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 (Sep. 2025) net income data. The Revenue data used here is four times the quarterly (Sep. 2025) 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.
Nihon Chouzai Co ROE % Related Terms
Nihon Chouzai Co ROE % Historical Data
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The historical data trend for Nihon Chouzai 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 Pharmaceutical Retailers subindustry, Nihon Chouzai 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.
Nihon Chouzai Co ROE % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Nihon Chouzai Co's ROE % distribution charts can be found below:
* The bar in red indicates where Nihon Chouzai 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 (Sep. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Nihon Chouzai Co (TSE:3341) has a ROE % of 2.65% as of Sep. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Nihon Chouzai Co and its competitors. This is 69% below median its historical median of 8.67. Over the past decade, Nihon Chouzai Co's ROE % has ranged from 1.87 to 25.26.
Is Nihon Chouzai Co's ROE % too high?
Nihon Chouzai Co's current ROE % of 2.65% is 69% below median its 10-year median of 8.67. Over the past 10 years, this metric has ranged from a low of 1.87 to a high of 25.26. The Healthcare Providers & Services industry median ROE % is 5.72. Nihon Chouzai Co's value of 2.65% is 53.7% below this industry median. Overall, Nihon Chouzai Co has a GF Score™ of 51/100, reflecting its overall financial health beyond just this single metric.
How does Nihon Chouzai Co's ROE % compare to competitors?
Nihon Chouzai Co's ROE % of 2.65% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROE % is 5.72. Nihon Chouzai Co's value of 2.65% is 53.7% below this benchmark. Historically, Nihon Chouzai Co's own ROE % has ranged from 1.87 to 25.26 over the past decade. While the company's 10-year median is 8.67 vs. the industry median of 5.72, Nihon Chouzai 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 5.72, based on 628 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. Nihon Chouzai Co's current ROE % of 2.65% is 53.7% 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 Nihon Chouzai Co and its competitors. For the Healthcare Providers & Services industry, the median ROE % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Chouzai Co's current ROE % is 2.65%, which is 69% below median its own 10-year median of 8.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Chouzai Co stock overvalued right now?
Nihon Chouzai Co (TSE:3341) has a current ROE % of 2.65%. The stock's GF Value™ is 円1,563.20, compared to a current price of 円3,925.00 — trading 151.1% above its estimated fair value. The current ROE % is 2.65%, which is 69% below median its 10-year median of 8.67 and 53.7% below the Healthcare Providers & Services industry median of 5.72. Nihon Chouzai Co's overall GF Score™ is 51/100 with 10 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 Nihon Chouzai Co (TSE:3341), the current ROE % is 2.65% as of Sep. 2025. 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 Nihon Chouzai Co (TSE:3341) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Chouzai Co stock appears to be overvalued.
The current stock price of 円3,925.00 is trading 151.1% above its estimated GF Value™ of 円1,563.20.
Key valuation signals for TSE:3341:
ROE %: 2.65% (69% below median its 10-year median of 8.67)
GF Value™: 円1,563.20 vs. price of 円3,925.00 (151.1% above fair value)
Industry Position: 53.7% below the Healthcare Providers & Services median
No single metric tells the full story. See the TSE:3341 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Chouzai Co Ltd operates in the pharmaceutical industry. The company is organized into segments: Pharmacy, Pharmaceutical Manufacturing and Sales, and Healthcare Staffing Services and operates mainly from Japan. Through its operating segments, the firm manages a chain of pharmacies nationwide, manufactures and sells generic drugs, and provides staffing services that are specialized in pharmacy.
51GF Score
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