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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.
Tess Holdings Co ROE % Related Terms
Tess Holdings Co ROE % Historical Data
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The historical data trend for Tess Holdings 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 Utilities - Renewable subindustry, Tess Holdings 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.
Tess Holdings Co ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Tess Holdings Co's ROE % distribution charts can be found below:
* The bar in red indicates where Tess Holdings 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.
Tess Holdings Co (TSE:5074) has a ROE % of -0.45% 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 Tess Holdings Co and its competitors. Over the past decade, Tess Holdings Co's ROE % has ranged from 0.49 to 22.09. According to the industry distribution chart, Tess Holdings Co ranks #205 out of 441 companies in the Utilities - Independent Power Producers industry, placing it in the top 46.5%.
Is Tess Holdings Co's ROE % too high?
Tess Holdings Co's current ROE % is -0.45%. Over the past 10 years, this metric has ranged from a low of 0.49 to a high of 22.09. Based on the distribution chart, Tess Holdings Co ranks #205 out of 441 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Tess Holdings Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tess Holdings Co's ROE % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Tess Holdings Co ranks #205 out of 441 companies for ROE %. This puts Tess Holdings Co in the upper half of its industry. The industry median ROE % is 3.53. Historically, Tess Holdings Co's own ROE % has ranged from 0.49 to 22.09 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Utilities - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.53, based on 441 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. 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 Tess Holdings Co and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tess Holdings Co's current ROE % is -0.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tess Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Tess Holdings Co (TSE:5074) is currently considered Fairly Valued. The stock's GF Value™ is 円628.13, compared to a current price of 円634.00 — trading 0.9% above its estimated fair value. The current ROE % is -0.45%. Tess Holdings Co's overall GF Score™ is 75/100 with 7 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 Tess Holdings Co (TSE:5074), the current ROE % is -0.45% 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 Tess Holdings Co (TSE:5074) Overvalued in 2026?
Based on GuruFocus' analysis, Tess Holdings Co stock appears to be overvalued.
The current stock price of 円634.00 is trading 0.9% above its estimated GF Value™ of 円628.13.
GuruFocus considers Tess Holdings Co to be Fairly Valued.
Key valuation signals for TSE:5074:
ROE %: -0.45%
GF Value™: 円628.13 vs. price of 円634.00 (0.9% above fair value)
No single metric tells the full story. See the TSE:5074 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tess Holdings Co Ltd is engaged in the development and electricity sales of renewable power plants and power retailing business. Further, it is also involved in the operation and maintenance of cogeneration and other environmental energy-saving systems.
75GF Score
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