Zenhoren CoTSE:5845 +0.20%39 ROE % is 17.45% as of Mar. 2026, which is 50% below its 10-year median of 34.87. GuruFocus rates TSE:5845 with a GF Score™ of 39/100 and a GF Value™ of 円886.33 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,058 Business Services companies, Zenhoren Co ranks better than 85.54% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Zenhoren Co's annualized net income for the quarter that ended in Mar. 2026 was 円1,352 Mil. Zenhoren Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円7,746 Mil. Therefore, Zenhoren Co's annualized ROE % for the quarter that ended in Mar. 2026 was 17.45%.
The historical rank and industry rank for Zenhoren Co's ROE % or its related term are showing as below:
TSE:5845'
s ROE % Range Over the Past 10 Years
Min: 22.61 Med: 34.87 Max: 49.5
Current: 22.85
During the past 5 years, Zenhoren Co's highest ROE % was 49.50%. The lowest was 22.61%. And the median was 34.87%.
TSE:5845's ROE % is ranked better than 85.54% of 1058
companies
in the Business Services industry
Industry Median: 8.095
vs TSE:5845: 22.85
Zenhoren Co (TSE:5845) 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.
Zenhoren Co ROE % Related Terms
Zenhoren Co ROE % Historical Data
* Premium members only.
The historical data trend for Zenhoren 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 Specialty Business Services subindustry, Zenhoren 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.
Zenhoren Co ROE % vs Business Services Industry
For the Business Services industry and Industrials sector, Zenhoren Co's ROE % distribution charts can be found below:
* The bar in red indicates where Zenhoren 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 two times the semi-annual (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Zenhoren Co (TSE:5845) has a ROE % of 17.45% 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 Zenhoren Co and its competitors. This is 50% below median its historical median of 34.87. Over the past decade, Zenhoren Co's ROE % has ranged from 22.61 to 49.50. According to the industry distribution chart, Zenhoren Co ranks #153 out of 1058 companies in the Business Services industry, placing it in the top 14.5%.
Is Zenhoren Co's ROE % too high?
Zenhoren Co's current ROE % of 17.45% is 50% below median its 10-year median of 34.87. Over the past 10 years, this metric has ranged from a low of 22.61 to a high of 49.50. The Business Services industry median ROE % is 8.10. Zenhoren Co's value of 17.45% is 115.6% above this industry median. Based on the distribution chart, Zenhoren Co ranks #153 out of 1058 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Zenhoren Co has a GF Score™ of 39/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zenhoren Co's ROE % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Zenhoren Co ranks #153 out of 1058 companies for ROE %. This places Zenhoren Co in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 8.10. Zenhoren Co's value of 17.45% is 115.6% above this benchmark. Historically, Zenhoren Co's own ROE % has ranged from 22.61 to 49.50 over the past decade. While the company's 10-year median is 34.87 vs. the industry median of 8.10, Zenhoren 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 Business Services company?
The median ROE % among Business Services companies is 8.10, based on 1,058 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. Zenhoren Co's current ROE % of 17.45% is 115.6% 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 Zenhoren Co and its competitors. For the Business Services industry, the median ROE % is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zenhoren Co's current ROE % is 17.45%, which is 50% below median its own 10-year median of 34.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenhoren Co stock overvalued right now?
Based on GuruFocus' analysis, Zenhoren Co (TSE:5845) is currently considered Modestly Overvalued. The stock's GF Value™ is 円886.33, compared to a current price of 円996.00 — trading 12.4% above its estimated fair value. The current ROE % is 17.45%, which is 50% below median its 10-year median of 34.87 and 115.6% above the Business Services industry median of 8.10. Zenhoren Co's overall GF Score™ is 39/100 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 Zenhoren Co (TSE:5845), the current ROE % is 17.45% 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 Zenhoren Co (TSE:5845) Overvalued in 2026?
Based on GuruFocus' analysis, Zenhoren Co stock appears to be overvalued.
The current stock price of 円996.00 is trading 12.4% above its estimated GF Value™ of 円886.33.
GuruFocus considers Zenhoren Co to be Modestly Overvalued.
Key valuation signals for TSE:5845:
ROE %: 17.45% (50% below median its 10-year median of 34.87)
GF Value™: 円886.33 vs. price of 円996.00 (12.4% above fair value)
Industry Position: 115.6% above the Business Services median (#153 of 1058)
No single metric tells the full story. See the TSE:5845 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zenhoren Co Ltd is engaged in the rent liability guarantee business, providing rent guarantee services for residential properties with coverage of up to 24 months rent, including monthly rent, moving-out settlement fees, and tenant accident expense insurance. For business use, the Z-Business NEO service covers stores and offices with guarantees up to 24 months rent. The company also offers guarantees for parking lots and trunk rooms, the Z-value service for combined rent guarantee and fire insurance via smartphone, and Z-WEB/Z-WEB2.0 for centralized management by real estate companies. In addition, Zenhoren provides Z-College Support (tuition guarantee), enabling vocational schools and students to pay tuition fees in installments.
39GF Score
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