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ESCON Japan REIT Investment (TSE:2971) 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 (Jan. 2026) net income data. The Revenue data used here is two times the semi-annual (Jan. 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.
* 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 REIT - Retail subindustry, ESCON Japan REIT Investment'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.
ESCON Japan REIT Investment ROE % vs REITs Industry
For the REITs industry and Real Estate sector, ESCON Japan REIT Investment's ROE % distribution charts can be found below:
* The bar in red indicates where ESCON Japan REIT Investment'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 (Jan. 2026) net income data.
ROE % is displayed in the 30-year financial page.
ESCON Japan REIT Investment (TSE:2971) has a ROE % of 6.45% as of Jan. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on ESCON Japan REIT Investment and its competitors. This is near median its historical median of 6.86. Over the past decade, ESCON Japan REIT Investment's ROE % has ranged from 3.96 to 7.63. According to the industry distribution chart, ESCON Japan REIT Investment ranks #418 out of 922 companies in the REITs industry, placing it in the top 45.3%.
Is ESCON Japan REIT Investment's ROE % too high?
ESCON Japan REIT Investment's current ROE % of 6.45% is near median its 10-year median of 6.86. Over the past 10 years, this metric has ranged from a low of 3.96 to a high of 7.63. The REITs industry median ROE % is 6.14. ESCON Japan REIT Investment's value of 6.45% is 5.1% above this industry median. Based on the distribution chart, ESCON Japan REIT Investment ranks #418 out of 922 companies in the REITs industry, which is above the industry midpoint. Overall, ESCON Japan REIT Investment has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ESCON Japan REIT Investment's ROE % compare to SPG and O?
According to the REITs industry distribution chart, ESCON Japan REIT Investment ranks #418 out of 922 companies for ROE %. This puts ESCON Japan REIT Investment in the upper half of its industry. The industry median ROE % is 6.14. ESCON Japan REIT Investment's value of 6.45% is 5.1% above this benchmark. Historically, ESCON Japan REIT Investment's own ROE % has ranged from 3.96 to 7.63 over the past decade. While the company's 10-year median is 6.86 vs. the industry median of 6.14, ESCON Japan REIT Investment 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 REITs company?
The median ROE % among REITs companies is 6.14, based on 922 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. ESCON Japan REIT Investment's current ROE % of 6.45% is 5.1% 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 ESCON Japan REIT Investment and its competitors. For the REITs industry, the median ROE % is 6.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESCON Japan REIT Investment's current ROE % is 6.45%, which is near median its own 10-year median of 6.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ESCON Japan REIT Investment stock overvalued right now?
Based on GuruFocus' analysis, ESCON Japan REIT Investment (TSE:2971) is currently considered Modestly Undervalued. The stock's GF Value™ is 円134,535.91, compared to a current price of 円111,800.00 — trading 16.9% below its estimated fair value. The current ROE % is 6.45%, which is near median its 10-year median of 6.86 and 5.1% above the REITs industry median of 6.14. ESCON Japan REIT Investment's overall GF Score™ is 60/100 with 7 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 ESCON Japan REIT Investment (TSE:2971), the current ROE % is 6.45% as of Jan. 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 ESCON Japan REIT Investment (TSE:2971) Overvalued in 2026?
Based on GuruFocus' analysis, ESCON Japan REIT Investment stock appears to be undervalued.
The current stock price of 円111,800.00 is trading 16.9% below its estimated GF Value™ of 円134,535.91.
GuruFocus considers ESCON Japan REIT Investment to be Modestly Undervalued.
Key valuation signals for TSE:2971:
ROE %: 6.45% (near median its 10-year median of 6.86)
GF Value™: 円134,535.91 vs. price of 円111,800.00 (16.9% below fair value)
Industry Position: 5.1% above the REITs median (#418 of 922)
No single metric tells the full story. See the TSE:2971 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ESCON Japan REIT Investment Corp is a Japanese real estate investment trust that invests in lifestyle-related assets. Its main investment is leasehold land properties known as "sokochi," with stable, high-quality commercial facilities occupying the site.
60GF Score
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