Nippon Shinyaku CoTSE:4516 +0.30%90 ROE % is 5.39% as of Mar. 2026, which is 56% below its 10-year median of 12.28. GuruFocus rates TSE:4516 with a GF Score™ of 90/100 and a GF Value™ of 円4,785.64 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 936 Drug Manufacturers companies, Nippon Shinyaku Co ranks better than 68.06% on this metric.
The historical rank and industry rank for Nippon Shinyaku Co's ROE % or its related term are showing as below:
TSE:4516'
s ROE % Range Over the Past 10 Years
Min: 10.81 Med: 12.28 Max: 14.54
Current: 11.14
During the past 13 years, Nippon Shinyaku Co's highest ROE % was 14.54%. The lowest was 10.81%. And the median was 12.28%.
TSE:4516's ROE % is ranked better than 68.06% of 936
companies
in the Drug Manufacturers industry
Industry Median: 5.865
vs TSE:4516: 11.14
Nippon Shinyaku Co (TSE:4516) 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 Shinyaku Co ROE % Related Terms
Nippon Shinyaku Co ROE % Historical Data
* Premium members only.
The historical data trend for Nippon Shinyaku 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 Drug Manufacturers - Specialty & Generic subindustry, Nippon Shinyaku 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 Shinyaku Co ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Nippon Shinyaku Co's ROE % distribution charts can be found below:
* The bar in red indicates where Nippon Shinyaku 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 Shinyaku Co (TSE:4516) has a ROE % of 5.39% 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 Shinyaku Co and its competitors. This is 56% below median its historical median of 12.28. Over the past decade, Nippon Shinyaku Co's ROE % has ranged from 10.81 to 14.54. According to the industry distribution chart, Nippon Shinyaku Co ranks #299 out of 936 companies in the Drug Manufacturers industry, placing it in the top 31.9%.
Is Nippon Shinyaku Co's ROE % too high?
Nippon Shinyaku Co's current ROE % of 5.39% is 56% below median its 10-year median of 12.28. Over the past 10 years, this metric has ranged from a low of 10.81 to a high of 14.54. The Drug Manufacturers industry median ROE % is 5.87. Nippon Shinyaku Co's value of 5.39% is 8.1% below this industry median. Based on the distribution chart, Nippon Shinyaku Co ranks #299 out of 936 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Nippon Shinyaku Co has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Shinyaku Co's ROE % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Nippon Shinyaku Co ranks #299 out of 936 companies for ROE %. This puts Nippon Shinyaku Co in the upper half of its industry. The industry median ROE % is 5.87. Nippon Shinyaku Co's value of 5.39% is 8.1% below this benchmark. Historically, Nippon Shinyaku Co's own ROE % has ranged from 10.81 to 14.54 over the past decade. While the company's 10-year median is 12.28 vs. the industry median of 5.87, Nippon Shinyaku 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 Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 5.87, based on 936 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 Shinyaku Co's current ROE % of 5.39% is 8.1% 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 Shinyaku Co and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Shinyaku Co's current ROE % is 5.39%, which is 56% below median its own 10-year median of 12.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Shinyaku Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Shinyaku Co (TSE:4516) is currently considered Modestly Undervalued. The stock's GF Value™ is 円4,785.64, compared to a current price of 円4,049.00 — trading 15.4% below its estimated fair value. The current ROE % is 5.39%, which is 56% below median its 10-year median of 12.28 and 8.1% below the Drug Manufacturers industry median of 5.87. Nippon Shinyaku Co's overall GF Score™ is 90/100 with 3 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 Shinyaku Co (TSE:4516), the current ROE % is 5.39% 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 Shinyaku Co (TSE:4516) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Shinyaku Co stock appears to be undervalued.
The current stock price of 円4,049.00 is trading 15.4% below its estimated GF Value™ of 円4,785.64.
GuruFocus considers Nippon Shinyaku Co to be Modestly Undervalued.
Key valuation signals for TSE:4516:
ROE %: 5.39% (56% below median its 10-year median of 12.28)
GF Value™: 円4,785.64 vs. price of 円4,049.00 (15.4% below fair value)
Industry Position: 8.1% below the Drug Manufacturers median (#299 of 936)
No single metric tells the full story. See the TSE:4516 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Shinyaku Co Ltd is engaged in the pharmaceuticals and functional food businesses. The Pharmaceuticals Business develops and sells treatments for urological disorders, blood cancer, rare and intractable diseases, and gynecological conditions. The Functional Food Business produces and sells health food ingredients, quality-stabilizing preservatives, protein preparations, and supplements. It generates the majority of its revenue from the Pharmaceuticals segment.
90GF Score
Get the complete analysis for TSE:4516
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:4516 has been successfully added to your 
