Asahi KaseiTSE:3407 76 ROE % is 7.46% as of Mar. 2026, which is 4% below its 10-year median of 7.81. GuruFocus rates TSE:3407 with a GF Score™ of 76/100 and a GF Value™ of 円1,184.61 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 557 Conglomerates companies, Asahi Kasei ranks better than 60.86% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Asahi Kasei's annualized net income for the quarter that ended in Mar. 2026 was 円152,748 Mil. Asahi Kasei's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円2,046,551 Mil. Therefore, Asahi Kasei's annualized ROE % for the quarter that ended in Mar. 2026 was 7.46%.
The historical rank and industry rank for Asahi Kasei's ROE % or its related term are showing as below:
TSE:3407'
s ROE % Range Over the Past 10 Years
Min: -5.49 Med: 7.81 Max: 13.96
Current: 8.21
During the past 13 years, Asahi Kasei's highest ROE % was 13.96%. The lowest was -5.49%. And the median was 7.81%.
TSE:3407's ROE % is ranked better than 60.86% of 557
companies
in the Conglomerates industry
Industry Median: 5.99
vs TSE:3407: 8.21
Asahi Kasei (TSE:3407) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (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.
Asahi Kasei ROE % Related Terms
Asahi Kasei ROE % Historical Data
* Premium members only.
The historical data trend for Asahi Kasei'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 Conglomerates subindustry, Asahi Kasei'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.
Asahi Kasei ROE % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Asahi Kasei's ROE % distribution charts can be found below:
* The bar in red indicates where Asahi Kasei'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Asahi Kasei (TSE:3407) has a ROE % of 7.46% 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 Asahi Kasei and its competitors. This is near median its historical median of 7.81. According to the industry distribution chart, Asahi Kasei ranks #218 out of 557 companies in the Conglomerates industry, placing it in the top 39.1%.
Is Asahi Kasei's ROE % too high?
Asahi Kasei's current ROE % of 7.46% is near median its 10-year median of 7.81. The Conglomerates industry median ROE % is 5.99. Asahi Kasei's value of 7.46% is 24.5% above this industry median. Based on the distribution chart, Asahi Kasei ranks #218 out of 557 companies in the Conglomerates industry, which is above the industry midpoint. Overall, Asahi Kasei has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Asahi Kasei's ROE % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Asahi Kasei ranks #218 out of 557 companies for ROE %. This puts Asahi Kasei in the upper half of its industry. The industry median ROE % is 5.99. Asahi Kasei's value of 7.46% is 24.5% above this benchmark. While the company's 10-year median is 7.81 vs. the industry median of 5.99, Asahi Kasei 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 Conglomerates company?
The median ROE % among Conglomerates companies is 5.99, based on 557 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. Asahi Kasei's current ROE % of 7.46% is 24.5% 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 Asahi Kasei and its competitors. For the Conglomerates industry, the median ROE % is 5.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Asahi Kasei's current ROE % is 7.46%, which is near median its own 10-year median of 7.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asahi Kasei stock overvalued right now?
Based on GuruFocus' analysis, Asahi Kasei (TSE:3407) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,184.61, compared to a current price of 円1,794.00 — trading 51.4% above its estimated fair value. The current ROE % is 7.46%, which is near median its 10-year median of 7.81 and 24.5% above the Conglomerates industry median of 5.99. Asahi Kasei's overall GF Score™ is 76/100 with 8 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 Asahi Kasei (TSE:3407), the current ROE % is 7.46% 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 Asahi Kasei (TSE:3407) Overvalued in 2026?
Based on GuruFocus' analysis, Asahi Kasei stock appears to be overvalued.
The current stock price of 円1,794.00 is trading 51.4% above its estimated GF Value™ of 円1,184.61.
GuruFocus considers Asahi Kasei to be Significantly Overvalued.
Key valuation signals for TSE:3407:
ROE %: 7.46% (near median its 10-year median of 7.81)
GF Value™: 円1,184.61 vs. price of 円1,794.00 (51.4% above fair value)
Industry Position: 24.5% above the Conglomerates median (#218 of 557)
No single metric tells the full story. See the TSE:3407 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Asahi Kasei Corp is a Japanese industrial conglomerate mainly engaged in materials, housing, and healthcare businesses. The Health Care segment covers pharmaceuticals, healthcare, and critical care. The Housing segment includes housing and building materials businesses. The Material segment consists of environmental solutions, mobility & industry, AL business, and life innovation, such as digital solutions and comfort life. The Others segment includes plant and environmental engineering, research and information services, as well as staffing and placement businesses. It generates the majority of its revenue from the Material segment.
76GF Score
Get the complete analysis for TSE:3407
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:3407 has been successfully added to your 
