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The historical rank and industry rank for Okamoto Machine Tool Works's ROE % or its related term are showing as below:
TSE:6125'
s ROE % Range Over the Past 10 Years
Min: 2.97 Med: 14.33 Max: 27
Current: 2.98
During the past 13 years, Okamoto Machine Tool Works's highest ROE % was 27.00%. The lowest was 2.97%. And the median was 14.33%.
TSE:6125's ROE % is ranked worse than 63.25% of 3001
companies
in the Industrial Products industry
Industry Median: 5.86
vs TSE:6125: 2.98
Okamoto Machine Tool Works (TSE:6125) 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.
* 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 Industrial Machinery subindustry, Okamoto Machine Tool 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.
Okamoto Machine Tool Works ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Okamoto Machine Tool Works's ROE % distribution charts can be found below:
* The bar in red indicates where Okamoto Machine Tool 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.
Okamoto Machine Tool Works (TSE:6125) has a ROE % of 3.71% 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 Okamoto Machine Tool Works and its competitors. This is 74% below median its historical median of 14.33. Over the past decade, Okamoto Machine Tool Works' ROE % has ranged from 2.97 to 27.00. According to the industry distribution chart, Okamoto Machine Tool Works ranks #1898 out of 3001 companies in the Industrial Products industry, placing it in the top 63.2%.
Is Okamoto Machine Tool Works' ROE % too high?
Okamoto Machine Tool Works' current ROE % of 3.71% is 74% below median its 10-year median of 14.33. Over the past 10 years, this metric has ranged from a low of 2.97 to a high of 27.00. The Industrial Products industry median ROE % is 5.86. Okamoto Machine Tool Works' value of 3.71% is 36.7% below this industry median. Based on the distribution chart, Okamoto Machine Tool Works ranks #1898 out of 3001 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Okamoto Machine Tool Works has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Okamoto Machine Tool Works' ROE % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Okamoto Machine Tool Works ranks #1898 out of 3001 companies for ROE %. This places Okamoto Machine Tool Works in the lower half of its industry. The industry median ROE % is 5.86. Okamoto Machine Tool Works' value of 3.71% is 36.7% below this benchmark. Historically, Okamoto Machine Tool Works' own ROE % has ranged from 2.97 to 27.00 over the past decade. While the company's 10-year median is 14.33 vs. the industry median of 5.86, Okamoto Machine Tool 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 5.86, based on 3,001 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. Okamoto Machine Tool Works's current ROE % of 3.71% is 36.7% 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 Okamoto Machine Tool Works and its competitors. For the Industrial Products industry, the median ROE % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Okamoto Machine Tool Works's current ROE % is 3.71%, which is 74% below median its own 10-year median of 14.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Okamoto Machine Tool Works stock overvalued right now?
Based on GuruFocus' analysis, Okamoto Machine Tool Works (TSE:6125) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,504.13, compared to a current price of 円5,160.00 — trading 47.3% above its estimated fair value. The current ROE % is 3.71%, which is 74% below median its 10-year median of 14.33 and 36.7% below the Industrial Products industry median of 5.86. Okamoto Machine Tool Works' overall GF Score™ is 61/100 with 12 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 Okamoto Machine Tool Works (TSE:6125), the current ROE % is 3.71% 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 Okamoto Machine Tool Works (TSE:6125) Overvalued in 2026?
Based on GuruFocus' analysis, Okamoto Machine Tool Works stock appears to be overvalued.
The current stock price of 円5,160.00 is trading 47.3% above its estimated GF Value™ of 円3,504.13.
GuruFocus considers Okamoto Machine Tool Works to be Significantly Overvalued.
Key valuation signals for TSE:6125:
ROE %: 3.71% (74% below median its 10-year median of 14.33)
GF Value™: 円3,504.13 vs. price of 円5,160.00 (47.3% above fair value)
Industry Position: 36.7% below the Industrial Products median (#1898 of 3001)
No single metric tells the full story. See the TSE:6125 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Okamoto Machine Tool Works Ltd is engaged in the manufacture and sale of various grinding machines and semiconductor-related manufacturing equipment. The company's reportable segments are the machine tool business and the semiconductor-related equipment business. The majority of its revenue is generated from the machine tools business, which mainly produces and sells grinding machines, precision gears, and castings. The semiconductor-related equipment business manufactures and sells polishing machines, grinding machines, and slicing machines.
61GF Score
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