Foster Electric Co (TSE:6794) ROE %: 7.18% (As of Mar. 2026) — 207% Above Median

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TSE:6794 Foster Electric Co Ltd TSE:6794
68 GF Score
Price 円2,833.00
GF Value 円1,588.96
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Foster Electric Co ROE %?

Foster Electric Co TSE:6794 -0.81% 68 ROE % is 7.18% as of Mar. 2026, which is 207% above its 10-year median of 2.34. GuruFocus rates TSE:6794 with a GF Score™ of 68/100 and a GF Value™ of 円1,588.96 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,427 Hardware companies, Foster Electric Co ranks better than 62.38% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Foster Electric Co's annualized net income for the quarter that ended in Mar. 2026 was 円4,662 Mil. Foster Electric Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円64,908 Mil. Therefore, Foster Electric Co's annualized ROE % for the quarter that ended in Mar. 2026 was 7.18%.

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

TSE:6794' s ROE % Range Over the Past 10 Years
Min: -14.35   Med: 2.34   Max: 7.79
Current: 7.79

During the past 13 years, Foster Electric Co's highest ROE % was 7.79%. The lowest was -14.35%. And the median was 2.34%.

TSE:6794's ROE % is ranked better than
62.38% of 2427 companies
in the Hardware industry
Industry Median: 4.69 vs TSE:6794: 7.79

Foster Electric Co  (TSE:6794) 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
=4662/64908
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(4662 / 136512)*(136512 / 109431)*(109431 / 64908)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.42 %*1.2475*1.6859
=ROA %*Equity Multiplier
=4.27 %*1.6859
=7.18 %

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
=4662/64908
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (4662 / 8278) * (8278 / 6684) * (6684 / 136512) * (136512 / 109431) * (109431 / 64908)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5632 * 1.2385 * 4.9 % * 1.2475 * 1.6859
=7.18 %

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.


Foster Electric Co ROE % Related Terms


Foster Electric Co ROE % Historical Data

* Premium members only.

The historical data trend for Foster Electric 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.

Foster Electric Co ROE % Chart

Foster Electric Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -14.35 1.73 4.22 6.57 7.70

Foster Electric 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 4.15 8.06 5.13 8.52 7.18

TSE:6794 vs AAPL: ROE % Comparison

For the Consumer Electronics subindustry, Foster Electric 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.


Foster Electric Co ROE % vs Hardware Industry

For the Hardware industry and Technology sector, Foster Electric Co's ROE % distribution charts can be found below:

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


TSE:6794
68GF Score
Foster Electric Co Ltd TSE:6794
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Foster Electric Co ROE % Calculation

Foster Electric Co'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 )
=4951/( (60870+67705)/ 2 )
=4951/64287.5
=7.70 %

Foster Electric 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 )
=4662/( (62111+67705)/ 2 )
=4662/64908
=7.18 %

* 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 7.18% mean?
Foster Electric Co (TSE:6794) has a ROE % of 7.18% 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 Foster Electric Co and its competitors. This is 207% above median its historical median of 2.34. According to the industry distribution chart, Foster Electric Co ranks #913 out of 2427 companies in the Hardware industry, placing it in the top 37.6%.
Is Foster Electric Co's ROE % too high?
Foster Electric Co's current ROE % of 7.18% is 207% above median its 10-year median of 2.34. The Hardware industry median ROE % is 4.69. Foster Electric Co's value of 7.18% is 53.1% above this industry median. Based on the distribution chart, Foster Electric Co ranks #913 out of 2427 companies in the Hardware industry, which is above the industry midpoint. Overall, Foster Electric Co has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Foster Electric Co's ROE % compare to AAPL?
According to the Hardware industry distribution chart, Foster Electric Co ranks #913 out of 2427 companies for ROE %. This puts Foster Electric Co in the upper half of its industry. The industry median ROE % is 4.69. Foster Electric Co's value of 7.18% is 53.1% above this benchmark. While the company's 10-year median is 2.34 vs. the industry median of 4.69, Foster Electric 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 Hardware company?
The median ROE % among Hardware companies is 4.69, based on 2,427 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. Foster Electric Co's current ROE % of 7.18% is 53.1% 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 Foster Electric Co and its competitors. For the Hardware industry, the median ROE % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Foster Electric Co's current ROE % is 7.18%, which is 207% above median its own 10-year median of 2.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Foster Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Foster Electric Co (TSE:6794) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,588.96, compared to a current price of 円2,833.00 — trading 78.3% above its estimated fair value. The current ROE % is 7.18%, which is 207% above median its 10-year median of 2.34 and 53.1% above the Hardware industry median of 4.69. Foster Electric Co's overall GF Score™ is 68/100 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 Foster Electric Co (TSE:6794), the current ROE % is 7.18% 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 Foster Electric Co (TSE:6794) Overvalued in 2026?

Based on GuruFocus' analysis, Foster Electric Co stock appears to be overvalued. The current stock price of 円2,833.00 is trading 78.3% above its estimated GF Value™ of 円1,588.96. GuruFocus considers Foster Electric Co to be Significantly Overvalued.

Key valuation signals for TSE:6794:

  • ROE %: 7.18% (207% above median its 10-year median of 2.34)
  • GF Value™: 円1,588.96 vs. price of 円2,833.00 (78.3% above fair value)
  • GF Score™: 68/100 with 1 warning sign
  • Industry Position: 53.1% above the Hardware median (#913 of 2427)

No single metric tells the full story. See the TSE:6794 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Foster Electric Co Business Description

Address 1-1-109, Tsutsujigaoka, Akishima City, Tokyo, JPN, 196-8550
Foster Electric Co Ltd is a Japan-based company that conducts operation through four segments. The information and communication components and products segment produces and sells headsets and small speakers for mobile phones and commercial microphones, and this segment contributes around half of total revenue. The automotive components and products segment produces car speakers and car speaker systems. The acoustic components and products segment offers speakers and speaker systems for audio devices and TVs, amplifier built-in speakers, headphones, and others. The other segment offers Fostex brand products, micro acoustic components, and logistics services. The company has manufacturing bases in various countries, such as China, Vietnam, South Korea, Indonesia, and elsewhere.
68GF Score

Get the complete analysis for TSE:6794

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

円2,833.00
Price
円1,588.96
GF Value