Step CoTSE:9795 -0.09%78 ROE % is 12.31% as of Mar. 2026, which is 22% above its 10-year median of 10.05. GuruFocus rates TSE:9795 with a GF Score™ of 78/100 and a GF Value™ of 円2,357.44 (Fairly Valued). Among 260 Education companies, Step Co ranks better than 56.92% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Step Co's annualized net income for the quarter that ended in Mar. 2026 was 円3,394 Mil. Step Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円27,583 Mil. Therefore, Step Co's annualized ROE % for the quarter that ended in Mar. 2026 was 12.31%.
The historical rank and industry rank for Step Co's ROE % or its related term are showing as below:
TSE:9795'
s ROE % Range Over the Past 10 Years
Min: 6.49 Med: 10.05 Max: 11.25
Current: 9.97
During the past 13 years, Step Co's highest ROE % was 11.25%. The lowest was 6.49%. And the median was 10.05%.
TSE:9795's ROE % is ranked better than 56.92% of 260
companies
in the Education industry
Industry Median: 7.3
vs TSE:9795: 9.97
Step Co (TSE:9795) 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 (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.
Step Co ROE % Related Terms
Step Co ROE % Historical Data
* Premium members only.
The historical data trend for Step 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 Education & Training Services subindustry, Step 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.
Step Co ROE % vs Education Industry
For the Education industry and Consumer Defensive sector, Step Co's ROE % distribution charts can be found below:
* The bar in red indicates where Step 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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Step Co (TSE:9795) has a ROE % of 12.31% 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 Step Co and its competitors. This is 22% above median its historical median of 10.05. Over the past decade, Step Co's ROE % has ranged from 6.49 to 11.25. According to the industry distribution chart, Step Co ranks #112 out of 260 companies in the Education industry, placing it in the top 43.1%.
Is Step Co's ROE % too high?
Step Co's current ROE % of 12.31% is 22% above median its 10-year median of 10.05. Over the past 10 years, this metric has ranged from a low of 6.49 to a high of 11.25. The Education industry median ROE % is 7.30. Step Co's value of 12.31% is 68.6% above this industry median. Based on the distribution chart, Step Co ranks #112 out of 260 companies in the Education industry, which is above the industry midpoint. Overall, Step Co has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Step Co's ROE % compare to EDU and TAL?
According to the Education industry distribution chart, Step Co ranks #112 out of 260 companies for ROE %. This puts Step Co in the upper half of its industry. The industry median ROE % is 7.30. Step Co's value of 12.31% is 68.6% above this benchmark. Historically, Step Co's own ROE % has ranged from 6.49 to 11.25 over the past decade. While the company's 10-year median is 10.05 vs. the industry median of 7.30, Step 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 an Education company?
The median ROE % among Education companies is 7.30, based on 260 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. Step Co's current ROE % of 12.31% is 68.6% 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 Step Co and its competitors. For the Education industry, the median ROE % is 7.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Step Co's current ROE % is 12.31%, which is 22% above median its own 10-year median of 10.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Step Co stock overvalued right now?
Based on GuruFocus' analysis, Step Co (TSE:9795) is currently considered Fairly Valued. The stock's GF Value™ is 円2,357.44, compared to a current price of 円2,235.00 — trading 5.2% below its estimated fair value. The current ROE % is 12.31%, which is 22% above median its 10-year median of 10.05 and 68.6% above the Education industry median of 7.30. Step Co's overall GF Score™ is 78/100. 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 Step Co (TSE:9795), the current ROE % is 12.31% 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 Step Co (TSE:9795) Overvalued in 2026?
Based on GuruFocus' analysis, Step Co stock appears to be undervalued.
The current stock price of 円2,235.00 is trading 5.2% below its estimated GF Value™ of 円2,357.44.
GuruFocus considers Step Co to be Fairly Valued.
Key valuation signals for TSE:9795:
ROE %: 12.31% (22% above median its 10-year median of 10.05)
GF Value™: 円2,357.44 vs. price of 円2,235.00 (5.2% below fair value)
Industry Position: 68.6% above the Education median (#112 of 260)
No single metric tells the full story. See the TSE:9795 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Step Co Ltd is a Japan-based company engaged in the operation of private preparatory schools. The company operates cram schools and after-school care facilities, and produces and edits educational materials, as well as prints and binds books. The company is engaged in providing high school entrance exam preparation courses, Teaching Materials Research Division produces manuscripts and original plates for teaching materials, academic programs, physical education, and shogi (Japanese chess), and other activities.
78GF Score
Get the complete analysis for TSE:9795
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:9795 has been successfully added to your 
