Novac CoTSE:5079 +0.48%56 ROE % is 5.75% as of Oct. 2025, which is 42% below its 10-year median of 9.86. GuruFocus rates TSE:5079 with a GF Score™ of 56/100 and a GF Value™ of 円3,312.10 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,742 Construction companies, Novac Co ranks worse than 67.74% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Novac Co's annualized net income for the quarter that ended in Oct. 2025 was 円1,045 Mil. Novac Co's average Total Stockholders Equity over the quarter that ended in Oct. 2025 was 円18,161 Mil. Therefore, Novac Co's annualized ROE % for the quarter that ended in Oct. 2025 was 5.75%.
The historical rank and industry rank for Novac Co's ROE % or its related term are showing as below:
TSE:5079'
s ROE % Range Over the Past 10 Years
Min: 1.55 Med: 9.86 Max: 13.33
Current: 2.21
During the past 7 years, Novac Co's highest ROE % was 13.33%. The lowest was 1.55%. And the median was 9.86%.
TSE:5079's ROE % is ranked worse than 67.74% of 1742
companies
in the Construction industry
Industry Median: 6.69
vs TSE:5079: 2.21
Novac Co (TSE:5079) 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 (Oct. 2025) net income data. The Revenue data used here is four times the quarterly (Oct. 2025) 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.
Novac Co ROE % Related Terms
Novac Co ROE % Historical Data
* Premium members only.
The historical data trend for Novac 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 Engineering & Construction subindustry, Novac 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.
Novac Co ROE % vs Construction Industry
For the Construction industry and Industrials sector, Novac Co's ROE % distribution charts can be found below:
* The bar in red indicates where Novac 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 (Oct. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Novac Co (TSE:5079) has a ROE % of 5.75% as of Oct. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Novac Co and its competitors. This is 42% below median its historical median of 9.86. Over the past decade, Novac Co's ROE % has ranged from 1.55 to 13.33. According to the industry distribution chart, Novac Co ranks #1180 out of 1742 companies in the Construction industry, placing it in the top 67.7%.
Is Novac Co's ROE % too high?
Novac Co's current ROE % of 5.75% is 42% below median its 10-year median of 9.86. Over the past 10 years, this metric has ranged from a low of 1.55 to a high of 13.33. The Construction industry median ROE % is 6.69. Novac Co's value of 5.75% is 14.1% below this industry median. Based on the distribution chart, Novac Co ranks #1180 out of 1742 companies in the Construction industry, which is below the industry midpoint. Overall, Novac Co has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Novac Co's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Novac Co ranks #1180 out of 1742 companies for ROE %. This places Novac Co in the lower half of its industry. The industry median ROE % is 6.69. Novac Co's value of 5.75% is 14.1% below this benchmark. Historically, Novac Co's own ROE % has ranged from 1.55 to 13.33 over the past decade. While the company's 10-year median is 9.86 vs. the industry median of 6.69, Novac 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 Construction company?
The median ROE % among Construction companies is 6.69, based on 1,742 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. Novac Co's current ROE % of 5.75% is 14.1% 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 Novac Co and its competitors. For the Construction industry, the median ROE % is 6.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novac Co's current ROE % is 5.75%, which is 42% below median its own 10-year median of 9.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novac Co stock overvalued right now?
Based on GuruFocus' analysis, Novac Co (TSE:5079) is currently considered Modestly Undervalued. The stock's GF Value™ is 円3,312.10, compared to a current price of 円2,508.00 — trading 24.3% below its estimated fair value. The current ROE % is 5.75%, which is 42% below median its 10-year median of 9.86 and 14.1% below the Construction industry median of 6.69. Novac Co's overall GF Score™ is 56/100 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 Novac Co (TSE:5079), the current ROE % is 5.75% as of Oct. 2025. 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 Novac Co (TSE:5079) Overvalued in 2026?
Based on GuruFocus' analysis, Novac Co stock appears to be undervalued.
The current stock price of 円2,508.00 is trading 24.3% below its estimated GF Value™ of 円3,312.10.
GuruFocus considers Novac Co to be Modestly Undervalued.
Key valuation signals for TSE:5079:
ROE %: 5.75% (42% below median its 10-year median of 9.86)
GF Value™: 円3,312.10 vs. price of 円2,508.00 (24.3% below fair value)
Industry Position: 14.1% below the Construction median (#1180 of 1742)
No single metric tells the full story. See the TSE:5079 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Novac Co Ltd is engaged in civil engineering, building construction, and other related activities. Its reportable segments are the civil engineering business and the construction works business. Maximum revenue is generated from the construction works business, which mainly carries out construction works based on orders received for apartment buildings, schools, welfare facilities, government buildings, offices, and highway service areas. The civil engineering business mainly carries out social infrastructure construction works (road construction, river construction, water supply and sewerage construction, land development construction) ordered by public agencies.
56GF Score
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