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Kaneshita Construction CoTSE:1897 56 ROE % is 1.37% as of Dec. 2025, which is 2% below its 10-year median of 1.40. GuruFocus rates TSE:1897 with a GF Score™ of 56/100 and a GF Value™ of 円2,502.03 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,747 Construction companies, Kaneshita Construction Co ranks worse than 71.61% on this metric.
The historical rank and industry rank for Kaneshita Construction Co's ROE % or its related term are showing as below:
TSE:1897'
s ROE % Range Over the Past 10 Years
Min: 0.27 Med: 1.4 Max: 2.79
Current: 1.25
During the past 13 years, Kaneshita Construction Co's highest ROE % was 2.79%. The lowest was 0.27%. And the median was 1.40%.
TSE:1897's ROE % is ranked worse than 71.61% of 1747
companies
in the Construction industry
Industry Median: 6.74
vs TSE:1897: 1.25
Kaneshita Construction Co (TSE:1897) 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 two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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 Engineering & Construction subindustry, Kaneshita Construction 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.
Kaneshita Construction Co ROE % vs Construction Industry
For the Construction industry and Industrials sector, Kaneshita Construction Co's ROE % distribution charts can be found below:
* The bar in red indicates where Kaneshita Construction 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 two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Kaneshita Construction Co (TSE:1897) has a ROE % of 1.37% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Kaneshita Construction Co and its competitors. This is near median its historical median of 1.40. Over the past decade, Kaneshita Construction Co's ROE % has ranged from 0.27 to 2.79. According to the industry distribution chart, Kaneshita Construction Co ranks #1251 out of 1747 companies in the Construction industry, placing it in the top 71.6%.
Is Kaneshita Construction Co's ROE % too high?
Kaneshita Construction Co's current ROE % of 1.37% is near median its 10-year median of 1.40. Over the past 10 years, this metric has ranged from a low of 0.27 to a high of 2.79. The Construction industry median ROE % is 6.74. Kaneshita Construction Co's value of 1.37% is 79.7% below this industry median. Based on the distribution chart, Kaneshita Construction Co ranks #1251 out of 1747 companies in the Construction industry, which is below the industry midpoint. Overall, Kaneshita Construction Co has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kaneshita Construction Co's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Kaneshita Construction Co ranks #1251 out of 1747 companies for ROE %. This places Kaneshita Construction Co in the lower half of its industry. The industry median ROE % is 6.74. Kaneshita Construction Co's value of 1.37% is 79.7% below this benchmark. Historically, Kaneshita Construction Co's own ROE % has ranged from 0.27 to 2.79 over the past decade. While the company's 10-year median is 1.40 vs. the industry median of 6.74, Kaneshita Construction Co has consistently been below 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 6.74, 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. Kaneshita Construction Co's current ROE % of 1.37% is 79.7% below 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 Kaneshita Construction Co and its competitors. For the Construction industry, the median ROE % is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kaneshita Construction Co's current ROE % is 1.37%, which is near median its own 10-year median of 1.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kaneshita Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Kaneshita Construction Co (TSE:1897) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,502.03, compared to a current price of 円3,110.00 — trading 24.3% above its estimated fair value. The current ROE % is 1.37%, which is near median its 10-year median of 1.40 and 79.7% below the Construction industry median of 6.74. Kaneshita Construction Co's overall GF Score™ is 56/100 with 4 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 Kaneshita Construction Co (TSE:1897), the current ROE % is 1.37% as of Dec. 2025. 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 Kaneshita Construction Co (TSE:1897) Overvalued in 2026?
Based on GuruFocus' analysis, Kaneshita Construction Co stock appears to be overvalued.
The current stock price of 円3,110.00 is trading 24.3% above its estimated GF Value™ of 円2,502.03.
GuruFocus considers Kaneshita Construction Co to be Modestly Overvalued.
Key valuation signals for TSE:1897:
ROE %: 1.37% (near median its 10-year median of 1.40)
GF Value™: 円2,502.03 vs. price of 円3,110.00 (24.3% above fair value)
Industry Position: 79.7% below the Construction median (#1251 of 1747)
No single metric tells the full story. See the TSE:1897 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kaneshita Construction Co Ltd is a construction company. It provides survey, research, design, and construction of civil engineering projects, construction supervision and intermediate treatment of industrial wastes.
56GF Score
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