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Kanto Denka Kogyo CoTSE:4047 -7.66%67 ROE % is 11.75% as of Mar. 2026, which is 8% below its 10-year median of 12.75. GuruFocus rates TSE:4047 with a GF Score™ of 67/100 and a GF Value™ of 円1,068.10 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,584 Chemicals companies, Kanto Denka Kogyo Co ranks better than 52.02% on this metric.
The historical rank and industry rank for Kanto Denka Kogyo Co's ROE % or its related term are showing as below:
TSE:4047'
s ROE % Range Over the Past 10 Years
Min: -7.01 Med: 12.75 Max: 23.55
Current: 5.6
During the past 13 years, Kanto Denka Kogyo Co's highest ROE % was 23.55%. The lowest was -7.01%. And the median was 12.75%.
TSE:4047's ROE % is ranked better than 52.02% of 1584
companies
in the Chemicals industry
Industry Median: 5.25
vs TSE:4047: 5.60
Kanto Denka Kogyo Co (TSE:4047) 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.
For the Specialty Chemicals subindustry, Kanto Denka Kogyo 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.
Kanto Denka Kogyo Co ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kanto Denka Kogyo Co's ROE % distribution charts can be found below:
* The bar in red indicates where Kanto Denka Kogyo 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.
Kanto Denka Kogyo Co (TSE:4047) has a ROE % of 11.75% 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 Kanto Denka Kogyo Co and its competitors. This is near median its historical median of 12.75. According to the industry distribution chart, Kanto Denka Kogyo Co ranks #760 out of 1584 companies in the Chemicals industry, placing it in the top 48%.
Is Kanto Denka Kogyo Co's ROE % too high?
Kanto Denka Kogyo Co's current ROE % of 11.75% is near median its 10-year median of 12.75. The Chemicals industry median ROE % is 5.25. Kanto Denka Kogyo Co's value of 11.75% is 123.8% above this industry median. Based on the distribution chart, Kanto Denka Kogyo Co ranks #760 out of 1584 companies in the Chemicals industry, which is above the industry midpoint. Overall, Kanto Denka Kogyo Co has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kanto Denka Kogyo Co's ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Kanto Denka Kogyo Co ranks #760 out of 1584 companies for ROE %. This puts Kanto Denka Kogyo Co in the upper half of its industry. The industry median ROE % is 5.25. Kanto Denka Kogyo Co's value of 11.75% is 123.8% above this benchmark. While the company's 10-year median is 12.75 vs. the industry median of 5.25, Kanto Denka Kogyo 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 5.25, based on 1,584 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. Kanto Denka Kogyo Co's current ROE % of 11.75% is 123.8% 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 Kanto Denka Kogyo Co and its competitors. For the Chemicals industry, the median ROE % is 5.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kanto Denka Kogyo Co's current ROE % is 11.75%, which is near median its own 10-year median of 12.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kanto Denka Kogyo Co stock overvalued right now?
Based on GuruFocus' analysis, Kanto Denka Kogyo Co (TSE:4047) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,068.10, compared to a current price of 円2,701.00 — trading 152.9% above its estimated fair value. The current ROE % is 11.75%, which is near median its 10-year median of 12.75 and 123.8% above the Chemicals industry median of 5.25. Kanto Denka Kogyo Co's overall GF Score™ is 67/100 with 4 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 Kanto Denka Kogyo Co (TSE:4047), the current ROE % is 11.75% 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 Kanto Denka Kogyo Co (TSE:4047) Overvalued in 2026?
Based on GuruFocus' analysis, Kanto Denka Kogyo Co stock appears to be overvalued.
The current stock price of 円2,701.00 is trading 152.9% above its estimated GF Value™ of 円1,068.10.
GuruFocus considers Kanto Denka Kogyo Co to be Significantly Overvalued.
Key valuation signals for TSE:4047:
ROE %: 11.75% (near median its 10-year median of 12.75)
GF Value™: 円1,068.10 vs. price of 円2,701.00 (152.9% above fair value)
Industry Position: 123.8% above the Chemicals median (#760 of 1584)
No single metric tells the full story. See the TSE:4047 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kanto Denka Kogyo Co Ltd is a Japan-based company, engages in the production of a chemical product. It operates through Fundamental Chemicals and Fine Chemicals divisions. The Fundamental Chemicals offers caustic soda, hydrochloric acid, sodium hypochlorite, aluminum chloride, trichloroethylene, perchloroethylene, vinylidene chloride, cyclohexanol. The Fine Chemicals division offers reprographics carriers, magnetite, sulfur hexafluoride, carbon tetrafluoride, trifluoromethane, hexafluoroethane, nitrogen trifluoride, among others.
67GF Score
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