Care Service Co (TSE:2425) ROE %: 4.49% (As of Mar. 2026) — 64% Below Median


TSE:2425 Care Service Co Ltd TSE:2425
60 GF Score
Price 円624.00
GF Value 円817.17
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Care Service Co ROE %?

Care Service Co TSE:2425 -0.32% 60 ROE % is 4.49% as of Mar. 2026, which is 64% below its 10-year median of 12.39. GuruFocus rates TSE:2425 with a GF Score™ of 60/100 and a GF Value™ of 円817.17 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 625 Healthcare Providers & Services companies, Care Service Co ranks better than 61.12% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Care Service Co's annualized net income for the quarter that ended in Mar. 2026 was 円131 Mil. Care Service Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円2,921 Mil. Therefore, Care Service Co's annualized ROE % for the quarter that ended in Mar. 2026 was 4.49%.

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

TSE:2425' s ROE % Range Over the Past 10 Years
Min: 6.56   Med: 12.39   Max: 15.25
Current: 9.2

During the past 13 years, Care Service Co's highest ROE % was 15.25%. The lowest was 6.56%. And the median was 12.39%.

TSE:2425's ROE % is ranked better than
61.12% of 625 companies
in the Healthcare Providers & Services industry
Industry Median: 5.84 vs TSE:2425: 9.20

Care Service Co  (TSE:2425) 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
=131.266/2921.157
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(131.266 / 9221.646)*(9221.646 / 3904.4035)*(3904.4035 / 2921.157)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.42 %*2.3619*1.3366
=ROA %*Equity Multiplier
=3.35 %*1.3366
=4.49 %

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
=131.266/2921.157
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (131.266 / 82.466) * (82.466 / 208.474) * (208.474 / 9221.646) * (9221.646 / 3904.4035) * (3904.4035 / 2921.157)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.5918 * 0.3956 * 2.26 % * 2.3619 * 1.3366
=4.49 %

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


Care Service Co ROE % Related Terms


Care Service Co ROE % Historical Data

* Premium members only.

The historical data trend for Care Service 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.

Care Service Co ROE % Chart

Care Service Co 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 9.92 14.94 15.23 11.11 3.92

Care Service Co Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 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 21.19 11.97 10.43 3.41 4.49

TSE:2425 vs HCA, THC, DVA: ROE % Comparison

For the Medical Care Facilities subindustry, Care Service 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.


Care Service Co ROE % vs Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Care Service Co's ROE % distribution charts can be found below:

* The bar in red indicates where Care Service Co's ROE % falls into.


TSE:2425
60GF Score
Care Service Co Ltd TSE:2425
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Care Service Co ROE % Calculation

Care Service Co'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 )
=115.095/( (2914.742+2953.974)/ 2 )
=115.095/2934.358
=3.92 %

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

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=131.266/( (2888.34+2953.974)/ 2 )
=131.266/2921.157
=4.49 %

* 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 (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 4.49% mean?
Care Service Co (TSE:2425) has a ROE % of 4.49% 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 Care Service Co and its competitors. This is 64% below median its historical median of 12.39. Over the past decade, Care Service Co's ROE % has ranged from 6.56 to 15.25. According to the industry distribution chart, Care Service Co ranks #243 out of 625 companies in the Healthcare Providers & Services industry, placing it in the top 38.9%.
Is Care Service Co's ROE % too high?
Care Service Co's current ROE % of 4.49% is 64% below median its 10-year median of 12.39. Over the past 10 years, this metric has ranged from a low of 6.56 to a high of 15.25. The Healthcare Providers & Services industry median ROE % is 5.84. Care Service Co's value of 4.49% is 23.1% below this industry median. Based on the distribution chart, Care Service Co ranks #243 out of 625 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Care Service Co has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Care Service Co's ROE % compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Care Service Co ranks #243 out of 625 companies for ROE %. This puts Care Service Co in the upper half of its industry. The industry median ROE % is 5.84. Care Service Co's value of 4.49% is 23.1% below this benchmark. Historically, Care Service Co's own ROE % has ranged from 6.56 to 15.25 over the past decade. While the company's 10-year median is 12.39 vs. the industry median of 5.84, Care Service 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 Healthcare Providers & Services company?
The median ROE % among Healthcare Providers & Services companies is 5.84, based on 625 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. Care Service Co's current ROE % of 4.49% is 23.1% 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 Care Service Co and its competitors. For the Healthcare Providers & Services industry, the median ROE % is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Care Service Co's current ROE % is 4.49%, which is 64% below median its own 10-year median of 12.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Care Service Co stock overvalued right now?
Based on GuruFocus' analysis, Care Service Co (TSE:2425) is currently considered Modestly Undervalued. The stock's GF Value™ is 円817.17, compared to a current price of 円624.00 — trading 23.6% below its estimated fair value. The current ROE % is 4.49%, which is 64% below median its 10-year median of 12.39 and 23.1% below the Healthcare Providers & Services industry median of 5.84. Care Service Co's overall GF Score™ is 60/100 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 Care Service Co (TSE:2425), the current ROE % is 4.49% 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 Care Service Co (TSE:2425) Overvalued in 2026?

Based on GuruFocus' analysis, Care Service Co stock appears to be undervalued. The current stock price of 円624.00 is trading 23.6% below its estimated GF Value™ of 円817.17. GuruFocus considers Care Service Co to be Modestly Undervalued.

Key valuation signals for TSE:2425:

  • ROE %: 4.49% (64% below median its 10-year median of 12.39)
  • GF Value™: 円817.17 vs. price of 円624.00 (23.6% below fair value)
  • GF Score™: 60/100 with 1 warning sign
  • Industry Position: 23.1% below the Healthcare Providers & Services median (#243 of 625)

No single metric tells the full story. See the TSE:2425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Care Service Co Business Description

Address 2-3 Omorikita 1-chome, Oimori Miyuki Building, Tokyo, JPN, 143-0016
Care Service Co Ltd provides nursing care services to the handicapped and elderly in Tokyo. The Company's services include day-care, 24-hour home-visit care, home-stay care, and bathing services, small-scale multifunctional in-home care, clean service. It also lends and sales assistive welfare equipment.
60GF Score

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

円624.00
Price
円817.17
GF Value