Nichia Steel WorksTSE:5658 -1.14%70 ROE % is 3.95% as of Mar. 2026, which is 82% above its 10-year median of 2.17. GuruFocus rates TSE:5658 with a GF Score™ of 70/100 and a GF Value™ of 円326.18 (Fairly Valued). The stock has 5 warning signs investors should review. Among 3,009 Industrial Products companies, Nichia Steel Works ranks worse than 68.36% on this metric.
The historical rank and industry rank for Nichia Steel Works's ROE % or its related term are showing as below:
TSE:5658'
s ROE % Range Over the Past 10 Years
Min: 0.89 Med: 2.17 Max: 3.74
Current: 1.94
During the past 13 years, Nichia Steel Works's highest ROE % was 3.74%. The lowest was 0.89%. And the median was 2.17%.
TSE:5658's ROE % is ranked worse than 68.36% of 3009
companies
in the Industrial Products industry
Industry Median: 5.91
vs TSE:5658: 1.94
Nichia Steel Works (TSE:5658) 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 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.
Nichia Steel Works ROE % Related Terms
Nichia Steel Works ROE % Historical Data
* Premium members only.
The historical data trend for Nichia Steel Works'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 Tools & Accessories subindustry, Nichia Steel Works'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.
Nichia Steel Works ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nichia Steel Works's ROE % distribution charts can be found below:
* The bar in red indicates where Nichia Steel Works'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 two times the semi-annual (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Nichia Steel Works (TSE:5658) has a ROE % of 3.95% 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 Nichia Steel Works and its competitors. This is 82% above median its historical median of 2.17. Over the past decade, Nichia Steel Works' ROE % has ranged from 0.89 to 3.74. According to the industry distribution chart, Nichia Steel Works ranks #2057 out of 3009 companies in the Industrial Products industry, placing it in the top 68.4%.
Is Nichia Steel Works' ROE % too high?
Nichia Steel Works' current ROE % of 3.95% is 82% above median its 10-year median of 2.17. Over the past 10 years, this metric has ranged from a low of 0.89 to a high of 3.74. The Industrial Products industry median ROE % is 5.91. Nichia Steel Works' value of 3.95% is 33.2% below this industry median. Based on the distribution chart, Nichia Steel Works ranks #2057 out of 3009 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Nichia Steel Works has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nichia Steel Works' ROE % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Nichia Steel Works ranks #2057 out of 3009 companies for ROE %. This places Nichia Steel Works in the lower half of its industry. The industry median ROE % is 5.91. Nichia Steel Works' value of 3.95% is 33.2% below this benchmark. Historically, Nichia Steel Works' own ROE % has ranged from 0.89 to 3.74 over the past decade. While the company's 10-year median is 2.17 vs. the industry median of 5.91, Nichia Steel Works 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 an Industrial Products company?
The median ROE % among Industrial Products companies is 5.91, based on 3,009 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. Nichia Steel Works's current ROE % of 3.95% is 33.2% 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 Nichia Steel Works and its competitors. For the Industrial Products industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nichia Steel Works's current ROE % is 3.95%, which is 82% above median its own 10-year median of 2.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nichia Steel Works stock overvalued right now?
Based on GuruFocus' analysis, Nichia Steel Works (TSE:5658) is currently considered Fairly Valued. The stock's GF Value™ is 円326.18, compared to a current price of 円346.00 — trading 6.1% above its estimated fair value. The current ROE % is 3.95%, which is 82% above median its 10-year median of 2.17 and 33.2% below the Industrial Products industry median of 5.91. Nichia Steel Works' 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 Nichia Steel Works (TSE:5658), the current ROE % is 3.95% 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 Nichia Steel Works (TSE:5658) Overvalued in 2026?
Based on GuruFocus' analysis, Nichia Steel Works stock appears to be overvalued.
The current stock price of 円346.00 is trading 6.1% above its estimated GF Value™ of 円326.18.
GuruFocus considers Nichia Steel Works to be Fairly Valued.
Key valuation signals for TSE:5658:
ROE %: 3.95% (82% above median its 10-year median of 2.17)
GF Value™: 円326.18 vs. price of 円346.00 (6.1% above fair value)
Industry Position: 33.2% below the Industrial Products median (#2057 of 3009)
No single metric tells the full story. See the TSE:5658 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nichia Steel Works Ltd is a manufacturer of steel wire products, fasteners and related products. The products are used in various fields such as construction and civil infrastructure. It offers low carbon steel wire products, hard drawn steel wire products, fasteners & special products and other special finished products.
70GF Score
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