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Japan Investment Adviser Co (TSE:7172) 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 four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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 Rental & Leasing Services subindustry, Japan Investment Adviser 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.
Japan Investment Adviser Co ROE % vs Business Services Industry
For the Business Services industry and Industrials sector, Japan Investment Adviser Co's ROE % distribution charts can be found below:
* The bar in red indicates where Japan Investment Adviser 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 four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Japan Investment Adviser Co (TSE:7172) has a ROE % of 0.00% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Japan Investment Adviser Co and its competitors. Over the past decade, Japan Investment Adviser Co's ROE % has ranged from 5.04 to 32.02. According to the industry distribution chart, Japan Investment Adviser Co ranks #261 out of 1058 companies in the Business Services industry, placing it in the top 24.7%.
Is Japan Investment Adviser Co's ROE % too high?
Japan Investment Adviser Co's current ROE % is 0.00%. Over the past 10 years, this metric has ranged from a low of 5.04 to a high of 32.02. Based on the distribution chart, Japan Investment Adviser Co ranks #261 out of 1058 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Investment Adviser Co has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Investment Adviser Co's ROE % compare to URI and SUNB?
According to the Business Services industry distribution chart, Japan Investment Adviser Co ranks #261 out of 1058 companies for ROE %. This places Japan Investment Adviser Co in the top 25% of its industry — outperforming the majority of peers. The industry median ROE % is 8.49. Historically, Japan Investment Adviser Co's own ROE % has ranged from 5.04 to 32.02 over the past decade. 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 8.49, 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. 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 Japan Investment Adviser Co and its competitors. For the Business Services industry, the median ROE % is 8.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Investment Adviser Co's current ROE % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Investment Adviser Co stock overvalued right now?
Based on GuruFocus' analysis, Japan Investment Adviser Co (TSE:7172) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,855.05, compared to a current price of 円2,093.00 — trading 12.8% above its estimated fair value. The current ROE % is 0.00%. Japan Investment Adviser Co's overall GF Score™ is 88/100 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 Japan Investment Adviser Co (TSE:7172), the current ROE % is 0.00% as of Jun. 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 Japan Investment Adviser Co (TSE:7172) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Investment Adviser Co stock appears to be overvalued.
The current stock price of 円2,093.00 is trading 12.8% above its estimated GF Value™ of 円1,855.05.
GuruFocus considers Japan Investment Adviser Co to be Modestly Overvalued.
Key valuation signals for TSE:7172:
ROE %: 0.00%
GF Value™: 円1,855.05 vs. price of 円2,093.00 (12.8% above fair value)
No single metric tells the full story. See the TSE:7172 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Investment Adviser Co Ltd is a financial solution provider. It provides financial solution services through its operating lease and other financial businesses.
88GF Score
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