Japan TobaccoJAPAF 78 ROE % is 19.12% as of Mar. 2026, which is 46% above its 10-year median of 13.13. GuruFocus rates JAPAF with a GF Score™ of 78/100 and a GF Value™ of $33.10 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 45 Tobacco Products companies, Japan Tobacco ranks worse than 55.56% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Japan Tobacco's annualized net income for the quarter that ended in Mar. 2026 was $4,967 Mil. Japan Tobacco's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $25,979 Mil. Therefore, Japan Tobacco's annualized ROE % for the quarter that ended in Mar. 2026 was 19.12%.
The historical rank and industry rank for Japan Tobacco's ROE % or its related term are showing as below:
JAPAF'
s ROE % Range Over the Past 10 Years
Min: 4.72 Med: 13.13 Max: 17.19
Current: 13.64
During the past 13 years, Japan Tobacco's highest ROE % was 17.19%. The lowest was 4.72%. And the median was 13.13%.
JAPAF's ROE % is ranked worse than 55.56% of 45
companies
in the Tobacco Products industry
Industry Median: 16.13
vs JAPAF: 13.64
Japan Tobacco (OTCPK:JAPAF) 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.
Japan Tobacco ROE % Related Terms
Japan Tobacco ROE % Historical Data
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The historical data trend for Japan Tobacco'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 Tobacco subindustry, Japan Tobacco'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.
Japan Tobacco ROE % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Japan Tobacco's ROE % distribution charts can be found below:
* The bar in red indicates where Japan Tobacco'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.
Japan Tobacco (JAPAF) has a ROE % of 19.12% 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 Japan Tobacco and its competitors. This is 46% above median its historical median of 13.13. Over the past decade, Japan Tobacco's ROE % has ranged from 4.72 to 17.19. According to the industry distribution chart, Japan Tobacco ranks #25 out of 45 companies in the Tobacco Products industry, placing it in the top 55.6%.
Is Japan Tobacco's ROE % too high?
Japan Tobacco's current ROE % of 19.12% is 46% above median its 10-year median of 13.13. Over the past 10 years, this metric has ranged from a low of 4.72 to a high of 17.19. The Tobacco Products industry median ROE % is 16.13. Japan Tobacco's value of 19.12% is 18.5% above this industry median. Based on the distribution chart, Japan Tobacco ranks #25 out of 45 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, Japan Tobacco has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Tobacco's ROE % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Japan Tobacco ranks #25 out of 45 companies for ROE %. This places Japan Tobacco in the lower half of its industry. The industry median ROE % is 16.13. Japan Tobacco's value of 19.12% is 18.5% above this benchmark. Historically, Japan Tobacco's own ROE % has ranged from 4.72 to 17.19 over the past decade. While the company's 10-year median is 13.13 vs. the industry median of 16.13, Japan Tobacco 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 Tobacco Products company?
The median ROE % among Tobacco Products companies is 16.13, based on 45 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. Japan Tobacco's current ROE % of 19.12% is 18.5% 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 Japan Tobacco and its competitors. For the Tobacco Products industry, the median ROE % is 16.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Tobacco's current ROE % is 19.12%, which is 46% above median its own 10-year median of 13.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Tobacco stock overvalued right now?
Based on GuruFocus' analysis, Japan Tobacco (JAPAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $33.10, compared to a current price of $37.74 — trading 14% above its estimated fair value. The current ROE % is 19.12%, which is 46% above median its 10-year median of 13.13 and 18.5% above the Tobacco Products industry median of 16.13. Japan Tobacco's overall GF Score™ is 78/100 with 7 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 Japan Tobacco (JAPAF), the current ROE % is 19.12% 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 Japan Tobacco (JAPAF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Tobacco stock appears to be overvalued.
The current stock price of $37.74 is trading 14% above its estimated GF Value™ of $33.10.
GuruFocus considers Japan Tobacco to be Modestly Overvalued.
Key valuation signals for JAPAF:
ROE %: 19.12% (46% above median its 10-year median of 13.13)
GF Value™: $33.10 vs. price of $37.74 (14% above fair value)
Industry Position: 18.5% above the Tobacco Products median (#25 of 45)
No single metric tells the full story. See the JAPAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Tobacco primarily sells cigarettes and reduced-risk products, organized in three clusters consisting of Asia (which includes its home market and countries in Asia Pacific), Western Europe, and EMA (which includes Eastern Europe, the Middle East North Africa, Turkey, Americas, and duty-free). Its leading cigarette brands include Winston (non-US), Camel (non-US), Mevius, and LD. Its reduced-risk brands include Logic in vaping, Ploom in heated tobacco, and Nordic Spirit in nicotine pouches, though these generates less than 5% of tobacco sales.
78GF Score
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