Sumitomo Electric IndustriesSMTOY -4.56%76 ROE % is 12.71% as of Dec. 2025, which is 70% above its 10-year median of 7.47. GuruFocus rates SMTOY with a GF Score™ of 76/100 and a GF Value™ of $18.81 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,308 Vehicles & Parts companies, Sumitomo Electric Industries ranks better than 82.11% on this metric.
The historical rank and industry rank for Sumitomo Electric Industries's ROE % or its related term are showing as below:
SMTOY'
s ROE % Range Over the Past 10 Years
Min: 3.58 Med: 7.47 Max: 15.18
Current: 15.18
During the past 13 years, Sumitomo Electric Industries's highest ROE % was 15.18%. The lowest was 3.58%. And the median was 7.47%.
SMTOY's ROE % is ranked better than 82.11% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 6.62
vs SMTOY: 15.18
Sumitomo Electric Industries (OTCPK:SMTOY) 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.
Sumitomo Electric Industries ROE % Related Terms
Sumitomo Electric Industries ROE % Historical Data
* 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 Auto Parts subindustry, Sumitomo Electric 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.
Sumitomo Electric Industries ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sumitomo Electric Industries's ROE % distribution charts can be found below:
* The bar in red indicates where Sumitomo Electric 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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Sumitomo Electric Industries (SMTOY) has a ROE % of 12.71% 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 Electric Industries and its competitors. This is 70% above median its historical median of 7.47. Over the past decade, Sumitomo Electric Industries' ROE % has ranged from 3.58 to 15.18. According to the industry distribution chart, Sumitomo Electric Industries ranks #234 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 17.9%.
Is Sumitomo Electric Industries' ROE % too high?
Sumitomo Electric Industries' current ROE % of 12.71% is 70% above median its 10-year median of 7.47. Over the past 10 years, this metric has ranged from a low of 3.58 to a high of 15.18. The Vehicles & Parts industry median ROE % is 6.62. Sumitomo Electric Industries' value of 12.71% is 92% above this industry median. Based on the distribution chart, Sumitomo Electric Industries ranks #234 out of 1308 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Sumitomo Electric Industries has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Electric Industries' ROE % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Sumitomo Electric Industries ranks #234 out of 1308 companies for ROE %. This places Sumitomo Electric Industries in the top 18% of its industry — outperforming the majority of peers. The industry median ROE % is 6.62. Sumitomo Electric Industries' value of 12.71% is 92% above this benchmark. Historically, Sumitomo Electric Industries' own ROE % has ranged from 3.58 to 15.18 over the past decade. While the company's 10-year median is 7.47 vs. the industry median of 6.62, Sumitomo Electric 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 a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 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 Electric Industries's current ROE % of 12.71% is 92% 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 Electric Industries and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Electric Industries's current ROE % is 12.71%, which is 70% above median its own 10-year median of 7.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Electric Industries stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Electric Industries (SMTOY) is currently considered Significantly Overvalued. The stock's GF Value™ is $18.81, compared to a current price of $75.18 — trading 299.7% above its estimated fair value. The current ROE % is 12.71%, which is 70% above median its 10-year median of 7.47 and 92% above the Vehicles & Parts industry median of 6.62. Sumitomo Electric Industries' overall GF Score™ is 76/100 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 Electric Industries (SMTOY), the current ROE % is 12.71% 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 Electric Industries (SMTOY) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Electric Industries stock appears to be overvalued.
The current stock price of $75.18 is trading 299.7% above its estimated GF Value™ of $18.81.
GuruFocus considers Sumitomo Electric Industries to be Significantly Overvalued.
Key valuation signals for SMTOY:
ROE %: 12.71% (70% above median its 10-year median of 7.47)
GF Value™: $18.81 vs. price of $75.18 (299.7% above fair value)
Industry Position: 92% above the Vehicles & Parts median (#234 of 1308)
No single metric tells the full story. See the SMTOY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Electric Industries Ltd manufactures and sells electric wires and cables, and other products. The company operates through five segments. The Automotive related business covers wire harnesses, anti-vibration rubber, hoses, electrical parts, and traffic control systems. The Electronics related business provides electronic wires, flexible printed circuits, fluoropolymer products, and metal components. The Environment and Energy related business handles power transmission equipment, substation systems, vacuum and beam equipment, and conductive products. The Industrial Materials business includes steel wire, tools, optical components, and sintered parts. The Information and Communication business offers fiber optic cables, communication equipment, and optical devices.
76GF Score
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