Sougou Shouken CoTSE:7850 +1.88%67 ROE % is 39.93% as of Jan. 2026, which is 377% above its 10-year median of 8.37. GuruFocus rates TSE:7850 with a GF Score™ of 67/100 and a GF Value™ of 円886.84 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,058 Business Services companies, Sougou Shouken Co ranks worse than 58.03% on this metric.
The historical rank and industry rank for Sougou Shouken Co's ROE % or its related term are showing as below:
TSE:7850'
s ROE % Range Over the Past 10 Years
Min: -7.77 Med: 8.37 Max: 11.5
Current: 6.16
During the past 13 years, Sougou Shouken Co's highest ROE % was 11.50%. The lowest was -7.77%. And the median was 8.37%.
TSE:7850's ROE % is ranked worse than 58.03% of 1058
companies
in the Business Services industry
Industry Median: 8.095
vs TSE:7850: 6.16
Sougou Shouken Co (TSE:7850) 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 (Jan. 2026) net income data. The Revenue data used here is two times the semi-annual (Jan. 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.
Sougou Shouken Co ROE % Related Terms
Sougou Shouken Co ROE % Historical Data
* Premium members only.
The historical data trend for Sougou Shouken 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 Specialty Business Services subindustry, Sougou Shouken 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.
Sougou Shouken Co ROE % vs Business Services Industry
For the Business Services industry and Industrials sector, Sougou Shouken Co's ROE % distribution charts can be found below:
* The bar in red indicates where Sougou Shouken 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 (Jan. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Sougou Shouken Co (TSE:7850) has a ROE % of 39.93% as of Jan. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sougou Shouken Co and its competitors. This is 377% above median its historical median of 8.37. According to the industry distribution chart, Sougou Shouken Co ranks #614 out of 1058 companies in the Business Services industry, placing it in the top 58%.
Is Sougou Shouken Co's ROE % too high?
Sougou Shouken Co's current ROE % of 39.93% is 377% above median its 10-year median of 8.37. The Business Services industry median ROE % is 8.10. Sougou Shouken Co's value of 39.93% is 393.3% above this industry median. Based on the distribution chart, Sougou Shouken Co ranks #614 out of 1058 companies in the Business Services industry, which is below the industry midpoint. Overall, Sougou Shouken Co has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sougou Shouken Co's ROE % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Sougou Shouken Co ranks #614 out of 1058 companies for ROE %. This places Sougou Shouken Co in the lower half of its industry. The industry median ROE % is 8.10. Sougou Shouken Co's value of 39.93% is 393.3% above this benchmark. While the company's 10-year median is 8.37 vs. the industry median of 8.10, Sougou Shouken 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 Business Services company?
The median ROE % among Business Services companies is 8.10, based on 1,058 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. Sougou Shouken Co's current ROE % of 39.93% is 393.3% 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 Sougou Shouken Co and its competitors. For the Business Services industry, the median ROE % is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sougou Shouken Co's current ROE % is 39.93%, which is 377% above median its own 10-year median of 8.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sougou Shouken Co stock overvalued right now?
Based on GuruFocus' analysis, Sougou Shouken Co (TSE:7850) is currently considered Fairly Valued. The stock's GF Value™ is 円886.84, compared to a current price of 円868.00 — trading 2.1% below its estimated fair value. The current ROE % is 39.93%, which is 377% above median its 10-year median of 8.37 and 393.3% above the Business Services industry median of 8.10. Sougou Shouken Co's overall GF Score™ is 67/100 with 1 warning sign 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 Sougou Shouken Co (TSE:7850), the current ROE % is 39.93% as of Jan. 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 Sougou Shouken Co (TSE:7850) Overvalued in 2026?
Based on GuruFocus' analysis, Sougou Shouken Co stock appears to be undervalued.
The current stock price of 円868.00 is trading 2.1% below its estimated GF Value™ of 円886.84.
GuruFocus considers Sougou Shouken Co to be Fairly Valued.
Key valuation signals for TSE:7850:
ROE %: 39.93% (377% above median its 10-year median of 8.37)
GF Value™: 円886.84 vs. price of 円868.00 (2.1% below fair value)
Industry Position: 393.3% above the Business Services median (#614 of 1058)
No single metric tells the full story. See the TSE:7850 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sougou Shouken Co Ltd provides commercial printing services in Japan. It is engaged in planning, design, printing, and processing of leaflets, catalogs, posters, DMs, POPs, and publications. Its services include advertising inserts and flyers, POP advertising, Postures, and brochures, among others. It is also involved in printing new year cards and the production of the exhibition, seminar, and various promotional materials for event planning and sales promotion.
67GF Score
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