SECOM CoSOMLF 79 ROE % is 10.53% as of Mar. 2026, which is 21% above its 10-year median of 8.70. GuruFocus rates SOMLF with a GF Score™ of 79/100 and a GF Value™ of $36.09 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,058 Business Services companies, SECOM Co ranks better than 53.5% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. SECOM Co's annualized net income for the quarter that ended in Mar. 2026 was $862 Mil. SECOM Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $8,187 Mil. Therefore, SECOM Co's annualized ROE % for the quarter that ended in Mar. 2026 was 10.53%.
The historical rank and industry rank for SECOM Co's ROE % or its related term are showing as below:
SOMLF'
s ROE % Range Over the Past 10 Years
Min: 7.05 Med: 8.7 Max: 9.76
Current: 8.87
During the past 13 years, SECOM Co's highest ROE % was 9.76%. The lowest was 7.05%. And the median was 8.70%.
SOMLF's ROE % is ranked better than 53.5% of 1058
companies
in the Business Services industry
Industry Median: 8.06
vs SOMLF: 8.87
SECOM Co (OTCPK:SOMLF) 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.
SECOM Co ROE % Related Terms
SECOM Co ROE % Historical Data
* Premium members only.
The historical data trend for SECOM 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.
For the Security & Protection Services subindustry, SECOM 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.
SECOM Co ROE % vs Business Services Industry
For the Business Services industry and Industrials sector, SECOM Co's ROE % distribution charts can be found below:
* The bar in red indicates where SECOM 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.
SECOM Co (SOMLF) has a ROE % of 10.53% 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 SECOM Co and its competitors. This is 21% above median its historical median of 8.70. Over the past decade, SECOM Co's ROE % has ranged from 7.05 to 9.76. According to the industry distribution chart, SECOM Co ranks #492 out of 1058 companies in the Business Services industry, placing it in the top 46.5%.
Is SECOM Co's ROE % too high?
SECOM Co's current ROE % of 10.53% is 21% above median its 10-year median of 8.70. Over the past 10 years, this metric has ranged from a low of 7.05 to a high of 9.76. The Business Services industry median ROE % is 8.06. SECOM Co's value of 10.53% is 30.6% above this industry median. Based on the distribution chart, SECOM Co ranks #492 out of 1058 companies in the Business Services industry, which is above the industry midpoint. Overall, SECOM Co has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SECOM Co's ROE % compare to ALLE and MSA?
According to the Business Services industry distribution chart, SECOM Co ranks #492 out of 1058 companies for ROE %. This puts SECOM Co in the upper half of its industry. The industry median ROE % is 8.06. SECOM Co's value of 10.53% is 30.6% above this benchmark. Historically, SECOM Co's own ROE % has ranged from 7.05 to 9.76 over the past decade. While the company's 10-year median is 8.70 vs. the industry median of 8.06, SECOM 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 Business Services company?
The median ROE % among Business Services companies is 8.06, based on 1,058 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. SECOM Co's current ROE % of 10.53% is 30.6% 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 SECOM Co and its competitors. For the Business Services industry, the median ROE % is 8.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SECOM Co's current ROE % is 10.53%, which is 21% above median its own 10-year median of 8.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SECOM Co stock overvalued right now?
Based on GuruFocus' analysis, SECOM Co (SOMLF) is currently considered Modestly Overvalued. The stock's GF Value™ is $36.09, compared to a current price of $40.05 — trading 11% above its estimated fair value. The current ROE % is 10.53%, which is 21% above median its 10-year median of 8.70 and 30.6% above the Business Services industry median of 8.06. SECOM Co's overall GF Score™ is 79/100 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 SECOM Co (SOMLF), the current ROE % is 10.53% 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 SECOM Co (SOMLF) Overvalued in 2026?
Based on GuruFocus' analysis, SECOM Co stock appears to be overvalued.
The current stock price of $40.05 is trading 11% above its estimated GF Value™ of $36.09.
GuruFocus considers SECOM Co to be Modestly Overvalued.
Key valuation signals for SOMLF:
ROE %: 10.53% (21% above median its 10-year median of 8.70)
GF Value™: $36.09 vs. price of $40.05 (11% above fair value)
Industry Position: 30.6% above the Business Services median (#492 of 1058)
No single metric tells the full story. See the SOMLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SECOM Co Ltd is a provider of security services and surveillance systems. The company operates seven business segments. BPO ICT segment provides information security, disaster response, data center, and EPO services. Disaster Prevention supplies fire alarms, extinguishing systems, and other equipment for offices, plants, tunnels, cultural properties, ships, and homes. Geospatial Information Services offers mapping and related services to governments in Japan and abroad. Insurance designs products reflecting risk reduction and specialized health coverage. Medical Services covers home care, nursing, senior residences, medical records, and equipment sales. Security Services delivers centralized systems for safety and monitoring. Others include real estate leasing and construction support.
79GF Score
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