Kawasaki Heavy IndustriesKWHIY -1.52%84 ROE % is 19.91% as of Mar. 2026, which is 236% above its 10-year median of 5.93. GuruFocus rates KWHIY with a GF Score™ of 84/100 and a GF Value™ of $4.11 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 3,009 Industrial Products companies, Kawasaki Heavy Industries ranks better than 80.36% on this metric.
The historical rank and industry rank for Kawasaki Heavy Industries's ROE % or its related term are showing as below:
KWHIY'
s ROE % Range Over the Past 10 Years
Min: -4.2 Med: 5.93 Max: 13.91
Current: 13.91
During the past 13 years, Kawasaki Heavy Industries's highest ROE % was 13.91%. The lowest was -4.20%. And the median was 5.93%.
KWHIY's ROE % is ranked better than 80.36% of 3009
companies
in the Industrial Products industry
Industry Median: 5.91
vs KWHIY: 13.91
Kawasaki Heavy Industries (OTCPK:KWHIY) 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, Kawasaki Heavy Industries'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.
Kawasaki Heavy Industries ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kawasaki Heavy Industries's ROE % distribution charts can be found below:
* The bar in red indicates where Kawasaki Heavy Industries'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.
Kawasaki Heavy Industries (KWHIY) has a ROE % of 19.91% 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 Kawasaki Heavy Industries and its competitors. This is 236% above median its historical median of 5.93. According to the industry distribution chart, Kawasaki Heavy Industries ranks #591 out of 3009 companies in the Industrial Products industry, placing it in the top 19.6%.
Is Kawasaki Heavy Industries' ROE % too high?
Kawasaki Heavy Industries' current ROE % of 19.91% is 236% above median its 10-year median of 5.93. The Industrial Products industry median ROE % is 5.91. Kawasaki Heavy Industries' value of 19.91% is 236.9% above this industry median. Based on the distribution chart, Kawasaki Heavy Industries ranks #591 out of 3009 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Kawasaki Heavy Industries has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kawasaki Heavy Industries' ROE % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Kawasaki Heavy Industries ranks #591 out of 3009 companies for ROE %. This places Kawasaki Heavy Industries in the top 20% of its industry — outperforming the majority of peers. The industry median ROE % is 5.91. Kawasaki Heavy Industries' value of 19.91% is 236.9% above this benchmark. While the company's 10-year median is 5.93 vs. the industry median of 5.91, Kawasaki Heavy Industries 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 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. Kawasaki Heavy Industries's current ROE % of 19.91% is 236.9% 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 Kawasaki Heavy Industries 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. Kawasaki Heavy Industries's current ROE % is 19.91%, which is 236% above median its own 10-year median of 5.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawasaki Heavy Industries stock overvalued right now?
Based on GuruFocus' analysis, Kawasaki Heavy Industries (KWHIY) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.11, compared to a current price of $7.11 — trading 73% above its estimated fair value. The current ROE % is 19.91%, which is 236% above median its 10-year median of 5.93 and 236.9% above the Industrial Products industry median of 5.91. Kawasaki Heavy Industries' overall GF Score™ is 84/100 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 Kawasaki Heavy Industries (KWHIY), the current ROE % is 19.91% 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 Kawasaki Heavy Industries (KWHIY) Overvalued in 2026?
Based on GuruFocus' analysis, Kawasaki Heavy Industries stock appears to be overvalued.
The current stock price of $7.11 is trading 73% above its estimated GF Value™ of $4.11.
GuruFocus considers Kawasaki Heavy Industries to be Significantly Overvalued.
Key valuation signals for KWHIY:
ROE %: 19.91% (236% above median its 10-year median of 5.93)
GF Value™: $4.11 vs. price of $7.11 (73% above fair value)
Industry Position: 236.9% above the Industrial Products median (#591 of 3009)
No single metric tells the full story. See the KWHIY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawasaki Heavy Industries Ltd is a Japan-based conglomerate with operations in aerospace, marine, and vehicles. The company operates through six segments. The Aerospace Systems segment manufactures and sells aircraft, engines, and space-related equipment. The Energy Solutions & Marine segment provides energy equipment, hydrogen systems, marine propulsion, plants, ships, and crushers. The Power Sports & Engine segment produces motorcycles, off-road vehicles, personal watercraft, and general-purpose engines. The Precision Machinery and Robots segment offers hydraulic equipment and industrial robots. The Vehicle segment manufactures railway vehicles and snow removal machinery. The Other segment covers commerce mediation, sales, orders, and welfare facility management.
84GF Score
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