsu Group has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Dentsu Group's ROE % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Dentsu Group ranks #864 out of 958 companies for ROE %. This places Dentsu Group in the lower half of its industry. The industry median ROE % is 2.47. Dentsu Group's value of 40.46% is 1538.1% above this benchmark. While the company's 10-year median is 2.85 vs. the industry median of 2.47, Dentsu Group 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 Media - Diversified company?
The median ROE % among Media - Diversified companies is 2.47, based on 958 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. Dentsu Group's current ROE % of 40.46% is 1538.1% 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 Dentsu Group and its competitors. For the Media - Diversified industry, the median ROE % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dentsu Group's current ROE % is 40.46%, which is 1320% above median its own 10-year median of 2.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dentsu Group stock overvalued right now?
Dentsu Group (FRA:DEN) has a current ROE % of 40.46%. The stock's GF Value™ is €22.12, compared to a current price of €15.90 — trading 28.1% below its estimated fair value. The current ROE % is 40.46%, which is 1320% above median its 10-year median of 2.85 and 1538.1% above the Media - Diversified industry median of 2.47. Dentsu Group's overall GF Score™ is 69/100 with 5 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 Dentsu Group (FRA:DEN), the current ROE % is 40.46% 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 Dentsu Group (FRA:DEN) Overvalued in 2026?
Based on GuruFocus' analysis, Dentsu Group stock appears to be undervalued.
The current stock price of €15.90 is trading 28.1% below its estimated GF Value™ of €22.12.
Key valuation signals for FRA:DEN:
ROE %: 40.46% (1320% above median its 10-year median of 2.85)
GF Value™: €22.12 vs. price of €15.90 (28.1% below fair value)
Industry Position: 1538.1% above the Media - Diversified median (#864 of 958)
No single metric tells the full story. See the FRA:DEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dentsu Group is the top advertising agency in Japan and the fifth-largest advertising network in the world. It is the oldest advertising agency in Japan, with the original company being established in 1901. Over the years, Dentsu expanded its global footprint through mergers and acquisitions. Currently, international sales account for about 60% of total revenue.
69GF Score
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