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.
* 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, Mitsubishi Steel Mfg.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.
Mitsubishi Steel Mfg.Co ROE % vs Steel Industry
For the Steel industry and Basic Materials sector, Mitsubishi Steel Mfg.Co's ROE % distribution charts can be found below:
* The bar in red indicates where Mitsubishi Steel Mfg.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.
Mitsubishi Steel Mfg.Co (TSE:5632) has a ROE % of 18.01% 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 Mitsubishi Steel Mfg.Co and its competitors. This is 267% above median its historical median of 4.91. According to the industry distribution chart, Mitsubishi Steel Mfg.Co ranks #210 out of 620 companies in the Steel industry, placing it in the top 33.9%.
Is Mitsubishi Steel Mfg.Co's ROE % too high?
Mitsubishi Steel Mfg.Co's current ROE % of 18.01% is 267% above median its 10-year median of 4.91. The Steel industry median ROE % is 3.68. Mitsubishi Steel Mfg.Co's value of 18.01% is 389.4% above this industry median. Based on the distribution chart, Mitsubishi Steel Mfg.Co ranks #210 out of 620 companies in the Steel industry, which is above the industry midpoint. Overall, Mitsubishi Steel Mfg.Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mitsubishi Steel Mfg.Co's ROE % compare to NUE and STLD?
According to the Steel industry distribution chart, Mitsubishi Steel Mfg.Co ranks #210 out of 620 companies for ROE %. This puts Mitsubishi Steel Mfg.Co in the upper half of its industry. The industry median ROE % is 3.68. Mitsubishi Steel Mfg.Co's value of 18.01% is 389.4% above this benchmark. While the company's 10-year median is 4.91 vs. the industry median of 3.68, Mitsubishi Steel Mfg.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 3.68, based on 620 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. Mitsubishi Steel Mfg.Co's current ROE % of 18.01% is 389.4% 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 Mitsubishi Steel Mfg.Co and its competitors. For the Steel industry, the median ROE % is 3.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mitsubishi Steel Mfg.Co's current ROE % is 18.01%, which is 267% above median its own 10-year median of 4.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mitsubishi Steel Mfg.Co stock overvalued right now?
Based on GuruFocus' analysis, Mitsubishi Steel Mfg.Co (TSE:5632) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,396.39, compared to a current price of 円2,177.00 — trading 55.9% above its estimated fair value. The current ROE % is 18.01%, which is 267% above median its 10-year median of 4.91 and 389.4% above the Steel industry median of 3.68. Mitsubishi Steel Mfg.Co's overall GF Score™ is 58/100 with 8 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 Mitsubishi Steel Mfg.Co (TSE:5632), the current ROE % is 18.01% 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 Mitsubishi Steel Mfg.Co (TSE:5632) Overvalued in 2026?
Based on GuruFocus' analysis, Mitsubishi Steel Mfg.Co stock appears to be overvalued.
The current stock price of 円2,177.00 is trading 55.9% above its estimated GF Value™ of 円1,396.39.
GuruFocus considers Mitsubishi Steel Mfg.Co to be Significantly Overvalued.
Key valuation signals for TSE:5632:
ROE %: 18.01% (267% above median its 10-year median of 4.91)
GF Value™: 円1,396.39 vs. price of 円2,177.00 (55.9% above fair value)
Industry Position: 389.4% above the Steel median (#210 of 620)
No single metric tells the full story. See the TSE:5632 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mitsubishi Steel Mfg.Co Ltd engages in the manufacture and sale of special steels, spring, casting and forging materials, and machinery. It offers its products in varied categories; special steel bars unit handles the manufacture and sale of steel bars that includes machine structural alloy steel, carbon steel for machine structural use, and bearing steel. Springs products include coil, leaf, and precision springs, press assembly, and shoe plate for rubber pad. Formed and fabricated products cover the manufacture and sale of steel and precision casting, precision machined component, alloy material, and special alloy and fine powder. Machinery business manufactures and sells press machine, general industrial and plant machinery, environmental equipment, and magnetic separator.
58GF Score
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