Harmonic Drive SystemsHSYDF +1.09%69 ROE % is 4.21% as of Mar. 2026, which is 23% below its 10-year median of 5.49. GuruFocus rates HSYDF with a GF Score™ of 69/100 and a GF Value™ of $23.38 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 3,009 Industrial Products companies, Harmonic Drive Systems ranks worse than 67.73% on this metric.
The historical rank and industry rank for Harmonic Drive Systems's ROE % or its related term are showing as below:
HSYDF'
s ROE % Range Over the Past 10 Years
Min: -27.06 Med: 5.49 Max: 42.81
Current: 2.06
During the past 13 years, Harmonic Drive Systems's highest ROE % was 42.81%. The lowest was -27.06%. And the median was 5.49%.
HSYDF's ROE % is ranked worse than 67.73% of 3009
companies
in the Industrial Products industry
Industry Median: 5.91
vs HSYDF: 2.06
Harmonic Drive Systems (OTCPK:HSYDF) 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 Specialty Industrial Machinery subindustry, Harmonic Drive Systems'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.
Harmonic Drive Systems ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Harmonic Drive Systems's ROE % distribution charts can be found below:
* The bar in red indicates where Harmonic Drive Systems'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.
Harmonic Drive Systems (HSYDF) has a ROE % of 4.21% 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 Harmonic Drive Systems and its competitors. This is 23% below median its historical median of 5.49. According to the industry distribution chart, Harmonic Drive Systems ranks #2038 out of 3009 companies in the Industrial Products industry, placing it in the top 67.7%.
Is Harmonic Drive Systems' ROE % too high?
Harmonic Drive Systems' current ROE % of 4.21% is 23% below median its 10-year median of 5.49. The Industrial Products industry median ROE % is 5.91. Harmonic Drive Systems' value of 4.21% is 28.8% below this industry median. Based on the distribution chart, Harmonic Drive Systems ranks #2038 out of 3009 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Harmonic Drive Systems has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Harmonic Drive Systems' ROE % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Harmonic Drive Systems ranks #2038 out of 3009 companies for ROE %. This places Harmonic Drive Systems in the lower half of its industry. The industry median ROE % is 5.91. Harmonic Drive Systems' value of 4.21% is 28.8% below this benchmark. While the company's 10-year median is 5.49 vs. the industry median of 5.91, Harmonic Drive Systems has consistently been below 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 an Industrial Products company?
The median ROE % among Industrial Products companies is 5.91, based on 3,009 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. Harmonic Drive Systems's current ROE % of 4.21% is 28.8% 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 Harmonic Drive Systems and its competitors. For the Industrial Products industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Harmonic Drive Systems's current ROE % is 4.21%, which is 23% below median its own 10-year median of 5.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harmonic Drive Systems stock overvalued right now?
Based on GuruFocus' analysis, Harmonic Drive Systems (HSYDF) is currently considered Significantly Overvalued. The stock's GF Value™ is $23.38, compared to a current price of $48.90 — trading 109.2% above its estimated fair value. The current ROE % is 4.21%, which is 23% below median its 10-year median of 5.49 and 28.8% below the Industrial Products industry median of 5.91. Harmonic Drive Systems' overall GF Score™ is 69/100 with 10 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 Harmonic Drive Systems (HSYDF), the current ROE % is 4.21% 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 Harmonic Drive Systems (HSYDF) Overvalued in 2026?
Based on GuruFocus' analysis, Harmonic Drive Systems stock appears to be overvalued.
The current stock price of $48.90 is trading 109.2% above its estimated GF Value™ of $23.38.
GuruFocus considers Harmonic Drive Systems to be Significantly Overvalued.
Key valuation signals for HSYDF:
ROE %: 4.21% (23% below median its 10-year median of 5.49)
GF Value™: $23.38 vs. price of $48.90 (109.2% above fair value)
Industry Position: 28.8% below the Industrial Products median (#2038 of 3009)
No single metric tells the full story. See the HSYDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harmonic Drive Systems manufactures and sells high-precision reduction gears (harmonic reducers) under the Harmonic Drive brand as well as other mechatronics products, including rotary actuators, linear actuators, and AC servo motors. The company also provides planetary gear speed reducers under the AccuDrive and Harmonic Planetary brands. Its products are used in industrial robots, semiconductor production equipment, and other high-precision equipment. HDS was founded in 1970 and is headquartered in Tokyo, Japan.
69GF Score
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