The historical rank and industry rank for New Japan Chemical Co's ROE % or its related term are showing as below:
TSE:4406'
s ROE % Range Over the Past 10 Years
Min: -4.37 Med: 3.18 Max: 5.21
Current: 3.19
During the past 13 years, New Japan Chemical Co's highest ROE % was 5.21%. The lowest was -4.37%. And the median was 3.18%.
TSE:4406's ROE % is ranked worse than 61.35% of 1581
companies
in the Chemicals industry
Industry Median: 5.21
vs TSE:4406: 3.19
New Japan Chemical Co (TSE:4406) 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.
* 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, New Japan 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.
New Japan Chemical Co ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, New Japan Chemical Co's ROE % distribution charts can be found below:
* The bar in red indicates where New Japan 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.
New Japan Chemical Co (TSE:4406) has a ROE % of 3.74% 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 New Japan Chemical Co and its competitors. This is 18% above median its historical median of 3.18. According to the industry distribution chart, New Japan Chemical Co ranks #970 out of 1581 companies in the Chemicals industry, placing it in the top 61.4%.
Is New Japan Chemical Co's ROE % too high?
New Japan Chemical Co's current ROE % of 3.74% is 18% above median its 10-year median of 3.18. The Chemicals industry median ROE % is 5.21. New Japan Chemical Co's value of 3.74% is 28.2% below this industry median. Based on the distribution chart, New Japan Chemical Co ranks #970 out of 1581 companies in the Chemicals industry, which is below the industry midpoint. Overall, New Japan Chemical 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 New Japan Chemical Co's ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, New Japan Chemical Co ranks #970 out of 1581 companies for ROE %. This places New Japan Chemical Co in the lower half of its industry. The industry median ROE % is 5.21. New Japan Chemical Co's value of 3.74% is 28.2% below this benchmark. While the company's 10-year median is 3.18 vs. the industry median of 5.21, New Japan Chemical 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 5.21, based on 1,581 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. New Japan Chemical Co's current ROE % of 3.74% is 28.2% 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 New Japan Chemical Co and its competitors. For the Chemicals industry, the median ROE % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Japan Chemical Co's current ROE % is 3.74%, which is 18% above median its own 10-year median of 3.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Japan Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, New Japan Chemical Co (TSE:4406) is currently considered Fairly Valued. The stock's GF Value™ is 円199.66, compared to a current price of 円202.00 — trading 1.2% above its estimated fair value. The current ROE % is 3.74%, which is 18% above median its 10-year median of 3.18 and 28.2% below the Chemicals industry median of 5.21. New Japan Chemical 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 New Japan Chemical Co (TSE:4406), the current ROE % is 3.74% 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 New Japan Chemical Co (TSE:4406) Overvalued in 2026?
Based on GuruFocus' analysis, New Japan Chemical Co stock appears to be overvalued.
The current stock price of 円202.00 is trading 1.2% above its estimated GF Value™ of 円199.66.
GuruFocus considers New Japan Chemical Co to be Fairly Valued.
Key valuation signals for TSE:4406:
ROE %: 3.74% (18% above median its 10-year median of 3.18)
GF Value™: 円199.66 vs. price of 円202.00 (1.2% above fair value)
Industry Position: 28.2% below the Chemicals median (#970 of 1581)
No single metric tells the full story. See the TSE:4406 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Japan Chemical Co Ltd is a Japan-based company engages in the production and sale of oleo-chemical and chemical products. It offers fatty acids, glycerol, higher alcohols, unsaturated alcohols, surfactants, plasticizers, functional products, and resin additives.
61GF Score
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