Sekisui HouseFRA:SPH1 +1.71%91 ROE % is 10.82% as of Apr. 2026, which is 5% below its 10-year median of 11.43. GuruFocus rates FRA:SPH1 with a GF Score™ of 91/100 and a GF Value™ of €22.14 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 95 Homebuilding & Construction companies, Sekisui House ranks better than 70.53% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sekisui House's annualized net income for the quarter that ended in Apr. 2026 was €1,257 Mil. Sekisui House's average Total Stockholders Equity over the quarter that ended in Apr. 2026 was €11,614 Mil. Therefore, Sekisui House's annualized ROE % for the quarter that ended in Apr. 2026 was 10.82%.
The historical rank and industry rank for Sekisui House's ROE % or its related term are showing as below:
FRA:SPH1'
s ROE % Range Over the Past 10 Years
Min: 9.53 Med: 11.43 Max: 12.86
Current: 12.86
During the past 13 years, Sekisui House's highest ROE % was 12.86%. The lowest was 9.53%. And the median was 11.43%.
FRA:SPH1's ROE % is ranked better than 70.53% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 7.88
vs FRA:SPH1: 12.86
Sekisui House (FRA:SPH1) 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 (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 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.
Sekisui House ROE % Related Terms
Sekisui House ROE % Historical Data
* Premium members only.
The historical data trend for Sekisui House'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 Residential Construction subindustry, Sekisui House'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.
Sekisui House ROE % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Sekisui House's ROE % distribution charts can be found below:
* The bar in red indicates where Sekisui House'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 (Apr. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Sekisui House (FRA:SPH1) has a ROE % of 10.82% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sekisui House and its competitors. This is near median its historical median of 11.43. Over the past decade, Sekisui House's ROE % has ranged from 9.53 to 12.86. According to the industry distribution chart, Sekisui House ranks #28 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 29.5%.
Is Sekisui House's ROE % too high?
Sekisui House's current ROE % of 10.82% is near median its 10-year median of 11.43. Over the past 10 years, this metric has ranged from a low of 9.53 to a high of 12.86. The Homebuilding & Construction industry median ROE % is 7.88. Sekisui House's value of 10.82% is 37.3% above this industry median. Based on the distribution chart, Sekisui House ranks #28 out of 95 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Sekisui House has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sekisui House's ROE % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Sekisui House ranks #28 out of 95 companies for ROE %. This puts Sekisui House in the upper half of its industry. The industry median ROE % is 7.88. Sekisui House's value of 10.82% is 37.3% above this benchmark. Historically, Sekisui House's own ROE % has ranged from 9.53 to 12.86 over the past decade. While the company's 10-year median is 11.43 vs. the industry median of 7.88, Sekisui House 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 Homebuilding & Construction company?
The median ROE % among Homebuilding & Construction companies is 7.88, based on 95 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. Sekisui House's current ROE % of 10.82% is 37.3% 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 Sekisui House and its competitors. For the Homebuilding & Construction industry, the median ROE % is 7.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sekisui House's current ROE % is 10.82%, which is near median its own 10-year median of 11.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sekisui House stock overvalued right now?
Based on GuruFocus' analysis, Sekisui House (FRA:SPH1) is currently considered Modestly Undervalued. The stock's GF Value™ is €22.14, compared to a current price of €17.86 — trading 19.4% below its estimated fair value. The current ROE % is 10.82%, which is near median its 10-year median of 11.43 and 37.3% above the Homebuilding & Construction industry median of 7.88. Sekisui House's overall GF Score™ is 91/100 with 3 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 Sekisui House (FRA:SPH1), the current ROE % is 10.82% as of Apr. 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 Sekisui House (FRA:SPH1) Overvalued in 2026?
Based on GuruFocus' analysis, Sekisui House stock appears to be undervalued.
The current stock price of €17.86 is trading 19.4% below its estimated GF Value™ of €22.14.
GuruFocus considers Sekisui House to be Modestly Undervalued.
Key valuation signals for FRA:SPH1:
ROE %: 10.82% (near median its 10-year median of 11.43)
GF Value™: €22.14 vs. price of €17.86 (19.4% below fair value)
Industry Position: 37.3% above the Homebuilding & Construction median (#28 of 95)
No single metric tells the full story. See the FRA:SPH1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sekisui House Ltd company's activities includes equity-method affiliates, is involved in the Custom Detached Houses Business, Rental Housing and Commercial Buildings Business, Architectural/Civil Engineering Business, Rental Housing Management Business, Remodeling Business, Development Business, Overseas Business, and carries out related business activities. Segments includes Custom detached houses Business, Rental housing and commercial buildings Business, Architectural / Civil engineering Business, Rental housing management Business, Remodeling Business, Development Business, and Overseas Business of which majority of revenue comes from Rental housing and commercial buildings Business.
91GF Score
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