Hotel Newgrand Co (TSE:9720) ROE %: -8.96% (As of Nov. 2025)


TSE:9720 Hotel Newgrand Co Ltd TSE:9720
59 GF Score
Price 円5,150.00
GF Value 円6,856.00
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Hotel Newgrand Co ROE %?

Hotel Newgrand Co TSE:9720 59 ROE % is -8.96% as of Nov. 2025. GuruFocus rates TSE:9720 with a GF Score™ of 59/100 and a GF Value™ of 円6,856.00 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 825 Travel & Leisure companies, Hotel Newgrand Co ranks worse than 50.42% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hotel Newgrand Co's annualized net income for the quarter that ended in Nov. 2025 was 円-340 Mil. Hotel Newgrand Co's average Total Stockholders Equity over the quarter that ended in Nov. 2025 was 円3,800 Mil. Therefore, Hotel Newgrand Co's annualized ROE % for the quarter that ended in Nov. 2025 was -8.96%.

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

TSE:9720' s ROE % Range Over the Past 10 Years
Min: -82.82   Med: -1.36   Max: 52.11
Current: 5.43

During the past 13 years, Hotel Newgrand Co's highest ROE % was 52.11%. The lowest was -82.82%. And the median was -1.36%.

TSE:9720's ROE % is ranked worse than
50.42% of 825 companies
in the Travel & Leisure industry
Industry Median: 5.46 vs TSE:9720: 5.43

Hotel Newgrand Co  (TSE:9720) 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: Nov. 2025 )
=Net Income/Total Stockholders Equity
=-340.466/3800.145
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-340.466 / 6477.556)*(6477.556 / 8755.4955)*(8755.4955 / 3800.145)
=Net Margin %*Asset Turnover*Equity Multiplier
=-5.26 %*0.7398*2.304
=ROA %*Equity Multiplier
=-3.89 %*2.304
=-8.96 %

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: Nov. 2025 )
=Net Income/Total Stockholders Equity
=-340.466/3800.145
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-340.466 / -223.372) * (-223.372 / -32.648) * (-32.648 / 6477.556) * (6477.556 / 8755.4955) * (8755.4955 / 3800.145)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.5242 * 6.8418 * -0.5 % * 0.7398 * 2.304
=-8.96 %

Note: The net income data used here is two times the semi-annual (Nov. 2025) net income data. The Revenue data used here is two times the semi-annual (Nov. 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.


Hotel Newgrand Co ROE % Related Terms


Hotel Newgrand Co ROE % Historical Data

* Premium members only.

The historical data trend for Hotel Newgrand 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.

Hotel Newgrand Co ROE % Chart

Hotel Newgrand Co Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 52.11 -11.55 12.89 8.94 5.55

Hotel Newgrand Co Semi-Annual Data
May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24 May25 Nov25
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 18.07 22.59 -4.75 20.05 -8.96

TSE:9720 vs MAR, HLT, H: ROE % Comparison

For the Lodging subindustry, Hotel Newgrand 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.


Hotel Newgrand Co ROE % vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Hotel Newgrand Co's ROE % distribution charts can be found below:

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


TSE:9720
59GF Score
Hotel Newgrand Co Ltd TSE:9720
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hotel Newgrand Co ROE % Calculation

Hotel Newgrand Co's annualized ROE % for the fiscal year that ended in Nov. 2025 is calculated as

ROE %=Net Income (A: Nov. 2025 )/( (Total Stockholders Equity (A: Nov. 2024 )+Total Stockholders Equity (A: Nov. 2025 ))/ count )
=201.371/( (3535.152+3721.877)/ 2 )
=201.371/3628.5145
=5.55 %

Hotel Newgrand Co's annualized ROE % for the quarter that ended in Nov. 2025 is calculated as

ROE %=Net Income (Q: Nov. 2025 )/( (Total Stockholders Equity (Q: May. 2025 )+Total Stockholders Equity (Q: Nov. 2025 ))/ count )
=-340.466/( (3878.413+3721.877)/ 2 )
=-340.466/3800.145
=-8.96 %

* 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 (Nov. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -8.96% mean?
Hotel Newgrand Co (TSE:9720) has a ROE % of -8.96% as of Nov. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Hotel Newgrand Co and its competitors. According to the industry distribution chart, Hotel Newgrand Co ranks #416 out of 825 companies in the Travel & Leisure industry, placing it in the top 50.4%.
Is Hotel Newgrand Co's ROE % too high?
Hotel Newgrand Co's current ROE % is -8.96%. Based on the distribution chart, Hotel Newgrand Co ranks #416 out of 825 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Hotel Newgrand Co has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hotel Newgrand Co's ROE % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Hotel Newgrand Co ranks #416 out of 825 companies for ROE %. This places Hotel Newgrand Co in the lower half of its industry. The industry median ROE % is 5.46. 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 Travel & Leisure company?
The median ROE % among Travel & Leisure companies is 5.46, based on 825 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. 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 Hotel Newgrand Co and its competitors. For the Travel & Leisure industry, the median ROE % is 5.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hotel Newgrand Co's current ROE % is -8.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hotel Newgrand Co stock overvalued right now?
Based on GuruFocus' analysis, Hotel Newgrand Co (TSE:9720) is currently considered Modestly Undervalued. The stock's GF Value™ is 円6,856.00, compared to a current price of 円5,150.00 — trading 24.9% below its estimated fair value. The current ROE % is -8.96%. Hotel Newgrand Co's overall GF Score™ is 59/100 with 2 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 Hotel Newgrand Co (TSE:9720), the current ROE % is -8.96% as of Nov. 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 Hotel Newgrand Co (TSE:9720) Overvalued in 2026?

Based on GuruFocus' analysis, Hotel Newgrand Co stock appears to be undervalued. The current stock price of 円5,150.00 is trading 24.9% below its estimated GF Value™ of 円6,856.00. GuruFocus considers Hotel Newgrand Co to be Modestly Undervalued.

Key valuation signals for TSE:9720:

  • ROE %: -8.96%
  • GF Value™: 円6,856.00 vs. price of 円5,150.00 (24.9% below fair value)
  • GF Score™: 59/100 with 2 warning signs

No single metric tells the full story. See the TSE:9720 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hotel Newgrand Co Business Description

Address 10, Yamashita-cho, Naka-ku, Kanagawa, Yokohama-shi, JPN, 231-8520
Hotel Newgrand Co Ltd is engaged in lodging operations. The company operates restaurants, hotels and food and beverage facilities, and real estate rentals with different accommodation plans and rooms.
59GF Score

Get the complete analysis for TSE:9720

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

円5,150.00
Price
円6,856.00
GF Value