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Hikari Food Service CoTSE:138A 20 ROE % is 19.19% as of May. 2026, which is 50% below its 10-year median of 38.65. GuruFocus rates TSE:138A with a GF Score™ of 20/100. The stock has 2 warning signs investors should review. Among 344 Restaurants companies, Hikari Food Service Co ranks better than 64.83% on this metric.
Hikari Food Service Co (TSE:138A) 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 (May. 2026) net income data. The Revenue data used here is four times the quarterly (May. 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.
* 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 Restaurants subindustry, Hikari Food Service 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.
Hikari Food Service Co ROE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Hikari Food Service Co's ROE % distribution charts can be found below:
* The bar in red indicates where Hikari Food Service 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 (May. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Hikari Food Service Co (TSE:138A) has a ROE % of 19.19% as of May. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Hikari Food Service Co and its competitors. This is 50% below median its historical median of 38.65. Over the past decade, Hikari Food Service Co's ROE % has ranged from 8.01 to 76.33. According to the industry distribution chart, Hikari Food Service Co ranks #121 out of 344 companies in the Restaurants industry, placing it in the top 35.2%.
Is Hikari Food Service Co's ROE % too high?
Hikari Food Service Co's current ROE % of 19.19% is 50% below median its 10-year median of 38.65. Over the past 10 years, this metric has ranged from a low of 8.01 to a high of 76.33. The Restaurants industry median ROE % is 7.15. Hikari Food Service Co's value of 19.19% is 168.6% above this industry median. Based on the distribution chart, Hikari Food Service Co ranks #121 out of 344 companies in the Restaurants industry, which is above the industry midpoint. Overall, Hikari Food Service Co has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Hikari Food Service Co's ROE % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Hikari Food Service Co ranks #121 out of 344 companies for ROE %. This puts Hikari Food Service Co in the upper half of its industry. The industry median ROE % is 7.15. Hikari Food Service Co's value of 19.19% is 168.6% above this benchmark. Historically, Hikari Food Service Co's own ROE % has ranged from 8.01 to 76.33 over the past decade. While the company's 10-year median is 38.65 vs. the industry median of 7.15, Hikari Food Service 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 Restaurants company?
The median ROE % among Restaurants companies is 7.15, based on 344 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. Hikari Food Service Co's current ROE % of 19.19% is 168.6% 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 Hikari Food Service Co and its competitors. For the Restaurants industry, the median ROE % is 7.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Food Service Co's current ROE % is 19.19%, which is 50% below median its own 10-year median of 38.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Food Service Co stock overvalued right now?
Hikari Food Service Co (TSE:138A) has a current ROE % of 19.19%. The current ROE % is 19.19%, which is 50% below median its 10-year median of 38.65 and 168.6% above the Restaurants industry median of 7.15. Hikari Food Service Co's overall GF Score™ is 20/100 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 Hikari Food Service Co (TSE:138A), the current ROE % is 19.19% as of May. 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.
Hikari Food Service Co Ltd is engaged in the restaurant business in Japan. It mainly provides standing bar-style izakaya restaurants. Some of its restaurants are, Daikoku, Fish Camellia, Kanayamaya Family, and Yakiniku Delux.
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