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Nippon Denko CoTSE:5563 -1.17%72 ROE % is 5.56% as of Dec. 2025, which is 23% above its 10-year median of 4.53. GuruFocus rates TSE:5563 with a GF Score™ of 72/100 and a GF Value™ of 円308.34 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 619 Steel companies, Nippon Denko Co ranks worse than 54.77% on this metric.
The historical rank and industry rank for Nippon Denko Co's ROE % or its related term are showing as below:
TSE:5563'
s ROE % Range Over the Past 10 Years
Min: -23.11 Med: 4.53 Max: 12.88
Current: 2.72
During the past 13 years, Nippon Denko Co's highest ROE % was 12.88%. The lowest was -23.11%. And the median was 4.53%.
TSE:5563's ROE % is ranked worse than 54.77% of 619
companies
in the Steel industry
Industry Median: 3.7
vs TSE:5563: 2.72
Nippon Denko Co (TSE:5563) 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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 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.
Nippon Denko Co ROE % Related Terms
Nippon Denko Co ROE % Historical Data
* Premium members only.
The historical data trend for Nippon Denko 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 Steel subindustry, Nippon Denko 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 Denko Co ROE % vs Steel Industry
For the Steel industry and Basic Materials sector, Nippon Denko Co's ROE % distribution charts can be found below:
* The bar in red indicates where Nippon Denko 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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Nippon Denko Co (TSE:5563) has a ROE % of 5.56% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Nippon Denko Co and its competitors. This is 23% above median its historical median of 4.53. According to the industry distribution chart, Nippon Denko Co ranks #339 out of 619 companies in the Steel industry, placing it in the top 54.8%.
Is Nippon Denko Co's ROE % too high?
Nippon Denko Co's current ROE % of 5.56% is 23% above median its 10-year median of 4.53. The Steel industry median ROE % is 3.70. Nippon Denko Co's value of 5.56% is 50.3% above this industry median. Based on the distribution chart, Nippon Denko Co ranks #339 out of 619 companies in the Steel industry, which is below the industry midpoint. Overall, Nippon Denko Co has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Denko Co's ROE % compare to NUE and STLD?
According to the Steel industry distribution chart, Nippon Denko Co ranks #339 out of 619 companies for ROE %. This places Nippon Denko Co in the lower half of its industry. The industry median ROE % is 3.70. Nippon Denko Co's value of 5.56% is 50.3% above this benchmark. While the company's 10-year median is 4.53 vs. the industry median of 3.70, Nippon Denko 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 Steel company?
The median ROE % among Steel companies is 3.70, based on 619 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 Denko Co's current ROE % of 5.56% is 50.3% 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 Nippon Denko Co and its competitors. For the Steel industry, the median ROE % is 3.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Denko Co's current ROE % is 5.56%, which is 23% above median its own 10-year median of 4.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Denko Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Denko Co (TSE:5563) is currently considered Significantly Overvalued. The stock's GF Value™ is 円308.34, compared to a current price of 円422.00 — trading 36.9% above its estimated fair value. The current ROE % is 5.56%, which is 23% above median its 10-year median of 4.53 and 50.3% above the Steel industry median of 3.70. Nippon Denko Co's overall GF Score™ is 72/100 with 4 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 Denko Co (TSE:5563), the current ROE % is 5.56% as of Dec. 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 Nippon Denko Co (TSE:5563) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Denko Co stock appears to be overvalued.
The current stock price of 円422.00 is trading 36.9% above its estimated GF Value™ of 円308.34.
GuruFocus considers Nippon Denko Co to be Significantly Overvalued.
Key valuation signals for TSE:5563:
ROE %: 5.56% (23% above median its 10-year median of 4.53)
GF Value™: 円308.34 vs. price of 円422.00 (36.9% above fair value)
Industry Position: 50.3% above the Steel median (#339 of 619)
No single metric tells the full story. See the TSE:5563 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Denko Co Ltd is mainly engaged in the manufacturing and distribution of ferroalloys. In addition, it is also involved in the electric power generation. The company's core business activities are categorized into four segments: Ferroalloys, Functional Materials, Environment, and Other. The company serves a diverse range of markets including power companies, agricultural cooperatives, local governments and companies discharging industrial waste.
72GF Score
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