Nalnet Communications (TSE:5870) ROE %: 14.34% (As of Mar. 2026) — 45% Above Median

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TSE:5870 Nalnet Communications Inc TSE:5870
15 GF Score
Price 円826.00
! 1 Warning Sign
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What is Nalnet Communications ROE %?

Nalnet Communications TSE:5870 +3.38% 15 ROE % is 14.34% as of Mar. 2026, which is 45% above its 10-year median of 9.87. GuruFocus rates TSE:5870 with a GF Score™ of 15/100. The stock has 1 warning sign investors should review. Among 1,306 Vehicles & Parts companies, Nalnet Communications ranks better than 78.25% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Nalnet Communications's annualized net income for the quarter that ended in Mar. 2026 was 円533 Mil. Nalnet Communications's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円3,719 Mil. Therefore, Nalnet Communications's annualized ROE % for the quarter that ended in Mar. 2026 was 14.34%.

The historical rank and industry rank for Nalnet Communications's ROE % or its related term are showing as below:

TSE:5870' s ROE % Range Over the Past 10 Years
Min: 7.11   Med: 9.87   Max: 23.08
Current: 13.85

During the past 5 years, Nalnet Communications's highest ROE % was 23.08%. The lowest was 7.11%. And the median was 9.87%.

TSE:5870's ROE % is ranked better than
78.25% of 1306 companies
in the Vehicles & Parts industry
Industry Median: 6.62 vs TSE:5870: 13.85

Nalnet Communications  (TSE:5870) 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
=533.336/3719.4895
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(533.336 / 10603.946)*(10603.946 / 9916.26)*(9916.26 / 3719.4895)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.03 %*1.0693*2.666
=ROA %*Equity Multiplier
=5.38 %*2.666
=14.34 %

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
=533.336/3719.4895
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (533.336 / 824.86) * (824.86 / 840.648) * (840.648 / 10603.946) * (10603.946 / 9916.26) * (9916.26 / 3719.4895)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6466 * 0.9812 * 7.93 % * 1.0693 * 2.666
=14.34 %

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.


Nalnet Communications ROE % Related Terms


Nalnet Communications ROE % Historical Data

* Premium members only.

The historical data trend for Nalnet Communications'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.

Nalnet Communications ROE % Chart

Nalnet Communications Annual Data
Trend Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
8.03 23.08 9.87 7.11 13.78

Nalnet Communications Semi-Annual Data
Mar22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
ROE % Get a 7-Day Free Trial 7.00 5.01 9.34 13.41 14.34

TSE:5870 vs CVNA, PAG, ALTB: ROE % Comparison

For the Auto & Truck Dealerships subindustry, Nalnet Communications'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.


Nalnet Communications ROE % vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Nalnet Communications's ROE % distribution charts can be found below:

* The bar in red indicates where Nalnet Communications's ROE % falls into.


TSE:5870
15GF Score
Nalnet Communications Inc TSE:5870
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Nalnet Communications ROE % Calculation

Nalnet Communications's annualized ROE % for the fiscal year that ended in Mar. 2026 is calculated as

ROE %=Net Income (A: Mar. 2026 )/( (Total Stockholders Equity (A: Mar. 2025 )+Total Stockholders Equity (A: Mar. 2026 ))/ count )
=501.865/( (3428.624+3853.704)/ 2 )
=501.865/3641.164
=13.78 %

Nalnet Communications'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 )
=533.336/( (3585.275+3853.704)/ 2 )
=533.336/3719.4895
=14.34 %

* 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 14.34% mean?
Nalnet Communications (TSE:5870) has a ROE % of 14.34% 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 Nalnet Communications and its competitors. This is 45% above median its historical median of 9.87. Over the past decade, Nalnet Communications' ROE % has ranged from 7.11 to 23.08. According to the industry distribution chart, Nalnet Communications ranks #284 out of 1306 companies in the Vehicles & Parts industry, placing it in the top 21.7%.
Is Nalnet Communications' ROE % too high?
Nalnet Communications' current ROE % of 14.34% is 45% above median its 10-year median of 9.87. Over the past 10 years, this metric has ranged from a low of 7.11 to a high of 23.08. The Vehicles & Parts industry median ROE % is 6.62. Nalnet Communications' value of 14.34% is 116.6% above this industry median. Based on the distribution chart, Nalnet Communications ranks #284 out of 1306 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Nalnet Communications has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Nalnet Communications' ROE % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Nalnet Communications ranks #284 out of 1306 companies for ROE %. This places Nalnet Communications in the top 22% of its industry — outperforming the majority of peers. The industry median ROE % is 6.62. Nalnet Communications' value of 14.34% is 116.6% above this benchmark. Historically, Nalnet Communications' own ROE % has ranged from 7.11 to 23.08 over the past decade. While the company's 10-year median is 9.87 vs. the industry median of 6.62, Nalnet Communications 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 Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,306 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. Nalnet Communications's current ROE % of 14.34% is 116.6% 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 Nalnet Communications and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nalnet Communications's current ROE % is 14.34%, which is 45% above median its own 10-year median of 9.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nalnet Communications stock overvalued right now?
Nalnet Communications (TSE:5870) has a current ROE % of 14.34%. The current ROE % is 14.34%, which is 45% above median its 10-year median of 9.87 and 116.6% above the Vehicles & Parts industry median of 6.62. Nalnet Communications' overall GF Score™ is 15/100 with 1 warning sign 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 Nalnet Communications (TSE:5870), the current ROE % is 14.34% 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.

Nalnet Communications Business Description

Address 5-1-16 Shimoichiba-cho, Aichi, Kasugai-shi, JPN, 486-0852
Nalnet Communications Inc is a vehicle management and maintenance management business for automobile-related companies such as auto leasing companies and individual users.
15GF Score

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

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