Tokyo Communications GroupTSE:7359 +0.94%69 ROE % is 52.82% as of Dec. 2025, which is 143% above its 10-year median of 21.75. GuruFocus rates TSE:7359 with a GF Score™ of 69/100 and a GF Value™ of 円495.89 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 951 Media - Diversified companies, Tokyo Communications Group ranks better than 94.43% on this metric.
The historical rank and industry rank for Tokyo Communications Group's ROE % or its related term are showing as below:
TSE:7359'
s ROE % Range Over the Past 10 Years
Min: -53.72 Med: 21.75 Max: 35.12
Current: 35.12
During the past 8 years, Tokyo Communications Group's highest ROE % was 35.12%. The lowest was -53.72%. And the median was 21.75%.
TSE:7359's ROE % is ranked better than 94.43% of 951
companies
in the Media - Diversified industry
Industry Median: 2.47
vs TSE:7359: 35.12
Tokyo Communications Group (TSE:7359) 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 (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (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 Advertising Agencies subindustry, Tokyo Communications Group'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.
Tokyo Communications Group ROE % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Tokyo Communications Group's ROE % distribution charts can be found below:
* The bar in red indicates where Tokyo Communications Group'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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Tokyo Communications Group (TSE:7359) has a ROE % of 52.82% 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 Tokyo Communications Group and its competitors. This is 143% above median its historical median of 21.75. According to the industry distribution chart, Tokyo Communications Group ranks #53 out of 951 companies in the Media - Diversified industry, placing it in the top 5.6%.
Is Tokyo Communications Group's ROE % too high?
Tokyo Communications Group's current ROE % of 52.82% is 143% above median its 10-year median of 21.75. The Media - Diversified industry median ROE % is 2.47. Tokyo Communications Group's value of 52.82% is 2038.5% above this industry median. Based on the distribution chart, Tokyo Communications Group ranks #53 out of 951 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Tokyo Communications Group has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tokyo Communications Group's ROE % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Tokyo Communications Group ranks #53 out of 951 companies for ROE %. This places Tokyo Communications Group in the top 6% of its industry — outperforming the majority of peers. The industry median ROE % is 2.47. Tokyo Communications Group's value of 52.82% is 2038.5% above this benchmark. While the company's 10-year median is 21.75 vs. the industry median of 2.47, Tokyo Communications Group 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 Media - Diversified company?
The median ROE % among Media - Diversified companies is 2.47, based on 951 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. Tokyo Communications Group's current ROE % of 52.82% is 2038.5% 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 Tokyo Communications Group and its competitors. For the Media - Diversified industry, the median ROE % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokyo Communications Group's current ROE % is 52.82%, which is 143% above median its own 10-year median of 21.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokyo Communications Group stock overvalued right now?
Based on GuruFocus' analysis, Tokyo Communications Group (TSE:7359) is currently considered Significantly Undervalued. The stock's GF Value™ is 円495.89, compared to a current price of 円214.00 — trading 56.8% below its estimated fair value. The current ROE % is 52.82%, which is 143% above median its 10-year median of 21.75 and 2038.5% above the Media - Diversified industry median of 2.47. Tokyo Communications Group's overall GF Score™ is 69/100 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 Tokyo Communications Group (TSE:7359), the current ROE % is 52.82% 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 Tokyo Communications Group (TSE:7359) Overvalued in 2026?
Based on GuruFocus' analysis, Tokyo Communications Group stock appears to be undervalued.
The current stock price of 円214.00 is trading 56.8% below its estimated GF Value™ of 円495.89.
GuruFocus considers Tokyo Communications Group to be Significantly Undervalued.
Key valuation signals for TSE:7359:
ROE %: 52.82% (143% above median its 10-year median of 21.75)
GF Value™: 円495.89 vs. price of 円214.00 (56.8% below fair value)
Industry Position: 2038.5% above the Media - Diversified median (#53 of 951)
No single metric tells the full story. See the TSE:7359 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokyo Communications Group Inc is an IT marketing company engaged in two main areas: the application business and the advertising agency business. In the app segment, the company develops smartphone apps that generate advertising revenue. The advertising agency business focuses on affiliate-based internet advertising. The company operates through two key segments: the Media Business and the Platform Business. The Media Business earns revenue from advertisers through media management, development of free smartphone apps, and ad product sales using ad tech. The Platform Business operates communication services, health tech apps, and messaging apps, following monthly subscription or pay-as-you-go models tailored to user needs and market demands.
69GF Score
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