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Murata Manufacturing CoMRAAY -0.53%70 ROE % is 11.39% as of Mar. 2026, which is 5% above its 10-year median of 10.86. GuruFocus rates MRAAY with a GF Score™ of 70/100 and a GF Value™ of $11.62 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,428 Hardware companies, Murata Manufacturing Co ranks better than 66.1% on this metric.
The historical rank and industry rank for Murata Manufacturing Co's ROE % or its related term are showing as below:
MRAAY'
s ROE % Range Over the Past 10 Years
Min: 7.36 Med: 10.86 Max: 15.1
Current: 8.98
During the past 13 years, Murata Manufacturing Co's highest ROE % was 15.10%. The lowest was 7.36%. And the median was 10.86%.
MRAAY's ROE % is ranked better than 66.1% of 2428
companies
in the Hardware industry
Industry Median: 4.675
vs MRAAY: 8.98
Murata Manufacturing Co (OTCPK:MRAAY) 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 Electronic Components subindustry, Murata Manufacturing 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.
Murata Manufacturing Co ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Murata Manufacturing Co's ROE % distribution charts can be found below:
* The bar in red indicates where Murata Manufacturing Co'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.
Murata Manufacturing Co (MRAAY) has a ROE % of 11.39% 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 Murata Manufacturing Co and its competitors. This is near median its historical median of 10.86. Over the past decade, Murata Manufacturing Co's ROE % has ranged from 7.36 to 15.10. According to the industry distribution chart, Murata Manufacturing Co ranks #823 out of 2428 companies in the Hardware industry, placing it in the top 33.9%.
Is Murata Manufacturing Co's ROE % too high?
Murata Manufacturing Co's current ROE % of 11.39% is near median its 10-year median of 10.86. Over the past 10 years, this metric has ranged from a low of 7.36 to a high of 15.10. The Hardware industry median ROE % is 4.68. Murata Manufacturing Co's value of 11.39% is 143.6% above this industry median. Based on the distribution chart, Murata Manufacturing Co ranks #823 out of 2428 companies in the Hardware industry, which is above the industry midpoint. Overall, Murata Manufacturing Co has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Murata Manufacturing Co's ROE % compare to APH and GLW?
According to the Hardware industry distribution chart, Murata Manufacturing Co ranks #823 out of 2428 companies for ROE %. This puts Murata Manufacturing Co in the upper half of its industry. The industry median ROE % is 4.68. Murata Manufacturing Co's value of 11.39% is 143.6% above this benchmark. Historically, Murata Manufacturing Co's own ROE % has ranged from 7.36 to 15.10 over the past decade. While the company's 10-year median is 10.86 vs. the industry median of 4.68, Murata Manufacturing 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 Hardware company?
The median ROE % among Hardware companies is 4.68, based on 2,428 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. Murata Manufacturing Co's current ROE % of 11.39% is 143.6% 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 Murata Manufacturing Co and its competitors. For the Hardware industry, the median ROE % is 4.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Murata Manufacturing Co's current ROE % is 11.39%, which is near median its own 10-year median of 10.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Murata Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Murata Manufacturing Co (MRAAY) is currently considered Significantly Overvalued. The stock's GF Value™ is $11.62, compared to a current price of $25.52 — trading 119.6% above its estimated fair value. The current ROE % is 11.39%, which is near median its 10-year median of 10.86 and 143.6% above the Hardware industry median of 4.68. Murata Manufacturing Co's overall GF Score™ is 70/100 with 2 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 Murata Manufacturing Co (MRAAY), the current ROE % is 11.39% 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 Murata Manufacturing Co (MRAAY) Overvalued in 2026?
Based on GuruFocus' analysis, Murata Manufacturing Co stock appears to be overvalued.
The current stock price of $25.52 is trading 119.6% above its estimated GF Value™ of $11.62.
GuruFocus considers Murata Manufacturing Co to be Significantly Overvalued.
Key valuation signals for MRAAY:
ROE %: 11.39% (near median its 10-year median of 10.86)
GF Value™: $11.62 vs. price of $25.52 (119.6% above fair value)
Industry Position: 143.6% above the Hardware median (#823 of 2428)
No single metric tells the full story. See the MRAAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Murata Manufacturing produces passive components for electronic devices. Passive components are necessary for all electronic circuits, used to enable wireless communication, store electricity and handle electric flow, remove electromagnetic noise from circuits, and so on. Thus, passive components are imperative for electronic circuits. For instance, one high-end smartphone contains more than 1,000 passive components. Murata Manufacturing is the world's leading supplier of passive components, such as MLCC and SAW filters.
70GF Score
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