Asahi Kogyosha CoTSE:1975 +1.39%67 ROE % is 36.42% as of Mar. 2026, which is 285% above its 10-year median of 9.45. GuruFocus rates TSE:1975 with a GF Score™ of 67/100 and a GF Value™ of 円2,077.91 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,738 Construction companies, Asahi Kogyosha Co ranks better than 85.27% on this metric.
The historical rank and industry rank for Asahi Kogyosha Co's ROE % or its related term are showing as below:
TSE:1975'
s ROE % Range Over the Past 10 Years
Min: 5.47 Med: 9.45 Max: 20.72
Current: 20.72
During the past 13 years, Asahi Kogyosha Co's highest ROE % was 20.72%. The lowest was 5.47%. And the median was 9.45%.
TSE:1975's ROE % is ranked better than 85.27% of 1738
companies
in the Construction industry
Industry Median: 6.715
vs TSE:1975: 20.72
Asahi Kogyosha Co (TSE:1975) 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 (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.
Asahi Kogyosha Co ROE % Related Terms
Asahi Kogyosha Co ROE % Historical Data
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The historical data trend for Asahi Kogyosha 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.
For the Engineering & Construction subindustry, Asahi Kogyosha 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.
Asahi Kogyosha Co ROE % vs Construction Industry
For the Construction industry and Industrials sector, Asahi Kogyosha Co's ROE % distribution charts can be found below:
* The bar in red indicates where Asahi Kogyosha 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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Asahi Kogyosha Co (TSE:1975) has a ROE % of 36.42% 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 Asahi Kogyosha Co and its competitors. This is 285% above median its historical median of 9.45. Over the past decade, Asahi Kogyosha Co's ROE % has ranged from 5.47 to 20.72. According to the industry distribution chart, Asahi Kogyosha Co ranks #256 out of 1738 companies in the Construction industry, placing it in the top 14.7%.
Is Asahi Kogyosha Co's ROE % too high?
Asahi Kogyosha Co's current ROE % of 36.42% is 285% above median its 10-year median of 9.45. Over the past 10 years, this metric has ranged from a low of 5.47 to a high of 20.72. The Construction industry median ROE % is 6.72. Asahi Kogyosha Co's value of 36.42% is 442.4% above this industry median. Based on the distribution chart, Asahi Kogyosha Co ranks #256 out of 1738 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Asahi Kogyosha Co has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Asahi Kogyosha Co's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Asahi Kogyosha Co ranks #256 out of 1738 companies for ROE %. This places Asahi Kogyosha Co in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 6.72. Asahi Kogyosha Co's value of 36.42% is 442.4% above this benchmark. Historically, Asahi Kogyosha Co's own ROE % has ranged from 5.47 to 20.72 over the past decade. While the company's 10-year median is 9.45 vs. the industry median of 6.72, Asahi Kogyosha 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 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. Asahi Kogyosha Co's current ROE % of 36.42% is 442.4% 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 Asahi Kogyosha Co 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. Asahi Kogyosha Co's current ROE % is 36.42%, which is 285% above median its own 10-year median of 9.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asahi Kogyosha Co stock overvalued right now?
Based on GuruFocus' analysis, Asahi Kogyosha Co (TSE:1975) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,077.91, compared to a current price of 円4,385.00 — trading 111% above its estimated fair value. The current ROE % is 36.42%, which is 285% above median its 10-year median of 9.45 and 442.4% above the Construction industry median of 6.72. Asahi Kogyosha Co's overall GF Score™ is 67/100 with 1 warning sign 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 Asahi Kogyosha Co (TSE:1975), the current ROE % is 36.42% 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 Asahi Kogyosha Co (TSE:1975) Overvalued in 2026?
Based on GuruFocus' analysis, Asahi Kogyosha Co stock appears to be overvalued.
The current stock price of 円4,385.00 is trading 111% above its estimated GF Value™ of 円2,077.91.
GuruFocus considers Asahi Kogyosha Co to be Significantly Overvalued.
Key valuation signals for TSE:1975:
ROE %: 36.42% (285% above median its 10-year median of 9.45)
GF Value™: 円2,077.91 vs. price of 円4,385.00 (111% above fair value)
Industry Position: 442.4% above the Construction median (#256 of 1738)
No single metric tells the full story. See the TSE:1975 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Asahi Kogyosha Co Ltd is a Japan-based company. It mainly designs, supervises, and constructs air conditioning and sanitary equipment. Along with its subsidiaries, the company operates in the following reportable segments; Facility construction and Equipment manufacturing and sales. A majority of its revenue is derived from the facility construction business, which is involved in the planning, design, and construction of air conditioning, water supply, drainage, and sanitary facilities. The equipment manufacturing and sales business is engaged in the manufacturing and sale of environmental equipment for the semiconductor, FPD, and electronics industries and also manufactures air conditioning-related equipment in cooperation with construction companies.
67GF Score
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