NaitoTSE:7624 -0.72%67 ROE % is 2.06% as of Feb. 2026, which is 41% below its 10-year median of 3.50. GuruFocus rates TSE:7624 with a GF Score™ of 67/100 and a GF Value™ of 円138.28 (Fairly Valued). The stock has 5 warning signs investors should review. Among 155 Industrial Distribution companies, Naito ranks worse than 76.77% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Naito's annualized net income for the quarter that ended in Feb. 2026 was 円268 Mil. Naito's average Total Stockholders Equity over the quarter that ended in Feb. 2026 was 円12,995 Mil. Therefore, Naito's annualized ROE % for the quarter that ended in Feb. 2026 was 2.06%.
The historical rank and industry rank for Naito's ROE % or its related term are showing as below:
TSE:7624'
s ROE % Range Over the Past 10 Years
Min: 2.18 Med: 3.5 Max: 7.36
Current: 2.19
During the past 13 years, Naito's highest ROE % was 7.36%. The lowest was 2.18%. And the median was 3.50%.
TSE:7624's ROE % is ranked worse than 76.77% of 155
companies
in the Industrial Distribution industry
Industry Median: 7.21
vs TSE:7624: 2.19
Naito (TSE:7624) 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 (Feb. 2026) net income data. The Revenue data used here is two times the semi-annual (Feb. 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.
Naito ROE % Related Terms
Naito ROE % Historical Data
* Premium members only.
The historical data trend for Naito'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 Industrial Distribution subindustry, Naito'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.
Naito ROE % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Naito's ROE % distribution charts can be found below:
* The bar in red indicates where Naito'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 (Feb. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Naito (TSE:7624) has a ROE % of 2.06% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Naito and its competitors. This is 41% below median its historical median of 3.50. Over the past decade, Naito's ROE % has ranged from 2.18 to 7.36. According to the industry distribution chart, Naito ranks #119 out of 155 companies in the Industrial Distribution industry, placing it in the top 76.8%.
Is Naito's ROE % too high?
Naito's current ROE % of 2.06% is 41% below median its 10-year median of 3.50. Over the past 10 years, this metric has ranged from a low of 2.18 to a high of 7.36. The Industrial Distribution industry median ROE % is 7.21. Naito's value of 2.06% is 71.4% below this industry median. Based on the distribution chart, Naito ranks #119 out of 155 companies in the Industrial Distribution industry, which is in the bottom quartile relative to peers. Overall, Naito has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Naito's ROE % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Naito ranks #119 out of 155 companies for ROE %. This places Naito in the lower half of its industry. The industry median ROE % is 7.21. Naito's value of 2.06% is 71.4% below this benchmark. Historically, Naito's own ROE % has ranged from 2.18 to 7.36 over the past decade. While the company's 10-year median is 3.50 vs. the industry median of 7.21, Naito 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 an Industrial Distribution company?
The median ROE % among Industrial Distribution companies is 7.21, based on 155 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. Naito's current ROE % of 2.06% is 71.4% 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 Naito and its competitors. For the Industrial Distribution industry, the median ROE % is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Naito's current ROE % is 2.06%, which is 41% below median its own 10-year median of 3.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Naito stock overvalued right now?
Based on GuruFocus' analysis, Naito (TSE:7624) is currently considered Fairly Valued. The stock's GF Value™ is 円138.28, compared to a current price of 円138.00 — trading 0.2% below its estimated fair value. The current ROE % is 2.06%, which is 41% below median its 10-year median of 3.50 and 71.4% below the Industrial Distribution industry median of 7.21. Naito's overall GF Score™ is 67/100 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 Naito (TSE:7624), the current ROE % is 2.06% as of Feb. 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 Naito (TSE:7624) Overvalued in 2026?
Based on GuruFocus' analysis, Naito stock appears to be undervalued.
The current stock price of 円138.00 is trading 0.2% below its estimated GF Value™ of 円138.28.
GuruFocus considers Naito to be Fairly Valued.
Key valuation signals for TSE:7624:
ROE %: 2.06% (41% below median its 10-year median of 3.50)
GF Value™: 円138.28 vs. price of 円138.00 (0.2% below fair value)
Industry Position: 71.4% below the Industrial Distribution median (#119 of 155)
No single metric tells the full story. See the TSE:7624 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Naito & Co Ltd engages in the trading of machine tools. The company sales cutting tools, measurement, industrial equipment and machine tools. Its product offerings include drilling tool, threading tool, milling tool, measuring equipment, compressor, safety equipment, chemical supplies, lifting equipment, environment improvement items, transport equipment, work assistance equipment, among others.
67GF Score
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