GMO Financial HoldingsTSE:7177 +0.51%72 ROE % is 11.69% as of Dec. 2025, which is 41% below its 10-year median of 19.85. GuruFocus rates TSE:7177 with a GF Score™ of 72/100 and a GF Value™ of 円699.08 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 794 Capital Markets companies, GMO Financial Holdings ranks better than 85.39% on this metric.
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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) 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 Capital Markets subindustry, GMO Financial Holdings'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.
GMO Financial Holdings ROE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, GMO Financial Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where GMO Financial Holdings'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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
GMO Financial Holdings (TSE:7177) has a ROE % of 11.69% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on GMO Financial Holdings and its competitors. This is 41% below median its historical median of 19.85. Over the past decade, GMO Financial Holdings' ROE % has ranged from 3.02 to 29.34. According to the industry distribution chart, GMO Financial Holdings ranks #116 out of 794 companies in the Capital Markets industry, placing it in the top 14.6%.
Is GMO Financial Holdings' ROE % too high?
GMO Financial Holdings' current ROE % of 11.69% is 41% below median its 10-year median of 19.85. Over the past 10 years, this metric has ranged from a low of 3.02 to a high of 29.34. The Capital Markets industry median ROE % is 6.01. GMO Financial Holdings' value of 11.69% is 94.7% above this industry median. Based on the distribution chart, GMO Financial Holdings ranks #116 out of 794 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, GMO Financial Holdings has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GMO Financial Holdings' ROE % compare to MS and GS?
According to the Capital Markets industry distribution chart, GMO Financial Holdings ranks #116 out of 794 companies for ROE %. This places GMO Financial Holdings in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 6.01. GMO Financial Holdings' value of 11.69% is 94.7% above this benchmark. Historically, GMO Financial Holdings' own ROE % has ranged from 3.02 to 29.34 over the past decade. While the company's 10-year median is 19.85 vs. the industry median of 6.01, GMO Financial Holdings 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 Capital Markets company?
The median ROE % among Capital Markets companies is 6.01, based on 794 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. GMO Financial Holdings's current ROE % of 11.69% is 94.7% 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 GMO Financial Holdings and its competitors. For the Capital Markets industry, the median ROE % is 6.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GMO Financial Holdings's current ROE % is 11.69%, which is 41% below median its own 10-year median of 19.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GMO Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, GMO Financial Holdings (TSE:7177) is currently considered Significantly Overvalued. The stock's GF Value™ is 円699.08, compared to a current price of 円992.00 — trading 41.9% above its estimated fair value. The current ROE % is 11.69%, which is 41% below median its 10-year median of 19.85 and 94.7% above the Capital Markets industry median of 6.01. GMO Financial Holdings' overall GF Score™ is 72/100 with 5 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 GMO Financial Holdings (TSE:7177), the current ROE % is 11.69% as of Dec. 2025. 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 GMO Financial Holdings (TSE:7177) Overvalued in 2026?
Based on GuruFocus' analysis, GMO Financial Holdings stock appears to be overvalued.
The current stock price of 円992.00 is trading 41.9% above its estimated GF Value™ of 円699.08.
GuruFocus considers GMO Financial Holdings to be Significantly Overvalued.
Key valuation signals for TSE:7177:
ROE %: 11.69% (41% below median its 10-year median of 19.85)
GF Value™: 円699.08 vs. price of 円992.00 (41.9% above fair value)
Industry Position: 94.7% above the Capital Markets median (#116 of 794)
No single metric tells the full story. See the TSE:7177 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GMO Financial Holdings Inc is a Japan-based holding company that is principally engaged in providing financial product trading services in Japan and overseas markets and operates under two segments-securities and FX business and Cryptocurrency business. The company operates through various subsidiaries, such as GMO Click Securities and FX Prime from GMO Corp. in Japan; and GMO-Z.com Forex HK Limited, GMO-Z.com Bullion HK Limited, and GMO-Z.com Trade UK Limited in Hong Kong and the United Kingdom. Through the above subsidiaries, the company is involved in activities including foreign exchange trading, bullion trading, CFD trading, and others.
72GF Score
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