Neo Home Co (TSE:172A) ROE %: 28.79% (As of Jan. 2026) — 408% Above Median


TSE:172A Neo Home Co Ltd TSE:172A
22 GF Score
Price 円2,234.00
! 5 Warning Signs
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What is Neo Home Co ROE %?

Neo Home Co TSE:172A 22 ROE % is 28.79% as of Jan. 2026, which is 408% above its 10-year median of 5.67. GuruFocus rates TSE:172A with a GF Score™ of 22/100. The stock has 5 warning signs investors should review.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Neo Home Co's annualized net income for the quarter that ended in Jan. 2026 was 円85 Mil. Neo Home Co's average Total Stockholders Equity over the quarter that ended in Jan. 2026 was 円294 Mil. Therefore, Neo Home Co's annualized ROE % for the quarter that ended in Jan. 2026 was 28.79%.

The historical rank and industry rank for Neo Home Co's ROE % or its related term are showing as below:

TSE:172A' s ROE % Range Over the Past 10 Years
Min: 3.79   Med: 5.67   Max: 26.16
Current: 26.16

During the past 4 years, Neo Home Co's highest ROE % was 26.16%. The lowest was 3.79%. And the median was 5.67%.

TSE:172A's ROE % is not ranked
in the Real Estate industry.
Industry Median: 3.96 vs TSE:172A: 26.16

Neo Home Co  (TSE:172A) 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: Jan. 2026 )
=Net Income/Total Stockholders Equity
=84.774/294.467
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(84.774 / 2567.742)*(2567.742 / 1375.2475)*(1375.2475 / 294.467)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.3 %*1.8671*4.6703
=ROA %*Equity Multiplier
=6.16 %*4.6703
=28.79 %

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: Jan. 2026 )
=Net Income/Total Stockholders Equity
=84.774/294.467
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (84.774 / 134.354) * (134.354 / 149.396) * (149.396 / 2567.742) * (2567.742 / 1375.2475) * (1375.2475 / 294.467)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.631 * 0.8993 * 5.82 % * 1.8671 * 4.6703
=28.79 %

Note: The net income data used here is two times the semi-annual (Jan. 2026) net income data. The Revenue data used here is two times the semi-annual (Jan. 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.


Neo Home Co ROE % Related Terms


Neo Home Co ROE % Historical Data

* Premium members only.

The historical data trend for Neo Home 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.

Neo Home Co ROE % Chart

Neo Home Co Annual Data
Trend Jul22 Jul23 Jul24 Jul25
ROE %
17.21 3.97 7.36 3.79

Neo Home Co Semi-Annual Data
Jul22 Jul23 Jan24 Jul24 Jan25 Jul25 Jan26
ROE % Get a 7-Day Free Trial -1.01 15.14 -15.81 23.37 28.79

TSE:172A vs : ROE % Comparison

For the Real Estate - Development subindustry, Neo Home 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.


Neo Home Co ROE % vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Neo Home Co's ROE % distribution charts can be found below:

* The bar in red indicates where Neo Home Co's ROE % falls into.


TSE:172A
22GF Score
Neo Home Co Ltd TSE:172A
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Neo Home Co ROE % Calculation

Neo Home Co's annualized ROE % for the fiscal year that ended in Jul. 2025 is calculated as

ROE %=Net Income (A: Jul. 2025 )/( (Total Stockholders Equity (A: Jul. 2024 )+Total Stockholders Equity (A: Jul. 2025 ))/ count )
=10.17/( (263.102+273.273)/ 2 )
=10.17/268.1875
=3.79 %

Neo Home Co's annualized ROE % for the quarter that ended in Jan. 2026 is calculated as

ROE %=Net Income (Q: Jan. 2026 )/( (Total Stockholders Equity (Q: Jul. 2025 )+Total Stockholders Equity (Q: Jan. 2026 ))/ count )
=84.774/( (273.273+315.661)/ 2 )
=84.774/294.467
=28.79 %

* 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 two times the semi-annual (Jan. 2026) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 28.79% mean?
Neo Home Co (TSE:172A) has a ROE % of 28.79% as of Jan. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Neo Home Co and its competitors. This is 408% above median its historical median of 5.67. Over the past decade, Neo Home Co's ROE % has ranged from 3.79 to 26.16.
Is Neo Home Co's ROE % too high?
Neo Home Co's current ROE % of 28.79% is 408% above median its 10-year median of 5.67. Over the past 10 years, this metric has ranged from a low of 3.79 to a high of 26.16. The Real Estate industry median ROE % is 3.96. Neo Home Co's value of 28.79% is 627% above this industry median. Overall, Neo Home Co has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Neo Home Co's ROE % compare to ?
Neo Home Co's ROE % of 28.79% can be compared against companies in the Real Estate industry. The industry median ROE % is 3.96. Neo Home Co's value of 28.79% is 627% above this benchmark. Historically, Neo Home Co's own ROE % has ranged from 3.79 to 26.16 over the past decade. While the company's 10-year median is 5.67 vs. the industry median of 3.96, Neo Home 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 Real Estate company?
The median ROE % among Real Estate companies is 3.96, based on 1,735 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. Neo Home Co's current ROE % of 28.79% is 627% 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 Neo Home Co and its competitors. For the Real Estate industry, the median ROE % is 3.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neo Home Co's current ROE % is 28.79%, which is 408% above median its own 10-year median of 5.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neo Home Co stock overvalued right now?
Neo Home Co (TSE:172A) has a current ROE % of 28.79%. The current ROE % is 28.79%, which is 408% above median its 10-year median of 5.67 and 627% above the Real Estate industry median of 3.96. Neo Home Co's overall GF Score™ is 22/100 with 5 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 Neo Home Co (TSE:172A), the current ROE % is 28.79% as of Jan. 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.

Neo Home Co Business Description

Comparable Companies
Address 5-5-10 Tamukae, Kumamoto Minami-ku, Kumamoto, JPN, 862-0962
Neo Home Co Ltd is engaged in designing and selling single-family (detached) homes, mainly planned ones.
22GF Score

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

円2,234.00
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