Nippon Shokubai CoTSE:4114 +0.24%77 ROE % is 2.44% as of Mar. 2026, which is 51% below its 10-year median of 5.02. GuruFocus rates TSE:4114 with a GF Score™ of 77/100 and a GF Value™ of 円1,744.78 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,586 Chemicals companies, Nippon Shokubai Co ranks worse than 55.17% on this metric.
The historical rank and industry rank for Nippon Shokubai Co's ROE % or its related term are showing as below:
TSE:4114'
s ROE % Range Over the Past 10 Years
Min: -3.42 Med: 5.02 Max: 7.58
Current: 4.36
During the past 13 years, Nippon Shokubai Co's highest ROE % was 7.58%. The lowest was -3.42%. And the median was 5.02%.
TSE:4114's ROE % is ranked worse than 55.17% of 1586
companies
in the Chemicals industry
Industry Median: 5.185
vs TSE:4114: 4.36
Nippon Shokubai Co (TSE:4114) 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.
Nippon Shokubai Co ROE % Related Terms
Nippon Shokubai Co ROE % Historical Data
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The historical data trend for Nippon Shokubai 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, Nippon Shokubai 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 Shokubai Co ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Shokubai Co's ROE % distribution charts can be found below:
* The bar in red indicates where Nippon Shokubai 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 Shokubai Co (TSE:4114) has a ROE % of 2.44% 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 Shokubai Co and its competitors. This is 51% below median its historical median of 5.02. According to the industry distribution chart, Nippon Shokubai Co ranks #875 out of 1586 companies in the Chemicals industry, placing it in the top 55.2%.
Is Nippon Shokubai Co's ROE % too high?
Nippon Shokubai Co's current ROE % of 2.44% is 51% below median its 10-year median of 5.02. The Chemicals industry median ROE % is 5.19. Nippon Shokubai Co's value of 2.44% is 52.9% below this industry median. Based on the distribution chart, Nippon Shokubai Co ranks #875 out of 1586 companies in the Chemicals industry, which is below the industry midpoint. Overall, Nippon Shokubai Co has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Shokubai Co's ROE % compare to DOW?
According to the Chemicals industry distribution chart, Nippon Shokubai Co ranks #875 out of 1586 companies for ROE %. This places Nippon Shokubai Co in the lower half of its industry. The industry median ROE % is 5.19. Nippon Shokubai Co's value of 2.44% is 52.9% below this benchmark. While the company's 10-year median is 5.02 vs. the industry median of 5.19, Nippon Shokubai 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 Chemicals company?
The median ROE % among Chemicals companies is 5.19, based on 1,586 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 Shokubai Co's current ROE % of 2.44% is 52.9% 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 Nippon Shokubai 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. Nippon Shokubai Co's current ROE % is 2.44%, which is 51% below median its own 10-year median of 5.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Shokubai Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Shokubai Co (TSE:4114) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,744.78, compared to a current price of 円2,102.00 — trading 20.5% above its estimated fair value. The current ROE % is 2.44%, which is 51% below median its 10-year median of 5.02 and 52.9% below the Chemicals industry median of 5.19. Nippon Shokubai Co's overall GF Score™ is 77/100 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 Shokubai Co (TSE:4114), the current ROE % is 2.44% 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 Shokubai Co (TSE:4114) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Shokubai Co stock appears to be overvalued.
The current stock price of 円2,102.00 is trading 20.5% above its estimated GF Value™ of 円1,744.78.
GuruFocus considers Nippon Shokubai Co to be Modestly Overvalued.
Key valuation signals for TSE:4114:
ROE %: 2.44% (51% below median its 10-year median of 5.02)
GF Value™: 円1,744.78 vs. price of 円2,102.00 (20.5% above fair value)
Industry Position: 52.9% below the Chemicals median (#875 of 1586)
No single metric tells the full story. See the TSE:4114 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Shokubai Co Ltd manufactures and sells a variety of chemicals, catalysts, and chemical-based products. The firm organizes itself into three segments based on product type. The functional chemicals segment, which generates the majority of revenue, sells polymers for concrete mixtures, acrylates used in detergents, and resins for paints and processed adhesive products. The basic chemicals segment sells ethylene oxide and ethylene glycol used in polyester fibers and plastic beverage containers. The environment and catalysts segment sells catalysts used for automotive products and lithium-ion battery production. The majority of revenue comes from Asia.
77GF Score
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