Japan TobaccoJAPAF 75 3-Year RORE % is 29.90 as of Mar. 2026. GuruFocus rates JAPAF with a GF Score™ of 75/100 and a GF Value™ of $31.64 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 42 Tobacco Products companies, Japan Tobacco ranks better than 80.95% on this metric.
Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Japan Tobacco's 3-Year RORE % for the quarter that ended in Mar. 2026 was 29.90%.
The industry rank for Japan Tobacco's 3-Year RORE % or its related term are showing as below:
JAPAF's 3-Year RORE % is ranked better than 80.95% of 42
companies
in the Tobacco Products industry
Industry Median: 2.62
vs JAPAF: 29.90
Japan Tobacco (OTCPK:JAPAF) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Japan Tobacco 3-Year RORE % Related Terms
Japan Tobacco 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Japan Tobacco's 3-Year RORE % 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 Tobacco subindustry, Japan Tobacco's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 Tobacco 3-Year RORE % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Japan Tobacco's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Japan Tobacco's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Japan Tobacco (JAPAF) has a 3-Year RORE % of 29.90 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Japan Tobacco and its competitors. According to the industry distribution chart, Japan Tobacco ranks #8 out of 42 companies in the Tobacco Products industry, placing it in the top 19%.
Is Japan Tobacco's 3-Year RORE % too high?
Japan Tobacco's current 3-Year RORE % is 29.90. The Tobacco Products industry median 3-Year RORE % is 2.62. Japan Tobacco's value of 29.90 is 1041.2% above this industry median. Based on the distribution chart, Japan Tobacco ranks #8 out of 42 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Tobacco has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Tobacco's 3-Year RORE % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Japan Tobacco ranks #8 out of 42 companies for 3-Year RORE %. This places Japan Tobacco in the top 19% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 2.62. Japan Tobacco's value of 29.90 is 1041.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Tobacco Products company?
The median 3-Year RORE % among Tobacco Products companies is 2.62, based on 42 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Japan Tobacco's current 3-Year RORE % of 29.90 is 1041.2% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Japan Tobacco and its competitors. For the Tobacco Products industry, the median 3-Year RORE % is 2.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Tobacco's current 3-Year RORE % is 29.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Tobacco stock overvalued right now?
Based on GuruFocus' analysis, Japan Tobacco (JAPAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $31.64, compared to a current price of $37.74 — trading 19.3% above its estimated fair value. The current 3-Year RORE % is 29.90 and 1041.2% above the Tobacco Products industry median of 2.62. Japan Tobacco's overall GF Score™ is 75/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Japan Tobacco (JAPAF), the current 3-Year RORE % is 29.90 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 Japan Tobacco (JAPAF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Tobacco stock appears to be overvalued.
The current stock price of $37.74 is trading 19.3% above its estimated GF Value™ of $31.64.
GuruFocus considers Japan Tobacco to be Modestly Overvalued.
Key valuation signals for JAPAF:
3-Year RORE %: 29.90
GF Value™: $31.64 vs. price of $37.74 (19.3% above fair value)
Industry Position: 1041.2% above the Tobacco Products median (#8 of 42)
No single metric tells the full story. See the JAPAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Tobacco primarily sells cigarettes and reduced-risk products, organized in three clusters consisting of Asia (which includes its home market and countries in Asia Pacific), Western Europe, and EMA (which includes Eastern Europe, the Middle East North Africa, Turkey, Americas, and duty-free). Its leading cigarette brands include Winston (non-US), Camel (non-US), Mevius, and LD. Its reduced-risk brands include Logic in vaping, Ploom in heated tobacco, and Nordic Spirit in nicotine pouches, though these generates less than 5% of tobacco sales.
75GF Score
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