Daiken Co (TSE:5900) ROE %: 8.67% (As of Feb. 2026) — 280% Above Median

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TSE:5900 Daiken Co Ltd TSE:5900
73 GF Score
Price 円856.00
GF Value 円887.26
Valuation Fairly Valued
! 4 Warning Signs
View Full Analysis

What is Daiken Co ROE %?

Daiken Co TSE:5900 +1.06% 73 ROE % is 8.67% as of Feb. 2026, which is 280% above its 10-year median of 2.28. GuruFocus rates TSE:5900 with a GF Score™ of 73/100 and a GF Value™ of 円887.26 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,751 Construction companies, Daiken Co ranks worse than 68.76% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Daiken Co's annualized net income for the quarter that ended in Feb. 2026 was 円1,172 Mil. Daiken Co's average Total Stockholders Equity over the quarter that ended in Feb. 2026 was 円13,517 Mil. Therefore, Daiken Co's annualized ROE % for the quarter that ended in Feb. 2026 was 8.67%.

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

TSE:5900' s ROE % Range Over the Past 10 Years
Min: 1.46   Med: 2.28   Max: 2.68
Current: 1.97

During the past 13 years, Daiken Co's highest ROE % was 2.68%. The lowest was 1.46%. And the median was 2.28%.

TSE:5900's ROE % is ranked worse than
68.76% of 1751 companies
in the Construction industry
Industry Median: 6.79 vs TSE:5900: 1.97

Daiken Co  (TSE:5900) 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: Feb. 2026 )
=Net Income/Total Stockholders Equity
=1171.608/13517.2495
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1171.608 / 13854.956)*(13854.956 / 16627.5925)*(16627.5925 / 13517.2495)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.46 %*0.8333*1.2301
=ROA %*Equity Multiplier
=7.05 %*1.2301
=8.67 %

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: Feb. 2026 )
=Net Income/Total Stockholders Equity
=1171.608/13517.2495
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1171.608 / 1473.4) * (1473.4 / 913.24) * (913.24 / 13854.956) * (13854.956 / 16627.5925) * (16627.5925 / 13517.2495)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7952 * 1.6134 * 6.59 % * 0.8333 * 1.2301
=8.67 %

Note: The net income data used here is four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 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.


Daiken Co ROE % Related Terms


Daiken Co ROE % Historical Data

* Premium members only.

The historical data trend for Daiken 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.

Daiken Co ROE % Chart

Daiken Co Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.06 2.50 2.56 1.88 2.20

Daiken Co Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Feb25 May25 Aug25 Nov25 Feb26 May26
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 0.06 -0.57 0.61 8.67 -0.90

TSE:5900 vs TT, JCI, CARR: ROE % Comparison

For the Building Products & Equipment subindustry, Daiken 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.


Daiken Co ROE % vs Construction Industry

For the Construction industry and Industrials sector, Daiken Co's ROE % distribution charts can be found below:

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


TSE:5900
73GF Score
Daiken Co Ltd TSE:5900
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Daiken Co ROE % Calculation

Daiken Co's annualized ROE % for the fiscal year that ended in Feb. 2026 is calculated as

ROE %=Net Income (A: Feb. 2026 )/( (Total Stockholders Equity (A: Feb. 2025 )+Total Stockholders Equity (A: Feb. 2026 ))/ count )
=296.043/( (13206.443+13687.029)/ 2 )
=296.043/13446.736
=2.20 %

Daiken Co's annualized ROE % for the quarter that ended in Feb. 2026 is calculated as

ROE %=Net Income (Q: Feb. 2026 )/( (Total Stockholders Equity (Q: Nov. 2025 )+Total Stockholders Equity (Q: Feb. 2026 ))/ count )
=1171.608/( (13347.47+13687.029)/ 2 )
=1171.608/13517.2495
=8.67 %

* 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 (Feb. 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 8.67% mean?
Daiken Co (TSE:5900) has a ROE % of 8.67% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Daiken Co and its competitors. This is 280% above median its historical median of 2.28. Over the past decade, Daiken Co's ROE % has ranged from 1.46 to 2.68. According to the industry distribution chart, Daiken Co ranks #1204 out of 1751 companies in the Construction industry, placing it in the top 68.8%.
Is Daiken Co's ROE % too high?
Daiken Co's current ROE % of 8.67% is 280% above median its 10-year median of 2.28. Over the past 10 years, this metric has ranged from a low of 1.46 to a high of 2.68. The Construction industry median ROE % is 6.79. Daiken Co's value of 8.67% is 27.7% above this industry median. Based on the distribution chart, Daiken Co ranks #1204 out of 1751 companies in the Construction industry, which is below the industry midpoint. Overall, Daiken Co has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Daiken Co's ROE % compare to TT and JCI?
According to the Construction industry distribution chart, Daiken Co ranks #1204 out of 1751 companies for ROE %. This places Daiken Co in the lower half of its industry. The industry median ROE % is 6.79. Daiken Co's value of 8.67% is 27.7% above this benchmark. Historically, Daiken Co's own ROE % has ranged from 1.46 to 2.68 over the past decade. While the company's 10-year median is 2.28 vs. the industry median of 6.79, Daiken 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 Construction company?
The median ROE % among Construction companies is 6.79, based on 1,751 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. Daiken Co's current ROE % of 8.67% is 27.7% 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 Daiken Co and its competitors. For the Construction industry, the median ROE % is 6.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daiken Co's current ROE % is 8.67%, which is 280% above median its own 10-year median of 2.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiken Co stock overvalued right now?
Based on GuruFocus' analysis, Daiken Co (TSE:5900) is currently considered Fairly Valued. The stock's GF Value™ is 円887.26, compared to a current price of 円856.00 — trading 3.5% below its estimated fair value. The current ROE % is 8.67%, which is 280% above median its 10-year median of 2.28 and 27.7% above the Construction industry median of 6.79. Daiken Co's overall GF Score™ is 73/100 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 Daiken Co (TSE:5900), the current ROE % is 8.67% as of Feb. 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 Daiken Co (TSE:5900) Overvalued in 2026?

Based on GuruFocus' analysis, Daiken Co stock appears to be undervalued. The current stock price of 円856.00 is trading 3.5% below its estimated GF Value™ of 円887.26. GuruFocus considers Daiken Co to be Fairly Valued.

Key valuation signals for TSE:5900:

  • ROE %: 8.67% (280% above median its 10-year median of 2.28)
  • GF Value™: 円887.26 vs. price of 円856.00 (3.5% below fair value)
  • GF Score™: 73/100 with 4 warning signs
  • Industry Position: 27.7% above the Construction median (#1204 of 1751)

No single metric tells the full story. See the TSE:5900 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Daiken Co Business Description

Address 2-7-13, Shinko, Yodogawa-ku, Osaka, JPN, 532-0033
Daiken Co Ltd is a Japan based metal manufacturer. The company manufactures and sells architectural hardware, exterior building materials, exterior products, etc., and also carries out construction and installation work for these products. In addition, the company engaged in the real estate and construction business.
73GF Score

Get the complete analysis for TSE:5900

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

円856.00
Price
円887.26
GF Value