Halows Co (TSE:2742) ROE %: 13.67% (As of Feb. 2026) — Near Median

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TSE:2742 Halows Co Ltd TSE:2742
72 GF Score
Price 円3,695.00
GF Value 円5,053.57
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Halows Co ROE %?

Halows Co TSE:2742 -0.14% 72 ROE % is 13.67% as of Feb. 2026, which is 9% above its 10-year median of 12.54. GuruFocus rates TSE:2742 with a GF Score™ of 72/100 and a GF Value™ of 円5,053.57 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 306 Retail - Defensive companies, Halows Co ranks better than 59.48% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Halows Co's annualized net income for the quarter that ended in Feb. 2026 was 円10,448 Mil. Halows Co's average Total Stockholders Equity over the quarter that ended in Feb. 2026 was 円76,413 Mil. Therefore, Halows Co's annualized ROE % for the quarter that ended in Feb. 2026 was 13.67%.

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

TSE:2742' s ROE % Range Over the Past 10 Years
Min: 10.43   Med: 12.54   Max: 14.64
Current: 11.71

During the past 13 years, Halows Co's highest ROE % was 14.64%. The lowest was 10.43%. And the median was 12.54%.

TSE:2742's ROE % is ranked better than
59.48% of 306 companies
in the Retail - Defensive industry
Industry Median: 8.56 vs TSE:2742: 11.71

Halows Co  (TSE:2742) 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: Feb. 2026 )
=Net Income/Total Stockholders Equity
=10448/76413
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(10448 / 233324)*(233324 / 133435)*(133435 / 76413)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.48 %*1.7486*1.7462
=ROA %*Equity Multiplier
=7.83 %*1.7462
=13.67 %

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: Feb. 2026 )
=Net Income/Total Stockholders Equity
=10448/76413
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (10448 / 14612) * (14612 / 14516) * (14516 / 233324) * (233324 / 133435) * (133435 / 76413)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.715 * 1.0066 * 6.22 % * 1.7486 * 1.7462
=13.67 %

Note: The net income data used here is four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 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.


Halows Co ROE % Related Terms


Halows Co ROE % Historical Data

* Premium members only.

The historical data trend for Halows 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.

Halows Co ROE % Chart

Halows Co Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.67 11.90 14.64 13.41 12.13

Halows Co Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
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 11.98 10.76 12.33 13.67 10.09

TSE:2742 vs KR: ROE % Comparison

For the Grocery Stores subindustry, Halows 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.


Halows Co ROE % vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Halows Co's ROE % distribution charts can be found below:

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


TSE:2742
72GF Score
Halows Co Ltd TSE:2742
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Halows Co ROE % Calculation

Halows Co's annualized ROE % for the fiscal year that ended in Feb. 2026 is calculated as

ROE %=Net Income (A: Feb. 2026 )/( (Total Stockholders Equity (A: Feb. 2025 )+Total Stockholders Equity (A: Feb. 2026 ))/ count )
=8987/( (70425+77735)/ 2 )
=8987/74080
=12.13 %

Halows Co's annualized ROE % for the quarter that ended in Feb. 2026 is calculated as

ROE %=Net Income (Q: Feb. 2026 )/( (Total Stockholders Equity (Q: Nov. 2025 )+Total Stockholders Equity (Q: Feb. 2026 ))/ count )
=10448/( (75091+77735)/ 2 )
=10448/76413
=13.67 %

* 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 (Feb. 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 13.67% mean?
Halows Co (TSE:2742) has a ROE % of 13.67% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Halows Co and its competitors. This is near median its historical median of 12.54. Over the past decade, Halows Co's ROE % has ranged from 10.43 to 14.64. According to the industry distribution chart, Halows Co ranks #124 out of 306 companies in the Retail - Defensive industry, placing it in the top 40.5%.
Is Halows Co's ROE % too high?
Halows Co's current ROE % of 13.67% is near median its 10-year median of 12.54. Over the past 10 years, this metric has ranged from a low of 10.43 to a high of 14.64. The Retail - Defensive industry median ROE % is 8.56. Halows Co's value of 13.67% is 59.7% above this industry median. Based on the distribution chart, Halows Co ranks #124 out of 306 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Halows Co has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Halows Co's ROE % compare to KR?
According to the Retail - Defensive industry distribution chart, Halows Co ranks #124 out of 306 companies for ROE %. This puts Halows Co in the upper half of its industry. The industry median ROE % is 8.56. Halows Co's value of 13.67% is 59.7% above this benchmark. Historically, Halows Co's own ROE % has ranged from 10.43 to 14.64 over the past decade. While the company's 10-year median is 12.54 vs. the industry median of 8.56, Halows 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 Retail - Defensive company?
The median ROE % among Retail - Defensive companies is 8.56, based on 306 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. Halows Co's current ROE % of 13.67% is 59.7% 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 Halows Co and its competitors. For the Retail - Defensive industry, the median ROE % is 8.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Halows Co's current ROE % is 13.67%, which is near median its own 10-year median of 12.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Halows Co stock overvalued right now?
Based on GuruFocus' analysis, Halows Co (TSE:2742) is currently considered Modestly Undervalued. The stock's GF Value™ is 円5,053.57, compared to a current price of 円3,695.00 — trading 26.9% below its estimated fair value. The current ROE % is 13.67%, which is near median its 10-year median of 12.54 and 59.7% above the Retail - Defensive industry median of 8.56. Halows Co's overall GF Score™ is 72/100 with 2 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 Halows Co (TSE:2742), the current ROE % is 13.67% as of Feb. 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 Halows Co (TSE:2742) Overvalued in 2026?

Based on GuruFocus' analysis, Halows Co stock appears to be undervalued. The current stock price of 円3,695.00 is trading 26.9% below its estimated GF Value™ of 円5,053.57. GuruFocus considers Halows Co to be Modestly Undervalued.

Key valuation signals for TSE:2742:

  • ROE %: 13.67% (near median its 10-year median of 12.54)
  • GF Value™: 円5,053.57 vs. price of 円3,695.00 (26.9% below fair value)
  • GF Score™: 72/100 with 2 warning signs
  • Industry Position: 59.7% above the Retail - Defensive median (#124 of 306)

No single metric tells the full story. See the TSE:2742 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Halows Co Business Description

Address 3270 Hayashima, Hayashima-cho, Tsukubo-gun, Okayama, JPN, 701-0393
Halows Co Ltd operates food supermarket chain stores in Hiroshima and Okayama Prefectures. Its stores are open 24 hours a day.
72GF Score

Get the complete analysis for TSE:2742

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

円3,695.00
Price
円5,053.57
GF Value