ITOCHUWBO:IOC -0.30%79 ROE % is 12.06% as of Mar. 2026, which is 24% below its 10-year median of 15.77. GuruFocus rates WBO:IOC with a GF Score™ of 79/100 and a GF Value™ of €8.52 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 557 Conglomerates companies, ITOCHU ranks better than 83.84% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ITOCHU's annualized net income for the quarter that ended in Mar. 2026 was €4,252 Mil. ITOCHU's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €35,251 Mil. Therefore, ITOCHU's annualized ROE % for the quarter that ended in Mar. 2026 was 12.06%.
The historical rank and industry rank for ITOCHU's ROE % or its related term are showing as below:
WBO:IOC'
s ROE % Range Over the Past 10 Years
Min: 12.72 Med: 15.77 Max: 21.83
Current: 14.78
During the past 13 years, ITOCHU's highest ROE % was 21.83%. The lowest was 12.72%. And the median was 15.77%.
WBO:IOC's ROE % is ranked better than 83.84% of 557
companies
in the Conglomerates industry
Industry Median: 6.15
vs WBO:IOC: 14.78
ITOCHU (WBO:IOC) 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.
ITOCHU ROE % Related Terms
ITOCHU ROE % Historical Data
* Premium members only.
The historical data trend for ITOCHU'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, ITOCHU'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.
ITOCHU ROE % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, ITOCHU's ROE % distribution charts can be found below:
* The bar in red indicates where ITOCHU'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.
ITOCHU (WBO:IOC) has a ROE % of 12.06% 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 ITOCHU and its competitors. This is 24% below median its historical median of 15.77. Over the past decade, ITOCHU's ROE % has ranged from 12.72 to 21.83. According to the industry distribution chart, ITOCHU ranks #90 out of 557 companies in the Conglomerates industry, placing it in the top 16.2%.
Is ITOCHU's ROE % too high?
ITOCHU's current ROE % of 12.06% is 24% below median its 10-year median of 15.77. Over the past 10 years, this metric has ranged from a low of 12.72 to a high of 21.83. The Conglomerates industry median ROE % is 6.15. ITOCHU's value of 12.06% is 96.1% above this industry median. Based on the distribution chart, ITOCHU ranks #90 out of 557 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, ITOCHU has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ITOCHU's ROE % compare to HON and MMM?
According to the Conglomerates industry distribution chart, ITOCHU ranks #90 out of 557 companies for ROE %. This places ITOCHU in the top 16% of its industry — outperforming the majority of peers. The industry median ROE % is 6.15. ITOCHU's value of 12.06% is 96.1% above this benchmark. Historically, ITOCHU's own ROE % has ranged from 12.72 to 21.83 over the past decade. While the company's 10-year median is 15.77 vs. the industry median of 6.15, ITOCHU 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. ITOCHU's current ROE % of 12.06% is 96.1% 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 ITOCHU 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. ITOCHU's current ROE % is 12.06%, which is 24% below median its own 10-year median of 15.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITOCHU stock overvalued right now?
Based on GuruFocus' analysis, ITOCHU (WBO:IOC) is currently considered Modestly Overvalued. The stock's GF Value™ is €8.52, compared to a current price of €9.96 — trading 16.9% above its estimated fair value. The current ROE % is 12.06%, which is 24% below median its 10-year median of 15.77 and 96.1% above the Conglomerates industry median of 6.15. ITOCHU's overall GF Score™ is 79/100 with 4 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 ITOCHU (WBO:IOC), the current ROE % is 12.06% 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 ITOCHU (WBO:IOC) Overvalued in 2026?
Based on GuruFocus' analysis, ITOCHU stock appears to be overvalued.
The current stock price of €9.96 is trading 16.9% above its estimated GF Value™ of €8.52.
GuruFocus considers ITOCHU to be Modestly Overvalued.
Key valuation signals for WBO:IOC:
ROE %: 12.06% (24% below median its 10-year median of 15.77)
GF Value™: €8.52 vs. price of €9.96 (16.9% above fair value)
Industry Position: 96.1% above the Conglomerates median (#90 of 557)
No single metric tells the full story. See the WBO:IOC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Itochu is a general trading house, or sogo shosha, a conglomerate type unique to Japan. The primary driver for sogo shoshas is trading and intermediation between businesses and leveraging their wide domestic and global information and contact networks to extract value. Itochu has historical roots as a textile trader, but over the years has expanded its portfolio from upstream minerals production, to midstream industrial machinery, food processing, and information and communication technology, and all the way to downstream textiles, convenience stores (Family Mart) and realty. Among the Big Five sogo shoshas, Itochu has the highest exposure to the nonresources businesses, and to the domestic business. It continues to skew its future investments toward the downstream and consumer businesses.
79GF Score
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