The historical rank and industry rank for Nippon Paper Industries Co's ROE % or its related term are showing as below:
TSE:3863'
s ROE % Range Over the Past 10 Years
Min: -12.27 Med: 1.38 Max: 5.27
Current: 2.43
During the past 13 years, Nippon Paper Industries Co's highest ROE % was 5.27%. The lowest was -12.27%. And the median was 1.38%.
TSE:3863's ROE % is ranked better than 52.5% of 280
companies
in the Forest Products industry
Industry Median: 2.07
vs TSE:3863: 2.43
Nippon Paper Industries Co (TSE:3863) 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.
* 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.
Nippon Paper Industries Co ROE % Competitor Comparison
For the Paper & Paper Products subindustry, Nippon Paper Industries 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.
Nippon Paper Industries Co ROE % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Nippon Paper Industries Co's ROE % distribution charts can be found below:
* The bar in red indicates where Nippon Paper Industries 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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Nippon Paper Industries Co (TSE:3863) has a ROE % of 3.21% 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 Nippon Paper Industries Co and its competitors. This is 133% above median its historical median of 1.38. According to the industry distribution chart, Nippon Paper Industries Co ranks #133 out of 280 companies in the Forest Products industry, placing it in the top 47.5%.
Is Nippon Paper Industries Co's ROE % too high?
Nippon Paper Industries Co's current ROE % of 3.21% is 133% above median its 10-year median of 1.38. The Forest Products industry median ROE % is 2.07. Nippon Paper Industries Co's value of 3.21% is 55.1% above this industry median. Based on the distribution chart, Nippon Paper Industries Co ranks #133 out of 280 companies in the Forest Products industry, which is above the industry midpoint. Overall, Nippon Paper Industries Co has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nippon Paper Industries Co's ROE % compare to competitors?
According to the Forest Products industry distribution chart, Nippon Paper Industries Co ranks #133 out of 280 companies for ROE %. This puts Nippon Paper Industries Co in the upper half of its industry. The industry median ROE % is 2.07. Nippon Paper Industries Co's value of 3.21% is 55.1% above this benchmark. While the company's 10-year median is 1.38 vs. the industry median of 2.07, Nippon Paper Industries 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 Forest Products company?
The median ROE % among Forest Products companies is 2.07, based on 280 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. Nippon Paper Industries Co's current ROE % of 3.21% is 55.1% 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 Nippon Paper Industries Co and its competitors. For the Forest Products industry, the median ROE % is 2.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Paper Industries Co's current ROE % is 3.21%, which is 133% above median its own 10-year median of 1.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Paper Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Paper Industries Co (TSE:3863) is currently considered Fairly Valued. The stock's GF Value™ is 円1,145.23, compared to a current price of 円1,249.00 — trading 9.1% above its estimated fair value. The current ROE % is 3.21%, which is 133% above median its 10-year median of 1.38 and 55.1% above the Forest Products industry median of 2.07. Nippon Paper Industries Co's overall GF Score™ is 61/100 with 5 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 Nippon Paper Industries Co (TSE:3863), the current ROE % is 3.21% 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 Nippon Paper Industries Co (TSE:3863) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Paper Industries Co stock appears to be overvalued.
The current stock price of 円1,249.00 is trading 9.1% above its estimated GF Value™ of 円1,145.23.
GuruFocus considers Nippon Paper Industries Co to be Fairly Valued.
Key valuation signals for TSE:3863:
ROE %: 3.21% (133% above median its 10-year median of 1.38)
GF Value™: 円1,145.23 vs. price of 円1,249.00 (9.1% above fair value)
Industry Position: 55.1% above the Forest Products median (#133 of 280)
No single metric tells the full story. See the TSE:3863 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Paper Industries Co Ltd produces and sells a variety of paper products. The company's paper products include newsprint, printing, sanitary, and packaging paper, as well as container board and boxes. The firm also sells construction materials, and generates electric power. Nippon Paper organizes itself into four segments based on product type: pulp and paper; paper related; wood products and construction related; and other. The pulp and paper segment generates the majority of revenue. The majority of sales are made in Japan.
61GF Score
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