Japan Pure Chemical Co (TSE:4973) ROE %: 14.03% (As of Mar. 2026) — 77% Above Median

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TSE:4973 Japan Pure Chemical Co Ltd TSE:4973
70 GF Score
Price 円4,910.00
GF Value 円4,583.02
Valuation Fairly Valued
! 5 Warning Signs
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What is Japan Pure Chemical Co ROE %?

Japan Pure Chemical Co TSE:4973 -1.80% 70 ROE % is 14.03% as of Mar. 2026, which is 77% above its 10-year median of 7.93. GuruFocus rates TSE:4973 with a GF Score™ of 70/100 and a GF Value™ of 円4,583.02 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,583 Chemicals companies, Japan Pure Chemical Co ranks better than 77.38% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Japan Pure Chemical Co's annualized net income for the quarter that ended in Mar. 2026 was 円2,359 Mil. Japan Pure Chemical Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円16,816 Mil. Therefore, Japan Pure Chemical Co's annualized ROE % for the quarter that ended in Mar. 2026 was 14.03%.

The historical rank and industry rank for Japan Pure Chemical Co's ROE % or its related term are showing as below:

TSE:4973' s ROE % Range Over the Past 10 Years
Min: 3.91   Med: 7.93   Max: 11.46
Current: 11.46

During the past 13 years, Japan Pure Chemical Co's highest ROE % was 11.46%. The lowest was 3.91%. And the median was 7.93%.

TSE:4973's ROE % is ranked better than
77.38% of 1583 companies
in the Chemicals industry
Industry Median: 5.24 vs TSE:4973: 11.46

Japan Pure Chemical Co  (TSE:4973) 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:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=2359.056/16815.5315
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2359.056 / 21074)*(21074 / 20007.6095)*(20007.6095 / 16815.5315)
=Net Margin %*Asset Turnover*Equity Multiplier
=11.19 %*1.0533*1.1898
=ROA %*Equity Multiplier
=11.79 %*1.1898
=14.03 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=2359.056/16815.5315
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2359.056 / 3167.746) * (3167.746 / 609.788) * (609.788 / 21074) * (21074 / 20007.6095) * (20007.6095 / 16815.5315)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7447 * 5.1948 * 2.89 % * 1.0533 * 1.1898
=14.03 %

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.


Japan Pure Chemical Co ROE % Related Terms


Japan Pure Chemical Co ROE % Historical Data

* Premium members only.

The historical data trend for Japan Pure Chemical 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.

Japan Pure Chemical Co ROE % Chart

Japan Pure Chemical Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.09 4.11 3.91 11.23 11.40

Japan Pure Chemical Co Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.90 11.50 10.96 8.57 14.03

TSE:4973 vs LIN, SHW, ECL: ROE % Comparison

For the Specialty Chemicals subindustry, Japan Pure 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.


Japan Pure Chemical Co ROE % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Japan Pure Chemical Co's ROE % distribution charts can be found below:

* The bar in red indicates where Japan Pure Chemical Co's ROE % falls into.


TSE:4973
70GF Score
Japan Pure Chemical Co Ltd TSE:4973
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Japan Pure Chemical Co ROE % Calculation

Japan Pure Chemical Co's annualized ROE % for the fiscal year that ended in Mar. 2026 is calculated as

ROE %=Net Income (A: Mar. 2026 )/( (Total Stockholders Equity (A: Mar. 2025 )+Total Stockholders Equity (A: Mar. 2026 ))/ count )
=1803.98/( (13594.716+18064.72)/ 2 )
=1803.98/15829.718
=11.40 %

Japan Pure Chemical Co's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=2359.056/( (15566.343+18064.72)/ 2 )
=2359.056/16815.5315
=14.03 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 14.03% mean?
Japan Pure Chemical Co (TSE:4973) has a ROE % of 14.03% 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 Japan Pure Chemical Co and its competitors. This is 77% above median its historical median of 7.93. Over the past decade, Japan Pure Chemical Co's ROE % has ranged from 3.91 to 11.46. According to the industry distribution chart, Japan Pure Chemical Co ranks #358 out of 1583 companies in the Chemicals industry, placing it in the top 22.6%.
Is Japan Pure Chemical Co's ROE % too high?
Japan Pure Chemical Co's current ROE % of 14.03% is 77% above median its 10-year median of 7.93. Over the past 10 years, this metric has ranged from a low of 3.91 to a high of 11.46. The Chemicals industry median ROE % is 5.24. Japan Pure Chemical Co's value of 14.03% is 167.7% above this industry median. Based on the distribution chart, Japan Pure Chemical Co ranks #358 out of 1583 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Pure Chemical Co has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Japan Pure Chemical Co's ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Japan Pure Chemical Co ranks #358 out of 1583 companies for ROE %. This places Japan Pure Chemical Co in the top 23% of its industry — outperforming the majority of peers. The industry median ROE % is 5.24. Japan Pure Chemical Co's value of 14.03% is 167.7% above this benchmark. Historically, Japan Pure Chemical Co's own ROE % has ranged from 3.91 to 11.46 over the past decade. While the company's 10-year median is 7.93 vs. the industry median of 5.24, Japan Pure Chemical 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 5.24, based on 1,583 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. Japan Pure Chemical Co's current ROE % of 14.03% is 167.7% 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 Japan Pure Chemical Co and its competitors. For the Chemicals industry, the median ROE % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Pure Chemical Co's current ROE % is 14.03%, which is 77% above median its own 10-year median of 7.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Pure Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Japan Pure Chemical Co (TSE:4973) is currently considered Fairly Valued. The stock's GF Value™ is 円4,583.02, compared to a current price of 円4,910.00 — trading 7.1% above its estimated fair value. The current ROE % is 14.03%, which is 77% above median its 10-year median of 7.93 and 167.7% above the Chemicals industry median of 5.24. Japan Pure Chemical Co's overall GF Score™ is 70/100 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 Japan Pure Chemical Co (TSE:4973), the current ROE % is 14.03% 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 Japan Pure Chemical Co (TSE:4973) Overvalued in 2026?

Based on GuruFocus' analysis, Japan Pure Chemical Co stock appears to be overvalued. The current stock price of 円4,910.00 is trading 7.1% above its estimated GF Value™ of 円4,583.02. GuruFocus considers Japan Pure Chemical Co to be Fairly Valued.

Key valuation signals for TSE:4973:

  • ROE %: 14.03% (77% above median its 10-year median of 7.93)
  • GF Value™: 円4,583.02 vs. price of 円4,910.00 (7.1% above fair value)
  • GF Score™: 70/100 with 5 warning signs
  • Industry Position: 167.7% above the Chemicals median (#358 of 1583)

No single metric tells the full story. See the TSE:4973 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Japan Pure Chemical Co Business Description

Address 3-10-18 Kitamachi, Nerima-ku, Tokyo, JPN, 179-0081
Japan Pure Chemical Co Ltd develops, manufactures, and sells precious metal plating chemicals for electronic devices in Japan. It offers gold electroplating formulation for semiconductor applications such as connector and soldering uses; and palladium electroplating formulation for the connector, lead frame, and decorative uses. The firm also provides a gold coating for soldering and wire bonding; electroless palladium plating formulation for wire bonding and soldering uses; and silver plating formulations. In addition, it offers strike gold plating formulation that enhances the adherence of plated coatings.
70GF Score

Get the complete analysis for TSE:4973

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円4,910.00
Price
円4,583.02
GF Value