Sotetsu HoldingsTSE:9003 +1.08%78 ROE % is 9.04% as of Mar. 2026, which is 22% below its 10-year median of 11.59. GuruFocus rates TSE:9003 with a GF Score™ of 78/100 and a GF Value™ of 円2,916.75 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 557 Conglomerates companies, Sotetsu Holdings ranks better than 78.46% on this metric.
The historical rank and industry rank for Sotetsu Holdings's ROE % or its related term are showing as below:
TSE:9003'
s ROE % Range Over the Past 10 Years
Min: -8.97 Med: 11.59 Max: 14.41
Current: 13.12
During the past 13 years, Sotetsu Holdings's highest ROE % was 14.41%. The lowest was -8.97%. And the median was 11.59%.
TSE:9003's ROE % is ranked better than 78.46% of 557
companies
in the Conglomerates industry
Industry Median: 6.15
vs TSE:9003: 13.12
Sotetsu Holdings (TSE:9003) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (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.
Sotetsu Holdings ROE % Related Terms
Sotetsu Holdings ROE % Historical Data
* Premium members only.
The historical data trend for Sotetsu Holdings'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 Conglomerates subindustry, Sotetsu Holdings'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.
Sotetsu Holdings ROE % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Sotetsu Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Sotetsu Holdings'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 four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Sotetsu Holdings (TSE:9003) has a ROE % of 9.04% 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 Sotetsu Holdings and its competitors. This is 22% below median its historical median of 11.59. According to the industry distribution chart, Sotetsu Holdings ranks #120 out of 557 companies in the Conglomerates industry, placing it in the top 21.5%.
Is Sotetsu Holdings' ROE % too high?
Sotetsu Holdings' current ROE % of 9.04% is 22% below median its 10-year median of 11.59. The Conglomerates industry median ROE % is 6.15. Sotetsu Holdings' value of 9.04% is 47% above this industry median. Based on the distribution chart, Sotetsu Holdings ranks #120 out of 557 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Sotetsu Holdings has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sotetsu Holdings' ROE % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Sotetsu Holdings ranks #120 out of 557 companies for ROE %. This places Sotetsu Holdings in the top 22% of its industry — outperforming the majority of peers. The industry median ROE % is 6.15. Sotetsu Holdings' value of 9.04% is 47% above this benchmark. While the company's 10-year median is 11.59 vs. the industry median of 6.15, Sotetsu Holdings 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 Conglomerates company?
The median ROE % among Conglomerates companies is 6.15, based on 557 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. Sotetsu Holdings's current ROE % of 9.04% is 47% 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 Sotetsu Holdings and its competitors. For the Conglomerates industry, the median ROE % is 6.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sotetsu Holdings's current ROE % is 9.04%, which is 22% below median its own 10-year median of 11.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sotetsu Holdings stock overvalued right now?
Based on GuruFocus' analysis, Sotetsu Holdings (TSE:9003) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,916.75, compared to a current price of 円2,475.00 — trading 15.1% below its estimated fair value. The current ROE % is 9.04%, which is 22% below median its 10-year median of 11.59 and 47% above the Conglomerates industry median of 6.15. Sotetsu Holdings' overall GF Score™ is 78/100 with 3 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 Sotetsu Holdings (TSE:9003), the current ROE % is 9.04% 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 Sotetsu Holdings (TSE:9003) Overvalued in 2026?
Based on GuruFocus' analysis, Sotetsu Holdings stock appears to be undervalued.
The current stock price of 円2,475.00 is trading 15.1% below its estimated GF Value™ of 円2,916.75.
GuruFocus considers Sotetsu Holdings to be Modestly Undervalued.
Key valuation signals for TSE:9003:
ROE %: 9.04% (22% below median its 10-year median of 11.59)
GF Value™: 円2,916.75 vs. price of 円2,475.00 (15.1% below fair value)
Industry Position: 47% above the Conglomerates median (#120 of 557)
No single metric tells the full story. See the TSE:9003 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sotetsu Holdings Inc is a Japanese operator of railway trains and busses. Next to the core business of transporting people and freight, the company operates a real estate business selling and leasing real estate and offers construction works and building maintenance services. Other business ventures include golf courses, hotels, and travel agents.
78GF Score
Get the complete analysis for TSE:9003
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:9003 has been successfully added to your 
