Akebono Brake Industry CoTSE:7238 +2.80%45 ROE % is 4.91% as of Mar. 2026, which is 88% above its 10-year median of 2.61. GuruFocus rates TSE:7238 with a GF Score™ of 45/100 and a GF Value™ of 円61.80 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,306 Vehicles & Parts companies, Akebono Brake Industry Co ranks worse than 62.1% on this metric.
The historical rank and industry rank for Akebono Brake Industry Co's ROE % or its related term are showing as below:
TSE:7238'
s ROE % Range Over the Past 10 Years
Min: -121 Med: 2.61 Max: 96.64
Current: 3.8
During the past 13 years, Akebono Brake Industry Co's highest ROE % was 96.64%. The lowest was -121.00%. And the median was 2.61%.
TSE:7238's ROE % is ranked worse than 62.1% of 1306
companies
in the Vehicles & Parts industry
Industry Median: 6.62
vs TSE:7238: 3.80
Akebono Brake Industry Co (TSE:7238) 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 (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (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 Auto Parts subindustry, Akebono Brake Industry 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.
Akebono Brake Industry Co ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Akebono Brake Industry Co's ROE % distribution charts can be found below:
* The bar in red indicates where Akebono Brake Industry 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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Akebono Brake Industry Co (TSE:7238) has a ROE % of 4.91% 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 Akebono Brake Industry Co and its competitors. This is 88% above median its historical median of 2.61. According to the industry distribution chart, Akebono Brake Industry Co ranks #811 out of 1306 companies in the Vehicles & Parts industry, placing it in the top 62.1%.
Is Akebono Brake Industry Co's ROE % too high?
Akebono Brake Industry Co's current ROE % of 4.91% is 88% above median its 10-year median of 2.61. The Vehicles & Parts industry median ROE % is 6.62. Akebono Brake Industry Co's value of 4.91% is 25.8% below this industry median. Based on the distribution chart, Akebono Brake Industry Co ranks #811 out of 1306 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Akebono Brake Industry Co has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Akebono Brake Industry Co's ROE % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Akebono Brake Industry Co ranks #811 out of 1306 companies for ROE %. This places Akebono Brake Industry Co in the lower half of its industry. The industry median ROE % is 6.62. Akebono Brake Industry Co's value of 4.91% is 25.8% below this benchmark. While the company's 10-year median is 2.61 vs. the industry median of 6.62, Akebono Brake Industry Co 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 a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,306 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. Akebono Brake Industry Co's current ROE % of 4.91% is 25.8% 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 Akebono Brake Industry Co and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Akebono Brake Industry Co's current ROE % is 4.91%, which is 88% above median its own 10-year median of 2.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Akebono Brake Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Akebono Brake Industry Co (TSE:7238) is currently considered Significantly Overvalued. The stock's GF Value™ is 円61.80, compared to a current price of 円110.00 — trading 78% above its estimated fair value. The current ROE % is 4.91%, which is 88% above median its 10-year median of 2.61 and 25.8% below the Vehicles & Parts industry median of 6.62. Akebono Brake Industry Co's overall GF Score™ is 45/100 with 2 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 Akebono Brake Industry Co (TSE:7238), the current ROE % is 4.91% 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 Akebono Brake Industry Co (TSE:7238) Overvalued in 2026?
Based on GuruFocus' analysis, Akebono Brake Industry Co stock appears to be overvalued.
The current stock price of 円110.00 is trading 78% above its estimated GF Value™ of 円61.80.
GuruFocus considers Akebono Brake Industry Co to be Significantly Overvalued.
Key valuation signals for TSE:7238:
ROE %: 4.91% (88% above median its 10-year median of 2.61)
GF Value™: 円61.80 vs. price of 円110.00 (78% above fair value)
Industry Position: 25.8% below the Vehicles & Parts median (#811 of 1306)
No single metric tells the full story. See the TSE:7238 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Akebono Brake Industry Co Ltd engages in the manufacture and sale of brakes and its components. Its brakes are widely used in various applications, such as passenger and commercial vehicles, motorcycles, rail vehicles and industrial machinery. The firm's product portfolio consists of automobile brakes, motorcycle brakes, rolling stock brakes, industrial machinery brakes, sensors, and concept brake systems.
45GF Score
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