Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Muromachi ChemicalsTSE:4885 +0.11%76 ROE % is 13.78% as of Feb. 2026, which is 13% below its 10-year median of 15.80. GuruFocus rates TSE:4885 with a GF Score™ of 76/100 and a GF Value™ of 円990.45 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,590 Chemicals companies, Muromachi Chemicals ranks better than 51.64% on this metric.
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 (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 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.
Muromachi Chemicals ROE % Related Terms
Muromachi Chemicals ROE % Historical Data
* Premium members only.
The historical data trend for Muromachi Chemicals'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, Muromachi Chemicals'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.
Muromachi Chemicals ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Muromachi Chemicals's ROE % distribution charts can be found below:
* The bar in red indicates where Muromachi Chemicals'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 (Feb. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Muromachi Chemicals (TSE:4885) has a ROE % of 13.78% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Muromachi Chemicals and its competitors. This is 13% below median its historical median of 15.80. Over the past decade, Muromachi Chemicals' ROE % has ranged from 6.32 to 30.27. According to the industry distribution chart, Muromachi Chemicals ranks #769 out of 1590 companies in the Chemicals industry, placing it in the top 48.4%.
Is Muromachi Chemicals' ROE % too high?
Muromachi Chemicals' current ROE % of 13.78% is 13% below median its 10-year median of 15.80. Over the past 10 years, this metric has ranged from a low of 6.32 to a high of 30.27. The Chemicals industry median ROE % is 6.06. Muromachi Chemicals' value of 13.78% is 127.6% above this industry median. Based on the distribution chart, Muromachi Chemicals ranks #769 out of 1590 companies in the Chemicals industry, which is above the industry midpoint. Overall, Muromachi Chemicals has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Muromachi Chemicals' ROE % compare to DOW?
According to the Chemicals industry distribution chart, Muromachi Chemicals ranks #769 out of 1590 companies for ROE %. This puts Muromachi Chemicals in the upper half of its industry. The industry median ROE % is 6.06. Muromachi Chemicals' value of 13.78% is 127.6% above this benchmark. Historically, Muromachi Chemicals' own ROE % has ranged from 6.32 to 30.27 over the past decade. While the company's 10-year median is 15.80 vs. the industry median of 6.06, Muromachi Chemicals 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 6.06, based on 1,590 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. Muromachi Chemicals's current ROE % of 13.78% is 127.6% 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 Muromachi Chemicals and its competitors. For the Chemicals industry, the median ROE % is 6.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muromachi Chemicals's current ROE % is 13.78%, which is 13% below median its own 10-year median of 15.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muromachi Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Muromachi Chemicals (TSE:4885) is currently considered Fairly Valued. The stock's GF Value™ is 円990.45, compared to a current price of 円900.00 — trading 9.1% below its estimated fair value. The current ROE % is 13.78%, which is 13% below median its 10-year median of 15.80 and 127.6% above the Chemicals industry median of 6.06. Muromachi Chemicals' overall GF Score™ is 76/100 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 Muromachi Chemicals (TSE:4885), the current ROE % is 13.78% as of Feb. 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 Muromachi Chemicals (TSE:4885) Overvalued in 2026?
Based on GuruFocus' analysis, Muromachi Chemicals stock appears to be undervalued.
The current stock price of 円900.00 is trading 9.1% below its estimated GF Value™ of 円990.45.
GuruFocus considers Muromachi Chemicals to be Fairly Valued.
Key valuation signals for TSE:4885:
ROE %: 13.78% (13% below median its 10-year median of 15.80)
GF Value™: 円990.45 vs. price of 円900.00 (9.1% below fair value)
Industry Position: 127.6% above the Chemicals median (#769 of 1590)
No single metric tells the full story. See the TSE:4885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muromachi Chemicals Inc is engaged in the production and distribution of pharmaceuticals, planning, production, and distribution of health foods, and distribution and processing of ion-exchange resin products. The Company has three reportable segments based on business type: Pharmaceuticals Business, Health Food Business, and Chemicals Business.
76GF Score
Get the complete analysis for TSE:4885
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:4885 has been successfully added to your 
