ZozoSRTTY +0.37%86 ROE % is 42.93% as of Mar. 2026, which is 27% below its 10-year median of 58.75. GuruFocus rates SRTTY with a GF Score™ of 86/100 and a GF Value™ of $8.85 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,097 Retail - Cyclical companies, Zozo ranks better than 94.8% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Zozo's annualized net income for the quarter that ended in Mar. 2026 was $276 Mil. Zozo's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $643 Mil. Therefore, Zozo's annualized ROE % for the quarter that ended in Mar. 2026 was 42.93%.
The historical rank and industry rank for Zozo's ROE % or its related term are showing as below:
SRTTY'
s ROE % Range Over the Past 10 Years
Min: 46.64 Med: 58.75 Max: 72.66
Current: 49.48
During the past 13 years, Zozo's highest ROE % was 72.66%. The lowest was 46.64%. And the median was 58.75%.
SRTTY's ROE % is ranked better than 94.8% of 1097
companies
in the Retail - Cyclical industry
Industry Median: 6.46
vs SRTTY: 49.48
Zozo (OTCPK:SRTTY) 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.
Zozo ROE % Related Terms
Zozo ROE % Historical Data
* Premium members only.
The historical data trend for Zozo'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 Internet Retail subindustry, Zozo'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.
Zozo ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Zozo's ROE % distribution charts can be found below:
* The bar in red indicates where Zozo'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.
Zozo (SRTTY) has a ROE % of 42.93% 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 Zozo and its competitors. This is 27% below median its historical median of 58.75. Over the past decade, Zozo's ROE % has ranged from 46.64 to 72.66. According to the industry distribution chart, Zozo ranks #57 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 5.2%.
Is Zozo's ROE % too high?
Zozo's current ROE % of 42.93% is 27% below median its 10-year median of 58.75. Over the past 10 years, this metric has ranged from a low of 46.64 to a high of 72.66. The Retail - Cyclical industry median ROE % is 6.46. Zozo's value of 42.93% is 564.6% above this industry median. Based on the distribution chart, Zozo ranks #57 out of 1097 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Zozo has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zozo's ROE % compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Zozo ranks #57 out of 1097 companies for ROE %. This places Zozo in the top 5% of its industry — outperforming the majority of peers. The industry median ROE % is 6.46. Zozo's value of 42.93% is 564.6% above this benchmark. Historically, Zozo's own ROE % has ranged from 46.64 to 72.66 over the past decade. While the company's 10-year median is 58.75 vs. the industry median of 6.46, Zozo 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 Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.46, based on 1,097 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. Zozo's current ROE % of 42.93% is 564.6% 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 Zozo and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zozo's current ROE % is 42.93%, which is 27% below median its own 10-year median of 58.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zozo stock overvalued right now?
Based on GuruFocus' analysis, Zozo (SRTTY) is currently considered Modestly Undervalued. The stock's GF Value™ is $8.85, compared to a current price of $6.76 — trading 23.6% below its estimated fair value. The current ROE % is 42.93%, which is 27% below median its 10-year median of 58.75 and 564.6% above the Retail - Cyclical industry median of 6.46. Zozo's overall GF Score™ is 86/100 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 Zozo (SRTTY), the current ROE % is 42.93% 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 Zozo (SRTTY) Overvalued in 2026?
Based on GuruFocus' analysis, Zozo stock appears to be undervalued.
The current stock price of $6.76 is trading 23.6% below its estimated GF Value™ of $8.85.
GuruFocus considers Zozo to be Modestly Undervalued.
Key valuation signals for SRTTY:
ROE %: 42.93% (27% below median its 10-year median of 58.75)
GF Value™: $8.85 vs. price of $6.76 (23.6% below fair value)
Industry Position: 564.6% above the Retail - Cyclical median (#57 of 1097)
No single metric tells the full story. See the SRTTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zozo, established in 1998 by Yusaku Maezawa, operates Zozotown, Japan's largest fashion e-commerce platform. Zozotown runs primarily on a consignment model, where brands stock products at Zozo's logistics bases and operate shops as tenants. As of 2025, Zozotown hosts over 11,000 brands and 12.5 million active users. Beyond its core domestic business, Zozo is expanding into adjacent categories such as skincare, cosmetics, and fragrance (near fashion), and internationally through Lyst, a UK-based luxury fashion platform acquired in 2025, and Zozofit, a body measurement app.
86GF Score
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