Sumitomo Forestry CoSMFRF 87 ROE % is 15.29% as of Dec. 2025, which is 25% above its 10-year median of 12.21. GuruFocus rates SMFRF with a GF Score™ of 87/100 and a GF Value™ of $12.02 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 95 Homebuilding & Construction companies, Sumitomo Forestry Co ranks better than 66.32% on this metric.
The historical rank and industry rank for Sumitomo Forestry Co's ROE % or its related term are showing as below:
SMFRF'
s ROE % Range Over the Past 10 Years
Min: 3.98 Med: 12.21 Max: 21.31
Current: 10.95
During the past 13 years, Sumitomo Forestry Co's highest ROE % was 21.31%. The lowest was 3.98%. And the median was 12.21%.
SMFRF's ROE % is ranked better than 66.32% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 7.87
vs SMFRF: 10.95
Sumitomo Forestry Co (OTCPK:SMFRF) 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 (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.
* 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 Residential Construction subindustry, Sumitomo Forestry 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.
Sumitomo Forestry Co ROE % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Sumitomo Forestry Co's ROE % distribution charts can be found below:
* The bar in red indicates where Sumitomo Forestry 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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Sumitomo Forestry Co (SMFRF) has a ROE % of 15.29% 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 Sumitomo Forestry Co and its competitors. This is 25% above median its historical median of 12.21. Over the past decade, Sumitomo Forestry Co's ROE % has ranged from 3.98 to 21.31. According to the industry distribution chart, Sumitomo Forestry Co ranks #32 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 33.7%.
Is Sumitomo Forestry Co's ROE % too high?
Sumitomo Forestry Co's current ROE % of 15.29% is 25% above median its 10-year median of 12.21. Over the past 10 years, this metric has ranged from a low of 3.98 to a high of 21.31. The Homebuilding & Construction industry median ROE % is 7.87. Sumitomo Forestry Co's value of 15.29% is 94.3% above this industry median. Based on the distribution chart, Sumitomo Forestry Co ranks #32 out of 95 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Sumitomo Forestry Co has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Forestry Co's ROE % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Sumitomo Forestry Co ranks #32 out of 95 companies for ROE %. This puts Sumitomo Forestry Co in the upper half of its industry. The industry median ROE % is 7.87. Sumitomo Forestry Co's value of 15.29% is 94.3% above this benchmark. Historically, Sumitomo Forestry Co's own ROE % has ranged from 3.98 to 21.31 over the past decade. While the company's 10-year median is 12.21 vs. the industry median of 7.87, Sumitomo Forestry 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 Homebuilding & Construction company?
The median ROE % among Homebuilding & Construction companies is 7.87, based on 95 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. Sumitomo Forestry Co's current ROE % of 15.29% is 94.3% 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 Sumitomo Forestry Co and its competitors. For the Homebuilding & Construction industry, the median ROE % is 7.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Forestry Co's current ROE % is 15.29%, which is 25% above median its own 10-year median of 12.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Forestry Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Forestry Co (SMFRF) is currently considered Modestly Undervalued. The stock's GF Value™ is $12.02, compared to a current price of $8.55 — trading 28.9% below its estimated fair value. The current ROE % is 15.29%, which is 25% above median its 10-year median of 12.21 and 94.3% above the Homebuilding & Construction industry median of 7.87. Sumitomo Forestry Co's overall GF Score™ is 87/100 with 4 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 Sumitomo Forestry Co (SMFRF), the current ROE % is 15.29% 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 Sumitomo Forestry Co (SMFRF) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Forestry Co stock appears to be undervalued.
The current stock price of $8.55 is trading 28.9% below its estimated GF Value™ of $12.02.
GuruFocus considers Sumitomo Forestry Co to be Modestly Undervalued.
Key valuation signals for SMFRF:
ROE %: 15.29% (25% above median its 10-year median of 12.21)
GF Value™: $12.02 vs. price of $8.55 (28.9% below fair value)
Industry Position: 94.3% above the Homebuilding & Construction median (#32 of 95)
No single metric tells the full story. See the SMFRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Forestry Co Ltd is a Japan-based company engaged in the timber, housing, and environmental businesses. The company operates through four reportable segments: Timber Building Materials Business, Housing Business, Construction and Real Estate Business, and Resources and Environment Business. The Timber Building Materials Business purchases, manufactures, and sells timber and building materials. The Housing Business handles housing construction, renovation, and real estate brokerage. The Construction and Real Estate Business develops condominiums, apartment buildings, and commercial complexes. The Resources and Environment Business focuses on renewable energy and forestry resource operations. It generates the majority of revenue from the Construction and real estate business segment.
87GF Score
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