Gakujo CoTSE:2301 -0.19%79 ROE % is 4.23% as of Apr. 2026, which is 66% below its 10-year median of 12.44. GuruFocus rates TSE:2301 with a GF Score™ of 79/100 and a GF Value™ of 円2,298.20 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,058 Business Services companies, Gakujo Co ranks better than 64.08% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Gakujo Co's annualized net income for the quarter that ended in Apr. 2026 was 円626 Mil. Gakujo Co's average Total Stockholders Equity over the quarter that ended in Apr. 2026 was 円14,806 Mil. Therefore, Gakujo Co's annualized ROE % for the quarter that ended in Apr. 2026 was 4.23%.
The historical rank and industry rank for Gakujo Co's ROE % or its related term are showing as below:
TSE:2301'
s ROE % Range Over the Past 10 Years
Min: 8.51 Med: 12.44 Max: 16.08
Current: 12.05
During the past 13 years, Gakujo Co's highest ROE % was 16.08%. The lowest was 8.51%. And the median was 12.44%.
TSE:2301's ROE % is ranked better than 64.08% of 1058
companies
in the Business Services industry
Industry Median: 8.015
vs TSE:2301: 12.05
Gakujo Co (TSE:2301) 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 (Apr. 2026) net income data. The Revenue data used here is two times the semi-annual (Apr. 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.
Gakujo Co ROE % Related Terms
Gakujo Co ROE % Historical Data
* Premium members only.
The historical data trend for Gakujo 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 Staffing & Employment Services subindustry, Gakujo 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.
Gakujo Co ROE % vs Business Services Industry
For the Business Services industry and Industrials sector, Gakujo Co's ROE % distribution charts can be found below:
* The bar in red indicates where Gakujo 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 (Apr. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Gakujo Co (TSE:2301) has a ROE % of 4.23% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gakujo Co and its competitors. This is 66% below median its historical median of 12.44. Over the past decade, Gakujo Co's ROE % has ranged from 8.51 to 16.08. According to the industry distribution chart, Gakujo Co ranks #380 out of 1058 companies in the Business Services industry, placing it in the top 35.9%.
Is Gakujo Co's ROE % too high?
Gakujo Co's current ROE % of 4.23% is 66% below median its 10-year median of 12.44. Over the past 10 years, this metric has ranged from a low of 8.51 to a high of 16.08. The Business Services industry median ROE % is 8.02. Gakujo Co's value of 4.23% is 47.2% below this industry median. Based on the distribution chart, Gakujo Co ranks #380 out of 1058 companies in the Business Services industry, which is above the industry midpoint. Overall, Gakujo Co has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gakujo Co's ROE % compare to KFY and RHI?
According to the Business Services industry distribution chart, Gakujo Co ranks #380 out of 1058 companies for ROE %. This puts Gakujo Co in the upper half of its industry. The industry median ROE % is 8.02. Gakujo Co's value of 4.23% is 47.2% below this benchmark. Historically, Gakujo Co's own ROE % has ranged from 8.51 to 16.08 over the past decade. While the company's 10-year median is 12.44 vs. the industry median of 8.02, Gakujo 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 Business Services company?
The median ROE % among Business Services companies is 8.02, based on 1,058 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. Gakujo Co's current ROE % of 4.23% is 47.2% 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 Gakujo Co and its competitors. For the Business Services industry, the median ROE % is 8.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gakujo Co's current ROE % is 4.23%, which is 66% below median its own 10-year median of 12.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gakujo Co stock overvalued right now?
Based on GuruFocus' analysis, Gakujo Co (TSE:2301) is currently considered Significantly Undervalued. The stock's GF Value™ is 円2,298.20, compared to a current price of 円1,617.00 — trading 29.6% below its estimated fair value. The current ROE % is 4.23%, which is 66% below median its 10-year median of 12.44 and 47.2% below the Business Services industry median of 8.02. Gakujo Co's overall GF Score™ is 79/100 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 Gakujo Co (TSE:2301), the current ROE % is 4.23% as of Apr. 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 Gakujo Co (TSE:2301) Overvalued in 2026?
Based on GuruFocus' analysis, Gakujo Co stock appears to be undervalued.
The current stock price of 円1,617.00 is trading 29.6% below its estimated GF Value™ of 円2,298.20.
GuruFocus considers Gakujo Co to be Significantly Undervalued.
Key valuation signals for TSE:2301:
ROE %: 4.23% (66% below median its 10-year median of 12.44)
GF Value™: 円2,298.20 vs. price of 円1,617.00 (29.6% below fair value)
Industry Position: 47.2% below the Business Services median (#380 of 1058)
No single metric tells the full story. See the TSE:2301 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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