Avantia CoTSE:8904 +0.49%71 ROE % is 2.55% as of Feb. 2026, which is 38% below its 10-year median of 4.11. GuruFocus rates TSE:8904 with a GF Score™ of 71/100 and a GF Value™ of 円859.49 (Fairly Valued). The stock has 7 warning signs investors should review. Among 95 Homebuilding & Construction companies, Avantia Co ranks worse than 63.16% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Avantia Co's annualized net income for the quarter that ended in Feb. 2026 was 円716 Mil. Avantia Co's average Total Stockholders Equity over the quarter that ended in Feb. 2026 was 円28,112 Mil. Therefore, Avantia Co's annualized ROE % for the quarter that ended in Feb. 2026 was 2.55%.
The historical rank and industry rank for Avantia Co's ROE % or its related term are showing as below:
TSE:8904'
s ROE % Range Over the Past 10 Years
Min: 2.13 Med: 4.11 Max: 7.13
Current: 4.77
During the past 13 years, Avantia Co's highest ROE % was 7.13%. The lowest was 2.13%. And the median was 4.11%.
TSE:8904's ROE % is ranked worse than 63.16% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 7.87
vs TSE:8904: 4.77
Avantia Co (TSE:8904) 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.
Avantia Co ROE % Related Terms
Avantia Co ROE % Historical Data
* Premium members only.
The historical data trend for Avantia 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 Residential Construction subindustry, Avantia 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.
Avantia Co ROE % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Avantia Co's ROE % distribution charts can be found below:
* The bar in red indicates where Avantia 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 (Feb. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Avantia Co (TSE:8904) has a ROE % of 2.55% 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 Avantia Co and its competitors. This is 38% below median its historical median of 4.11. Over the past decade, Avantia Co's ROE % has ranged from 2.13 to 7.13. According to the industry distribution chart, Avantia Co ranks #60 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 63.2%.
Is Avantia Co's ROE % too high?
Avantia Co's current ROE % of 2.55% is 38% below median its 10-year median of 4.11. Over the past 10 years, this metric has ranged from a low of 2.13 to a high of 7.13. The Homebuilding & Construction industry median ROE % is 7.87. Avantia Co's value of 2.55% is 67.6% below this industry median. Based on the distribution chart, Avantia Co ranks #60 out of 95 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, Avantia Co has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Avantia Co's ROE % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Avantia Co ranks #60 out of 95 companies for ROE %. This places Avantia Co in the lower half of its industry. The industry median ROE % is 7.87. Avantia Co's value of 2.55% is 67.6% below this benchmark. Historically, Avantia Co's own ROE % has ranged from 2.13 to 7.13 over the past decade. While the company's 10-year median is 4.11 vs. the industry median of 7.87, Avantia Co 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 a Homebuilding & Construction company?
The median ROE % among Homebuilding & Construction companies is 7.87, based on 95 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. Avantia Co's current ROE % of 2.55% is 67.6% 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 Avantia Co and its competitors. For the Homebuilding & Construction industry, the median ROE % is 7.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avantia Co's current ROE % is 2.55%, which is 38% below median its own 10-year median of 4.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avantia Co stock overvalued right now?
Based on GuruFocus' analysis, Avantia Co (TSE:8904) is currently considered Fairly Valued. The stock's GF Value™ is 円859.49, compared to a current price of 円818.00 — trading 4.8% below its estimated fair value. The current ROE % is 2.55%, which is 38% below median its 10-year median of 4.11 and 67.6% below the Homebuilding & Construction industry median of 7.87. Avantia Co's overall GF Score™ is 71/100 with 7 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 Avantia Co (TSE:8904), the current ROE % is 2.55% 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 Avantia Co (TSE:8904) Overvalued in 2026?
Based on GuruFocus' analysis, Avantia Co stock appears to be undervalued.
The current stock price of 円818.00 is trading 4.8% below its estimated GF Value™ of 円859.49.
GuruFocus considers Avantia Co to be Fairly Valued.
Key valuation signals for TSE:8904:
ROE %: 2.55% (38% below median its 10-year median of 4.11)
GF Value™: 円859.49 vs. price of 円818.00 (4.8% below fair value)
Industry Position: 67.6% below the Homebuilding & Construction median (#60 of 95)
No single metric tells the full story. See the TSE:8904 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avantia Co Ltd is engaged in the planning, design and construction, interior coordination, and exterior design of houses and condominium projects in Japan.
71GF Score
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