Nankai Chemical CoTSE:4040 -3.04%73 ROE % is 47.34% as of Mar. 2026, which is 302% above its 10-year median of 11.78. GuruFocus rates TSE:4040 with a GF Score™ of 73/100 and a GF Value™ of 円2,863.97 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,591 Chemicals companies, Nankai Chemical Co ranks better than 97.11% on this metric.
The historical rank and industry rank for Nankai Chemical Co's ROE % or its related term are showing as below:
TSE:4040'
s ROE % Range Over the Past 10 Years
Min: 3.88 Med: 11.78 Max: 29.55
Current: 29.55
During the past 6 years, Nankai Chemical Co's highest ROE % was 29.55%. The lowest was 3.88%. And the median was 11.78%.
TSE:4040's ROE % is ranked better than 97.11% of 1591
companies
in the Chemicals industry
Industry Median: 5.19
vs TSE:4040: 29.55
Nankai Chemical Co (TSE:4040) 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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
Nankai Chemical Co ROE % Related Terms
Nankai Chemical Co ROE % Historical Data
* Premium members only.
The historical data trend for Nankai Chemical 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 Chemicals subindustry, Nankai Chemical 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.
Nankai Chemical Co ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nankai Chemical Co's ROE % distribution charts can be found below:
* The bar in red indicates where Nankai Chemical 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 two times the semi-annual (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Nankai Chemical Co (TSE:4040) has a ROE % of 47.34% 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 Nankai Chemical Co and its competitors. This is 302% above median its historical median of 11.78. Over the past decade, Nankai Chemical Co's ROE % has ranged from 3.88 to 29.55. According to the industry distribution chart, Nankai Chemical Co ranks #46 out of 1591 companies in the Chemicals industry, placing it in the top 2.9%.
Is Nankai Chemical Co's ROE % too high?
Nankai Chemical Co's current ROE % of 47.34% is 302% above median its 10-year median of 11.78. Over the past 10 years, this metric has ranged from a low of 3.88 to a high of 29.55. The Chemicals industry median ROE % is 5.19. Nankai Chemical Co's value of 47.34% is 812.1% above this industry median. Based on the distribution chart, Nankai Chemical Co ranks #46 out of 1591 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Nankai Chemical Co has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nankai Chemical Co's ROE % compare to DOW?
According to the Chemicals industry distribution chart, Nankai Chemical Co ranks #46 out of 1591 companies for ROE %. This places Nankai Chemical Co in the top 3% of its industry — outperforming the majority of peers. The industry median ROE % is 5.19. Nankai Chemical Co's value of 47.34% is 812.1% above this benchmark. Historically, Nankai Chemical Co's own ROE % has ranged from 3.88 to 29.55 over the past decade. While the company's 10-year median is 11.78 vs. the industry median of 5.19, Nankai Chemical 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 Chemicals company?
The median ROE % among Chemicals companies is 5.19, based on 1,591 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. Nankai Chemical Co's current ROE % of 47.34% is 812.1% 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 Nankai Chemical Co and its competitors. For the Chemicals industry, the median ROE % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nankai Chemical Co's current ROE % is 47.34%, which is 302% above median its own 10-year median of 11.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nankai Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Nankai Chemical Co (TSE:4040) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,863.97, compared to a current price of 円3,510.00 — trading 22.6% above its estimated fair value. The current ROE % is 47.34%, which is 302% above median its 10-year median of 11.78 and 812.1% above the Chemicals industry median of 5.19. Nankai Chemical Co's overall GF Score™ is 73/100 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 Nankai Chemical Co (TSE:4040), the current ROE % is 47.34% 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 Nankai Chemical Co (TSE:4040) Overvalued in 2026?
Based on GuruFocus' analysis, Nankai Chemical Co stock appears to be overvalued.
The current stock price of 円3,510.00 is trading 22.6% above its estimated GF Value™ of 円2,863.97.
GuruFocus considers Nankai Chemical Co to be Modestly Overvalued.
Key valuation signals for TSE:4040:
ROE %: 47.34% (302% above median its 10-year median of 11.78)
GF Value™: 円2,863.97 vs. price of 円3,510.00 (22.6% above fair value)
Industry Position: 812.1% above the Chemicals median (#46 of 1591)
No single metric tells the full story. See the TSE:4040 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nankai Chemical Co Ltd is engaged in the manufacturing and sales of chemical products, agricultural products, quasi-drugs and food additives. collecting, transporting, and recycling of industrial wastes.
73GF Score
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