Kensoh Co (TSE:7939) ROE %: 9.07% (As of Mar. 2026) — 14% Above Median


TSE:7939 Kensoh Co Ltd TSE:7939
74 GF Score
Price 円576.00
GF Value 円579.20
Valuation Fairly Valued
! 4 Warning Signs
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What is Kensoh Co ROE %?

Kensoh Co TSE:7939 +0.17% 74 ROE % is 9.07% as of Mar. 2026, which is 14% above its 10-year median of 7.94. GuruFocus rates TSE:7939 with a GF Score™ of 74/100 and a GF Value™ of 円579.20 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,058 Business Services companies, Kensoh Co ranks worse than 57.28% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Kensoh Co's annualized net income for the quarter that ended in Mar. 2026 was 円301 Mil. Kensoh Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円3,317 Mil. Therefore, Kensoh Co's annualized ROE % for the quarter that ended in Mar. 2026 was 9.07%.

The historical rank and industry rank for Kensoh Co's ROE % or its related term are showing as below:

TSE:7939' s ROE % Range Over the Past 10 Years
Min: 5.46   Med: 7.94   Max: 12.81
Current: 6.27

During the past 13 years, Kensoh Co's highest ROE % was 12.81%. The lowest was 5.46%. And the median was 7.94%.

TSE:7939's ROE % is ranked worse than
57.28% of 1058 companies
in the Business Services industry
Industry Median: 8.095 vs TSE:7939: 6.27

Kensoh Co  (TSE:7939) 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:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=301.05/3317.418
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(301.05 / 6956.028)*(6956.028 / 5395.8645)*(5395.8645 / 3317.418)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.33 %*1.2891*1.6265
=ROA %*Equity Multiplier
=5.58 %*1.6265
=9.07 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=301.05/3317.418
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (301.05 / 397.55) * (397.55 / 341.096) * (341.096 / 6956.028) * (6956.028 / 5395.8645) * (5395.8645 / 3317.418)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7573 * 1.1655 * 4.9 % * 1.2891 * 1.6265
=9.07 %

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.


Kensoh Co ROE % Related Terms


Kensoh Co ROE % Historical Data

* Premium members only.

The historical data trend for Kensoh 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.

Kensoh Co ROE % Chart

Kensoh Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.82 8.67 5.97 5.46 6.22

Kensoh Co Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.91 0.99 10.01 3.46 9.07

TSE:7939 vs CTAS, CPRT, GPN: ROE % Comparison

For the Specialty Business Services subindustry, Kensoh 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.


Kensoh Co ROE % vs Business Services Industry

For the Business Services industry and Industrials sector, Kensoh Co's ROE % distribution charts can be found below:

* The bar in red indicates where Kensoh Co's ROE % falls into.


TSE:7939
74GF Score
Kensoh Co Ltd TSE:7939
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Kensoh Co ROE % Calculation

Kensoh Co's annualized ROE % for the fiscal year that ended in Mar. 2026 is calculated as

ROE %=Net Income (A: Mar. 2026 )/( (Total Stockholders Equity (A: Mar. 2025 )+Total Stockholders Equity (A: Mar. 2026 ))/ count )
=206.85/( (3266.837+3384.99)/ 2 )
=206.85/3325.9135
=6.22 %

Kensoh Co's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=301.05/( (3249.846+3384.99)/ 2 )
=301.05/3317.418
=9.07 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 9.07% mean?
Kensoh Co (TSE:7939) has a ROE % of 9.07% 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 Kensoh Co and its competitors. This is 14% above median its historical median of 7.94. Over the past decade, Kensoh Co's ROE % has ranged from 5.46 to 12.81. According to the industry distribution chart, Kensoh Co ranks #606 out of 1058 companies in the Business Services industry, placing it in the top 57.3%.
Is Kensoh Co's ROE % too high?
Kensoh Co's current ROE % of 9.07% is 14% above median its 10-year median of 7.94. Over the past 10 years, this metric has ranged from a low of 5.46 to a high of 12.81. The Business Services industry median ROE % is 8.10. Kensoh Co's value of 9.07% is 12% above this industry median. Based on the distribution chart, Kensoh Co ranks #606 out of 1058 companies in the Business Services industry, which is below the industry midpoint. Overall, Kensoh 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 Kensoh Co's ROE % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Kensoh Co ranks #606 out of 1058 companies for ROE %. This places Kensoh Co in the lower half of its industry. The industry median ROE % is 8.10. Kensoh Co's value of 9.07% is 12% above this benchmark. Historically, Kensoh Co's own ROE % has ranged from 5.46 to 12.81 over the past decade. While the company's 10-year median is 7.94 vs. the industry median of 8.10, Kensoh 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. Kensoh Co's current ROE % of 9.07% is 12% 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 Kensoh 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. Kensoh Co's current ROE % is 9.07%, which is 14% above median its own 10-year median of 7.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kensoh Co stock overvalued right now?
Based on GuruFocus' analysis, Kensoh Co (TSE:7939) is currently considered Fairly Valued. The stock's GF Value™ is 円579.20, compared to a current price of 円576.00 — trading 0.6% below its estimated fair value. The current ROE % is 9.07%, which is 14% above median its 10-year median of 7.94 and 12% above the Business Services industry median of 8.10. Kensoh Co's overall GF Score™ is 74/100 with 4 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 Kensoh Co (TSE:7939), the current ROE % is 9.07% 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 Kensoh Co (TSE:7939) Overvalued in 2026?

Based on GuruFocus' analysis, Kensoh Co stock appears to be undervalued. The current stock price of 円576.00 is trading 0.6% below its estimated GF Value™ of 円579.20. GuruFocus considers Kensoh Co to be Fairly Valued.

Key valuation signals for TSE:7939:

  • ROE %: 9.07% (14% above median its 10-year median of 7.94)
  • GF Value™: 円579.20 vs. price of 円576.00 (0.6% below fair value)
  • GF Score™: 74/100 with 4 warning signs
  • Industry Position: 12% above the Business Services median (#606 of 1058)

No single metric tells the full story. See the TSE:7939 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kensoh Co Business Description

Address 448 Kamifukagawacho, Asakita Ward, Hiroshima, JPN, 739-1792
Kensoh Co Ltd is a Japanese company engaged in manufacturing and selling metal sign products for corporations. Its products include corporate names, billboards, and nameplates for buildings. The company also manufactures and wholesales machinery to create metal signs.
74GF Score

Get the complete analysis for TSE:7939

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円576.00
Price
円579.20
GF Value