KITA KOUDENSHA (SSE:1734) ROE %: Negative Equity% (As of Dec. 2023)

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SSE:1734 KITA KOUDENSHA Corp SSE:1734
12 GF Score
Price 円657.00
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What is KITA KOUDENSHA ROE %?

KITA KOUDENSHA SSE:1734 12 ROE % is Negative Equity% as of Dec. 2023. GuruFocus rates SSE:1734 with a GF Score™ of 12/100.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. KITA KOUDENSHA's annualized net income for the quarter that ended in Dec. 2023 was 円2,231 Mil. KITA KOUDENSHA's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was 円-2,125 Mil. Therefore, KITA KOUDENSHA's annualized ROE % for the quarter that ended in Dec. 2023 was Negative Equity%.

The historical rank and industry rank for KITA KOUDENSHA's ROE % or its related term are showing as below:

SSE:1734's ROE % is not ranked *
in the Construction industry.
Industry Median: 6.75
* Ranked among companies with meaningful ROE % only.

KITA KOUDENSHA  (SSE:1734) 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:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=2231.292/-2124.5955
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2231.292 / 17592.648)*(17592.648 / 7508.839)*(7508.839 / -2124.5955)
=Net Margin %*Asset Turnover*Equity Multiplier
=12.68 %*2.3429*N/A
=ROA %*Equity Multiplier
=29.71 %*N/A
=Negative Equity %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=2231.292/-2124.5955
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2231.292 / 2363.916) * (2363.916 / 2386.968) * (2386.968 / 17592.648) * (17592.648 / 7508.839) * (7508.839 / -2124.5955)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9439 * 0.9903 * 13.57 % * 2.3429 * N/A
=Negative Equity %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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.


KITA KOUDENSHA ROE % Related Terms


KITA KOUDENSHA ROE % Historical Data

* Premium members only.

The historical data trend for KITA KOUDENSHA'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.

KITA KOUDENSHA ROE % Chart

KITA KOUDENSHA Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.53 5.18 -68.67 -168.02 0.00

KITA KOUDENSHA Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 Negative Equity Negative Equity Negative Equity

SSE:1734 vs PWR, J: ROE % Comparison

For the Engineering & Construction subindustry, KITA KOUDENSHA'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.


KITA KOUDENSHA ROE % vs Construction Industry

For the Construction industry and Industrials sector, KITA KOUDENSHA's ROE % distribution charts can be found below:

* The bar in red indicates where KITA KOUDENSHA's ROE % falls into.


SSE:1734
12GF Score
KITA KOUDENSHA Corp SSE:1734
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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KITA KOUDENSHA ROE % Calculation

KITA KOUDENSHA's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %=Net Income (A: Mar. 2023 )/( (Total Stockholders Equity (A: Mar. 2022 )+Total Stockholders Equity (A: Mar. 2023 ))/ count )
=-2880.902/( (208.135+-2638.815)/ 2 )
=-2880.902/-1215.34
=N/A %

KITA KOUDENSHA's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=2231.292/( (-2404.447+-1844.744)/ 2 )
=2231.292/-2124.5955
=Negative Equity %

* 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. 2023) net income data. ROE % is displayed in the 30-year financial page.

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of Negative Equity% mean?
KITA KOUDENSHA (SSE:1734) has a ROE % of Negative Equity% as of Dec. 2023. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on KITA KOUDENSHA and its competitors.
Is KITA KOUDENSHA's ROE % too high?
KITA KOUDENSHA's current ROE % is Negative Equity%. Overall, KITA KOUDENSHA has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does KITA KOUDENSHA's ROE % compare to PWR and J?
KITA KOUDENSHA's ROE % of Negative Equity% can be compared against companies in the Construction industry. The industry median ROE % is 6.75. 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 Construction company?
The median ROE % among Construction companies is 6.75, based on 1,747 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. 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 KITA KOUDENSHA and its competitors. For the Construction industry, the median ROE % is 6.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KITA KOUDENSHA's current ROE % is Negative Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KITA KOUDENSHA stock overvalued right now?
KITA KOUDENSHA (SSE:1734) has a current ROE % of Negative Equity%. The current ROE % is Negative Equity%. KITA KOUDENSHA's overall GF Score™ is 12/100. 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 KITA KOUDENSHA (SSE:1734), the current ROE % is Negative Equity% as of Dec. 2023. 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.

KITA KOUDENSHA Business Description

Address 2-10, Kita 11-jo Nishi 23-chome, Chuo-ku Sapporo, Hokkaido, JPN, 060-0011
KITA KOUDENSHA Corp is engaged in the indoor wiring and power-related construction operations. The company undertakes projects for the construction of transmission lines, underground transmission lines, communication lines. It has an indoor wiring construction project, power related construction project and an industrial equipment business which include sales of power facility equipment, low voltage generator cars, electric wires, and piping materials, information communication systems.
12GF Score

Get the complete analysis for SSE:1734

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円657.00
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