Asaka Riken Co (TSE:5724) ROE %: 19.05% (As of Mar. 2026) — 131% Above Median


TSE:5724 Asaka Riken Co Ltd TSE:5724
48 GF Score
Price 円2,516.00
GF Value 円1,265.83
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Asaka Riken Co ROE %?

Asaka Riken Co TSE:5724 +5.05% 48 ROE % is 19.05% as of Mar. 2026, which is 131% above its 10-year median of 8.25. GuruFocus rates TSE:5724 with a GF Score™ of 48/100 and a GF Value™ of 円1,265.83 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,389 Metals & Mining companies, Asaka Riken Co ranks better than 84.43% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Asaka Riken Co's annualized net income for the quarter that ended in Mar. 2026 was 円988 Mil. Asaka Riken Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円5,185 Mil. Therefore, Asaka Riken Co's annualized ROE % for the quarter that ended in Mar. 2026 was 19.05%.

The historical rank and industry rank for Asaka Riken Co's ROE % or its related term are showing as below:

TSE:5724' s ROE % Range Over the Past 10 Years
Min: 2.69   Med: 8.25   Max: 16.27
Current: 13.19

During the past 13 years, Asaka Riken Co's highest ROE % was 16.27%. The lowest was 2.69%. And the median was 8.25%.

TSE:5724's ROE % is ranked better than
84.43% of 2389 companies
in the Metals & Mining industry
Industry Median: -16.14 vs TSE:5724: 13.19

Asaka Riken Co  (TSE:5724) 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:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=988.058/5185.396
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(988.058 / 10566.622)*(10566.622 / 15453.122)*(15453.122 / 5185.396)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.35 %*0.6838*2.9801
=ROA %*Equity Multiplier
=6.39 %*2.9801
=19.05 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=988.058/5185.396
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (988.058 / 1272.782) * (1272.782 / 1435.966) * (1435.966 / 10566.622) * (10566.622 / 15453.122) * (15453.122 / 5185.396)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7763 * 0.8864 * 13.59 % * 0.6838 * 2.9801
=19.05 %

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.


Asaka Riken Co ROE % Related Terms


Asaka Riken Co ROE % Historical Data

* Premium members only.

The historical data trend for Asaka Riken 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.

Asaka Riken Co ROE % Chart

Asaka Riken Co Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.36 16.27 7.35 8.35 6.27

Asaka Riken Co Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.63 7.10 5.54 7.04 19.05

Asaka Riken Co ROE % Competitor Comparison

For the Other Industrial Metals & Mining subindustry, Asaka Riken 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.


Asaka Riken Co ROE % vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Asaka Riken Co's ROE % distribution charts can be found below:

* The bar in red indicates where Asaka Riken Co's ROE % falls into.


TSE:5724
48GF Score
Asaka Riken Co Ltd TSE:5724
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Asaka Riken Co ROE % Calculation

Asaka Riken Co's annualized ROE % for the fiscal year that ended in Sep. 2025 is calculated as

ROE %=Net Income (A: Sep. 2025 )/( (Total Stockholders Equity (A: Sep. 2024 )+Total Stockholders Equity (A: Sep. 2025 ))/ count )
=300.24/( (4649.687+4925.745)/ 2 )
=300.24/4787.716
=6.27 %

Asaka Riken Co's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=988.058/( (4925.745+5445.047)/ 2 )
=988.058/5185.396
=19.05 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 19.05% mean?
Asaka Riken Co (TSE:5724) has a ROE % of 19.05% 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 Asaka Riken Co and its competitors. This is 131% above median its historical median of 8.25. Over the past decade, Asaka Riken Co's ROE % has ranged from 2.69 to 16.27. According to the industry distribution chart, Asaka Riken Co ranks #372 out of 2389 companies in the Metals & Mining industry, placing it in the top 15.6%.
Is Asaka Riken Co's ROE % too high?
Asaka Riken Co's current ROE % of 19.05% is 131% above median its 10-year median of 8.25. Over the past 10 years, this metric has ranged from a low of 2.69 to a high of 16.27. Based on the distribution chart, Asaka Riken Co ranks #372 out of 2389 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Asaka Riken Co has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Asaka Riken Co's ROE % compare to competitors?
According to the Metals & Mining industry distribution chart, Asaka Riken Co ranks #372 out of 2389 companies for ROE %. This places Asaka Riken Co in the top 16% of its industry — outperforming the majority of peers. Historically, Asaka Riken Co's own ROE % has ranged from 2.69 to 16.27 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 a Metals & Mining company?
A good ROE % depends on the Metals & Mining industry context. 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 Asaka Riken Co and its competitors. Asaka Riken Co's current ROE % is 19.05%, which is 131% above median its own 10-year median of 8.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asaka Riken Co stock overvalued right now?
Based on GuruFocus' analysis, Asaka Riken Co (TSE:5724) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,265.83, compared to a current price of 円2,516.00 — trading 98.8% above its estimated fair value. The current ROE % is 19.05%, which is 131% above median its 10-year median of 8.25. Asaka Riken Co's overall GF Score™ is 48/100 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 Asaka Riken Co (TSE:5724), the current ROE % is 19.05% 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 Asaka Riken Co (TSE:5724) Overvalued in 2026?

Based on GuruFocus' analysis, Asaka Riken Co stock appears to be overvalued. The current stock price of 円2,516.00 is trading 98.8% above its estimated GF Value™ of 円1,265.83. GuruFocus considers Asaka Riken Co to be Significantly Overvalued.

Key valuation signals for TSE:5724:

  • ROE %: 19.05% (131% above median its 10-year median of 8.25)
  • GF Value™: 円1,265.83 vs. price of 円2,516.00 (98.8% above fair value)
  • GF Score™: 48/100 with 4 warning signs

No single metric tells the full story. See the TSE:5724 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Asaka Riken Co Business Description

Address Tamura Tamura, Tamuramachikanaya Koriyama, Koriyama-shi, Fukushima, JPN, 963-0725
Asaka Riken Co Ltd is engaged in developing eco businesses through metal recycling, photocatalyst, and water treatment businesses.
48GF Score

Get the complete analysis for TSE:5724

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円2,516.00
Price
円1,265.83
GF Value