Shinnihon (TSE:1879) ROE %: 22.47% (As of Mar. 2026) — 81% Above Median


TSE:1879 Shinnihon Corp TSE:1879
84 GF Score
Price 円2,097.00
GF Value 円1,666.93
Valuation Modestly Overvalued
! 3 Warning Signs
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What is Shinnihon ROE %?

Shinnihon TSE:1879 +0.24% 84 ROE % is 22.47% as of Mar. 2026, which is 81% above its 10-year median of 12.43. GuruFocus rates TSE:1879 with a GF Score™ of 84/100 and a GF Value™ of 円1,666.93 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,738 Construction companies, Shinnihon ranks better than 69.62% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Shinnihon's annualized net income for the quarter that ended in Mar. 2026 was 円29,372 Mil. Shinnihon's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円130,732 Mil. Therefore, Shinnihon's annualized ROE % for the quarter that ended in Mar. 2026 was 22.47%.

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

TSE:1879' s ROE % Range Over the Past 10 Years
Min: 10.89   Med: 12.43   Max: 30.58
Current: 12.03

During the past 13 years, Shinnihon's highest ROE % was 30.58%. The lowest was 10.89%. And the median was 12.43%.

TSE:1879's ROE % is ranked better than
69.62% of 1738 companies
in the Construction industry
Industry Median: 6.715 vs TSE:1879: 12.03

Shinnihon  (TSE:1879) 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: Mar. 2026 )
=Net Income/Total Stockholders Equity
=29372/130732
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(29372 / 203540)*(203540 / 178783)*(178783 / 130732)
=Net Margin %*Asset Turnover*Equity Multiplier
=14.43 %*1.1385*1.3676
=ROA %*Equity Multiplier
=16.43 %*1.3676
=22.47 %

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: Mar. 2026 )
=Net Income/Total Stockholders Equity
=29372/130732
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (29372 / 38084) * (38084 / 37728) * (37728 / 203540) * (203540 / 178783) * (178783 / 130732)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7712 * 1.0094 * 18.54 % * 1.1385 * 1.3676
=22.47 %

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.


Shinnihon ROE % Related Terms


Shinnihon ROE % Historical Data

* Premium members only.

The historical data trend for Shinnihon'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.

Shinnihon ROE % Chart

Shinnihon Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.44 12.38 11.40 10.89 11.85

Shinnihon Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 20.11 8.69 8.09 8.53 22.47

TSE:1879 vs PWR, FIX, EME: ROE % Comparison

For the Engineering & Construction subindustry, Shinnihon'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.


Shinnihon ROE % vs Construction Industry

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

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


TSE:1879
84GF Score
Shinnihon Corp TSE:1879
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shinnihon ROE % Calculation

Shinnihon's annualized ROE % for the fiscal year that ended in Mar. 2026 is calculated as

ROE %=Net Income (A: Mar. 2026 )/( (Total Stockholders Equity (A: Mar. 2025 )+Total Stockholders Equity (A: Mar. 2026 ))/ count )
=15224/( (122313+134547)/ 2 )
=15224/128430
=11.85 %

Shinnihon's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=29372/( (126917+134547)/ 2 )
=29372/130732
=22.47 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 22.47% mean?
Shinnihon (TSE:1879) has a ROE % of 22.47% 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 Shinnihon and its competitors. This is 81% above median its historical median of 12.43. Over the past decade, Shinnihon's ROE % has ranged from 10.89 to 30.58. According to the industry distribution chart, Shinnihon ranks #528 out of 1738 companies in the Construction industry, placing it in the top 30.4%.
Is Shinnihon's ROE % too high?
Shinnihon's current ROE % of 22.47% is 81% above median its 10-year median of 12.43. Over the past 10 years, this metric has ranged from a low of 10.89 to a high of 30.58. The Construction industry median ROE % is 6.72. Shinnihon's value of 22.47% is 234.6% above this industry median. Based on the distribution chart, Shinnihon ranks #528 out of 1738 companies in the Construction industry, which is above the industry midpoint. Overall, Shinnihon has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shinnihon's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Shinnihon ranks #528 out of 1738 companies for ROE %. This puts Shinnihon in the upper half of its industry. The industry median ROE % is 6.72. Shinnihon's value of 22.47% is 234.6% above this benchmark. Historically, Shinnihon's own ROE % has ranged from 10.89 to 30.58 over the past decade. While the company's 10-year median is 12.43 vs. the industry median of 6.72, Shinnihon 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 Construction company?
The median ROE % among Construction companies is 6.72, based on 1,738 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. Shinnihon's current ROE % of 22.47% is 234.6% 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 Shinnihon and its competitors. For the Construction industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shinnihon's current ROE % is 22.47%, which is 81% above median its own 10-year median of 12.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinnihon stock overvalued right now?
Based on GuruFocus' analysis, Shinnihon (TSE:1879) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,666.93, compared to a current price of 円2,097.00 — trading 25.8% above its estimated fair value. The current ROE % is 22.47%, which is 81% above median its 10-year median of 12.43 and 234.6% above the Construction industry median of 6.72. Shinnihon's overall GF Score™ is 84/100 with 3 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 Shinnihon (TSE:1879), the current ROE % is 22.47% 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 Shinnihon (TSE:1879) Overvalued in 2026?

Based on GuruFocus' analysis, Shinnihon stock appears to be overvalued. The current stock price of 円2,097.00 is trading 25.8% above its estimated GF Value™ of 円1,666.93. GuruFocus considers Shinnihon to be Modestly Overvalued.

Key valuation signals for TSE:1879:

  • ROE %: 22.47% (81% above median its 10-year median of 12.43)
  • GF Value™: 円1,666.93 vs. price of 円2,097.00 (25.8% above fair value)
  • GF Score™: 84/100 with 3 warning signs
  • Industry Position: 234.6% above the Construction median (#528 of 1738)

No single metric tells the full story. See the TSE:1879 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shinnihon Business Description

Address 1-4-3 Hibino, Shin Nippon Building, Mihama-ku, Chiba, JPN, 261-0021
Shinnihon Corp is engaged in engineering and construction services. The company operates in two divisions namely Construction Division and Development Business Division. The construction division is engaged in the construction of joint housing, government office, hotel, office building, shopping center, shop, hospital/welfare facilities, and factories. The Development Business Division is engaged in Distribution and rental of condominium / detached house, planning and development business of commercial facilities, offices, and warehouses.
84GF Score

Get the complete analysis for TSE:1879

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

円2,097.00
Price
円1,666.93
GF Value