The historical rank and industry rank for ARAYA INDUSTRIAL Co's ROE % or its related term are showing as below:
TSE:7305'
s ROE % Range Over the Past 10 Years
Min: 3.01 Med: 6.3 Max: 10.12
Current: 4.68
During the past 13 years, ARAYA INDUSTRIAL Co's highest ROE % was 10.12%. The lowest was 3.01%. And the median was 6.30%.
TSE:7305's ROE % is ranked better than 55.81% of 620
companies
in the Steel industry
Industry Median: 3.68
vs TSE:7305: 4.68
ARAYA INDUSTRIAL Co (TSE:7305) 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.
ARAYA INDUSTRIAL Co ROE % Related Terms
ARAYA INDUSTRIAL Co ROE % Historical Data
* Premium members only.
The historical data trend for ARAYA INDUSTRIAL 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.
For the Steel subindustry, ARAYA INDUSTRIAL 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.
ARAYA INDUSTRIAL Co ROE % vs Steel Industry
For the Steel industry and Basic Materials sector, ARAYA INDUSTRIAL Co's ROE % distribution charts can be found below:
* The bar in red indicates where ARAYA INDUSTRIAL 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 two times the semi-annual (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
ARAYA INDUSTRIAL Co (TSE:7305) has a ROE % of 5.62% 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 ARAYA INDUSTRIAL Co and its competitors. This is 11% below median its historical median of 6.30. Over the past decade, ARAYA INDUSTRIAL Co's ROE % has ranged from 3.01 to 10.12. According to the industry distribution chart, ARAYA INDUSTRIAL Co ranks #274 out of 620 companies in the Steel industry, placing it in the top 44.2%.
Is ARAYA INDUSTRIAL Co's ROE % too high?
ARAYA INDUSTRIAL Co's current ROE % of 5.62% is 11% below median its 10-year median of 6.30. Over the past 10 years, this metric has ranged from a low of 3.01 to a high of 10.12. The Steel industry median ROE % is 3.68. ARAYA INDUSTRIAL Co's value of 5.62% is 52.7% above this industry median. Based on the distribution chart, ARAYA INDUSTRIAL Co ranks #274 out of 620 companies in the Steel industry, which is above the industry midpoint. Overall, ARAYA INDUSTRIAL Co has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ARAYA INDUSTRIAL Co's ROE % compare to NUE and STLD?
According to the Steel industry distribution chart, ARAYA INDUSTRIAL Co ranks #274 out of 620 companies for ROE %. This puts ARAYA INDUSTRIAL Co in the upper half of its industry. The industry median ROE % is 3.68. ARAYA INDUSTRIAL Co's value of 5.62% is 52.7% above this benchmark. Historically, ARAYA INDUSTRIAL Co's own ROE % has ranged from 3.01 to 10.12 over the past decade. While the company's 10-year median is 6.30 vs. the industry median of 3.68, ARAYA INDUSTRIAL 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 Steel company?
The median ROE % among Steel companies is 3.68, based on 620 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. ARAYA INDUSTRIAL Co's current ROE % of 5.62% is 52.7% 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 ARAYA INDUSTRIAL Co and its competitors. For the Steel industry, the median ROE % is 3.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARAYA INDUSTRIAL Co's current ROE % is 5.62%, which is 11% below median its own 10-year median of 6.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARAYA INDUSTRIAL Co stock overvalued right now?
Based on GuruFocus' analysis, ARAYA INDUSTRIAL Co (TSE:7305) is currently considered Fairly Valued. The stock's GF Value™ is 円2,379.99, compared to a current price of 円2,489.00 — trading 4.6% above its estimated fair value. The current ROE % is 5.62%, which is 11% below median its 10-year median of 6.30 and 52.7% above the Steel industry median of 3.68. ARAYA INDUSTRIAL Co's overall GF Score™ is 74/100 with 6 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 ARAYA INDUSTRIAL Co (TSE:7305), the current ROE % is 5.62% 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 ARAYA INDUSTRIAL Co (TSE:7305) Overvalued in 2026?
Based on GuruFocus' analysis, ARAYA INDUSTRIAL Co stock appears to be overvalued.
The current stock price of 円2,489.00 is trading 4.6% above its estimated GF Value™ of 円2,379.99.
GuruFocus considers ARAYA INDUSTRIAL Co to be Fairly Valued.
Key valuation signals for TSE:7305:
ROE %: 5.62% (11% below median its 10-year median of 6.30)
GF Value™: 円2,379.99 vs. price of 円2,489.00 (4.6% above fair value)
Industry Position: 52.7% above the Steel median (#274 of 620)
No single metric tells the full story. See the TSE:7305 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ARAYA INDUSTRIAL Co Ltd is engaged in the manufacturing and selling of high-quality, high-performance iron, stainless steel pipe and others by metal processing technology Roll Forming. Its product offering includes steel pipe, welfare equipment, rim for the bicycle, pipe cutting machine, pipe/sheet metal processing machine and other special purpose machines. The company's products are used in a wide range of fields including automobiles, motorcycles, bicycles, buildings, furniture, industrial machinery, welfare equipment, and logistics equipment.
74GF Score
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