The historical rank and industry rank for Japan Excellent's ROE % or its related term are showing as below:
TSE:8987'
s ROE % Range Over the Past 10 Years
Min: 4.15 Med: 5.09 Max: 6.73
Current: 5.99
During the past 13 years, Japan Excellent's highest ROE % was 6.73%. The lowest was 4.15%. And the median was 5.09%.
TSE:8987's ROE % is ranked worse than 51.86% of 939
companies
in the REITs industry
Industry Median: 6.13
vs TSE:8987: 5.99
Japan Excellent (TSE:8987) 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.
Japan Excellent ROE % Related Terms
Japan Excellent ROE % Historical Data
* Premium members only.
The historical data trend for Japan Excellent'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 REIT - Office subindustry, Japan Excellent'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.
Japan Excellent ROE % vs REITs Industry
For the REITs industry and Real Estate sector, Japan Excellent's ROE % distribution charts can be found below:
* The bar in red indicates where Japan Excellent'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.
Japan Excellent (TSE:8987) has a ROE % of 5.96% 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 Japan Excellent and its competitors. This is 17% above median its historical median of 5.09. Over the past decade, Japan Excellent's ROE % has ranged from 4.15 to 6.73. According to the industry distribution chart, Japan Excellent ranks #487 out of 939 companies in the REITs industry, placing it in the top 51.9%.
Is Japan Excellent's ROE % too high?
Japan Excellent's current ROE % of 5.96% is 17% above median its 10-year median of 5.09. Over the past 10 years, this metric has ranged from a low of 4.15 to a high of 6.73. The REITs industry median ROE % is 6.13. Japan Excellent's value of 5.96% is 2.8% below this industry median. Based on the distribution chart, Japan Excellent ranks #487 out of 939 companies in the REITs industry, which is below the industry midpoint. Overall, Japan Excellent has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Japan Excellent's ROE % compare to BXP and ARE?
According to the REITs industry distribution chart, Japan Excellent ranks #487 out of 939 companies for ROE %. This places Japan Excellent in the lower half of its industry. The industry median ROE % is 6.13. Japan Excellent's value of 5.96% is 2.8% below this benchmark. Historically, Japan Excellent's own ROE % has ranged from 4.15 to 6.73 over the past decade. While the company's 10-year median is 5.09 vs. the industry median of 6.13, Japan Excellent 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 REITs company?
The median ROE % among REITs companies is 6.13, based on 939 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. Japan Excellent's current ROE % of 5.96% is 2.8% 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 Japan Excellent and its competitors. For the REITs industry, the median ROE % is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Excellent's current ROE % is 5.96%, which is 17% above median its own 10-year median of 5.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Excellent stock overvalued right now?
Based on GuruFocus' analysis, Japan Excellent (TSE:8987) is currently considered Fairly Valued. The stock's GF Value™ is 円128,665.08, compared to a current price of 円140,300.00 — trading 9% above its estimated fair value. The current ROE % is 5.96%, which is 17% above median its 10-year median of 5.09 and 2.8% below the REITs industry median of 6.13. Japan Excellent's overall GF Score™ is 68/100 with 9 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 Japan Excellent (TSE:8987), the current ROE % is 5.96% 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 Japan Excellent (TSE:8987) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Excellent stock appears to be overvalued.
The current stock price of 円140,300.00 is trading 9% above its estimated GF Value™ of 円128,665.08.
GuruFocus considers Japan Excellent to be Fairly Valued.
Key valuation signals for TSE:8987:
ROE %: 5.96% (17% above median its 10-year median of 5.09)
GF Value™: 円128,665.08 vs. price of 円140,300.00 (9% above fair value)
Industry Position: 2.8% below the REITs median (#487 of 939)
No single metric tells the full story. See the TSE:8987 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Excellent Inc is a real estate investment trust. It mainly invests in office buildings located in major metropolitan areas and pursues to create a portfolio that produces stable growth of income by acquiring properties. The company's portfolio of assets is managed by Japan Excellent Asset Management Co., Ltd.
68GF Score
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