MECGF (MEC Co) ROE %: 22.54% (As of Dec. 2025) — 80% Above Median

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MECGF MEC Co Ltd MECGF
77 GF Score
Price $47.16
GF Value $25.24
Valuation Significantly Overvalued
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What is MEC Co ROE %?

MEC Co MECGF 77 ROE % is 22.54% as of Dec. 2025, which is 80% above its 10-year median of 12.53. GuruFocus rates MECGF with a GF Score™ of 77/100 and a GF Value™ of $25.24 (Significantly Overvalued). Among 1,586 Chemicals companies, MEC Co ranks better than 93.38% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. MEC Co's annualized net income for the quarter that ended in Dec. 2025 was $43.6 Mil. MEC Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was $193.5 Mil. Therefore, MEC Co's annualized ROE % for the quarter that ended in Dec. 2025 was 22.54%.

The historical rank and industry rank for MEC Co's ROE % or its related term are showing as below:

MECGF' s ROE % Range Over the Past 10 Years
Min: 7.91   Med: 12.53   Max: 21.11
Current: 21.11

During the past 13 years, MEC Co's highest ROE % was 21.11%. The lowest was 7.91%. And the median was 12.53%.

MECGF's ROE % is ranked better than
93.38% of 1586 companies
in the Chemicals industry
Industry Median: 5.395 vs MECGF: 21.11

MEC Co  (OTCPK:MECGF) 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:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=43.6/193.459
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(43.6 / 152.904)*(152.904 / 232.772)*(232.772 / 193.459)
=Net Margin %*Asset Turnover*Equity Multiplier
=28.51 %*0.6569*1.2032
=ROA %*Equity Multiplier
=18.73 %*1.2032
=22.54 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=43.6/193.459
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (43.6 / 43.908) * (43.908 / 38.496) * (38.496 / 152.904) * (152.904 / 232.772) * (232.772 / 193.459)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.993 * 1.1406 * 25.18 % * 0.6569 * 1.2032
=22.54 %

Note: The net income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) 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.


MEC Co ROE % Related Terms


MEC Co ROE % Historical Data

* Premium members only.

The historical data trend for MEC Co'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.

MEC Co ROE % Chart

MEC Co Annual Data
Trend Mar16 Mar17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.71 12.73 9.28 8.59 17.42

MEC Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.29 21.48 20.38 22.54 19.52

MECGF vs LIN, SHW, ECL: ROE % Comparison

For the Specialty Chemicals subindustry, MEC Co'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.


MEC Co ROE % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, MEC Co's ROE % distribution charts can be found below:

* The bar in red indicates where MEC Co's ROE % falls into.


MECGF
77GF Score
MEC Co Ltd MECGF
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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MEC Co ROE % Calculation

MEC Co's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=32.252/( (174.868+195.44)/ 2 )
=32.252/185.154
=17.42 %

MEC Co's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=43.6/( (191.478+195.44)/ 2 )
=43.6/193.459
=22.54 %

* 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 (Dec. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 22.54% mean?
MEC Co (MECGF) has a ROE % of 22.54% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on MEC Co and its competitors. This is 80% above median its historical median of 12.53. Over the past decade, MEC Co's ROE % has ranged from 7.91 to 21.11. According to the industry distribution chart, MEC Co ranks #105 out of 1586 companies in the Chemicals industry, placing it in the top 6.6%.
Is MEC Co's ROE % too high?
MEC Co's current ROE % of 22.54% is 80% above median its 10-year median of 12.53. Over the past 10 years, this metric has ranged from a low of 7.91 to a high of 21.11. The Chemicals industry median ROE % is 5.40. MEC Co's value of 22.54% is 317.8% above this industry median. Based on the distribution chart, MEC Co ranks #105 out of 1586 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, MEC Co has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MEC Co's ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, MEC Co ranks #105 out of 1586 companies for ROE %. This places MEC Co in the top 7% of its industry — outperforming the majority of peers. The industry median ROE % is 5.40. MEC Co's value of 22.54% is 317.8% above this benchmark. Historically, MEC Co's own ROE % has ranged from 7.91 to 21.11 over the past decade. While the company's 10-year median is 12.53 vs. the industry median of 5.40, MEC Co 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 Chemicals company?
The median ROE % among Chemicals companies is 5.40, based on 1,586 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. MEC Co's current ROE % of 22.54% is 317.8% 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 MEC Co and its competitors. For the Chemicals industry, the median ROE % is 5.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MEC Co's current ROE % is 22.54%, which is 80% above median its own 10-year median of 12.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MEC Co stock overvalued right now?
Based on GuruFocus' analysis, MEC Co (MECGF) is currently considered Significantly Overvalued. The stock's GF Value™ is $25.24, compared to a current price of $47.16 — trading 86.8% above its estimated fair value. The current ROE % is 22.54%, which is 80% above median its 10-year median of 12.53 and 317.8% above the Chemicals industry median of 5.40. MEC Co's overall GF Score™ is 77/100. 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 MEC Co (MECGF), the current ROE % is 22.54% as of Dec. 2025. 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 MEC Co (MECGF) Overvalued in 2026?

Based on GuruFocus' analysis, MEC Co stock appears to be overvalued. The current stock price of $47.16 is trading 86.8% above its estimated GF Value™ of $25.24. GuruFocus considers MEC Co to be Significantly Overvalued.

Key valuation signals for MECGF:

  • ROE %: 22.54% (80% above median its 10-year median of 12.53)
  • GF Value™: $25.24 vs. price of $47.16 (86.8% above fair value)
  • GF Score™: 77/100
  • Industry Position: 317.8% above the Chemicals median (#105 of 1586)

No single metric tells the full story. See the MECGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


MEC Co Business Description

Other Exchanges 4971:Japan
Address 3-4-1, Kuise Minamishimmachi, Hyogo Prefecture, Amagasaki, JPN, 660-0822
MEC Co Ltd is a Japan-based chemical manufacturer. The company manufacture and sale of chemicals for electronic circuit boards and electronic components, as well as the sale of machinery and materials for electronic circuit boards. Its products are used in automobile, smartphone, and computer. Its products used in Chemicals for electronic substrates and AMALPHA : Resin-to-metal bonding technology from MEC.
77GF Score

Get the complete analysis for MECGF

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$47.16
Price
$25.24
GF Value