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.
Renesas Electronics ROE % Related Terms
Renesas Electronics ROE % Historical Data
* Premium members only.
The historical data trend for Renesas Electronics'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 Semiconductors subindustry, Renesas Electronics'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.
Renesas Electronics ROE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Renesas Electronics's ROE % distribution charts can be found below:
* The bar in red indicates where Renesas Electronics'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.
Renesas Electronics (MEX:RNEC N) has a ROE % of 10.85% 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 Renesas Electronics and its competitors. This is near median its historical median of 11.59. According to the industry distribution chart, Renesas Electronics ranks #663 out of 1004 companies in the Semiconductors industry, placing it in the top 66%.
Is Renesas Electronics' ROE % too high?
Renesas Electronics' current ROE % of 10.85% is near median its 10-year median of 11.59. The Semiconductors industry median ROE % is 4.55. Renesas Electronics' value of 10.85% is 138.5% above this industry median. Based on the distribution chart, Renesas Electronics ranks #663 out of 1004 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Renesas Electronics has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Renesas Electronics' ROE % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Renesas Electronics ranks #663 out of 1004 companies for ROE %. This places Renesas Electronics in the lower half of its industry. The industry median ROE % is 4.55. Renesas Electronics' value of 10.85% is 138.5% above this benchmark. While the company's 10-year median is 11.59 vs. the industry median of 4.55, Renesas Electronics 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 Semiconductors company?
The median ROE % among Semiconductors companies is 4.55, based on 1,004 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. Renesas Electronics's current ROE % of 10.85% is 138.5% 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 Renesas Electronics and its competitors. For the Semiconductors industry, the median ROE % is 4.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Renesas Electronics's current ROE % is 10.85%, which is near median its own 10-year median of 11.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renesas Electronics stock overvalued right now?
Renesas Electronics (MEX:RNEC N) has a current ROE % of 10.85%. The stock's GF Value™ is MXN148.58, compared to a current price of MXN305.03 — trading 105.3% above its estimated fair value. The current ROE % is 10.85%, which is near median its 10-year median of 11.59 and 138.5% above the Semiconductors industry median of 4.55. Renesas Electronics' overall GF Score™ is 74/100 with 6 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 Renesas Electronics (MEX:RNEC N), the current ROE % is 10.85% 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 Renesas Electronics (MEX:RNEC N) Overvalued in 2026?
Based on GuruFocus' analysis, Renesas Electronics stock appears to be overvalued.
The current stock price of MXN305.03 is trading 105.3% above its estimated GF Value™ of MXN148.58.
Key valuation signals for MEX:RNEC N:
ROE %: 10.85% (near median its 10-year median of 11.59)
GF Value™: MXN148.58 vs. price of MXN305.03 (105.3% above fair value)
Industry Position: 138.5% above the Semiconductors median (#663 of 1004)
No single metric tells the full story. See the MEX:RNEC N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renesas Electronics is a Japanese broad-based integrated device manufacturer involved in the design and manufacturing of microcontrollers and analog chips, used across automotive, industrial, enterprise, and consumer industries. Headquartered in Tokyo, the company was created through the combination of electronics business units from NEC Electronics, Mitsubishi, and Hitachi. The company's businesses are primarily focused in Asia, where they historically account for 70%-80% of its sales. Renesas is the third- and ninth-largest manufacturer of MCUs and power/analog devices, with a 17% and 3.5% market share, respectively, as of 2024.
74GF Score
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