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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.
Sumitomo Seika Chemicals Co's 5-Year RORE % for the quarter that ended in Mar. 2026 was 9.76%.
Sumitomo Seika Chemicals Co (TSE:4008) 5-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, 5-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.
Sumitomo Seika Chemicals Co 5-Year RORE % Related Terms
Sumitomo Seika Chemicals Co 5-Year RORE % Historical Data
* 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.
TSE:4008 vs LIN, SHW, ECL: 5-Year RORE % Comparison
For the Specialty Chemicals subindustry, Sumitomo Seika Chemicals Co's 5-Year RORE %, along with its competitors' market caps and 5-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.
Sumitomo Seika Chemicals Co 5-Year RORE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sumitomo Seika Chemicals Co's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Sumitomo Seika Chemicals Co's 5-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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
Sumitomo Seika Chemicals Co (TSE:4008) has a 5-Year RORE % of 9.76 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Sumitomo Seika Chemicals Co and its competitors. According to the industry distribution chart, Sumitomo Seika Chemicals Co ranks #574 out of 1441 companies in the Chemicals industry, placing it in the top 39.8%.
Is Sumitomo Seika Chemicals Co's 5-Year RORE % too high?
Sumitomo Seika Chemicals Co's current 5-Year RORE % is 9.76. The Chemicals industry median 5-Year RORE % is 1.04. Sumitomo Seika Chemicals Co's value of 9.76 is 838.5% above this industry median. Based on the distribution chart, Sumitomo Seika Chemicals Co ranks #574 out of 1441 companies in the Chemicals industry, which is above the industry midpoint. Overall, Sumitomo Seika Chemicals Co has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Seika Chemicals Co's 5-Year RORE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sumitomo Seika Chemicals Co ranks #574 out of 1441 companies for 5-Year RORE %. This puts Sumitomo Seika Chemicals Co in the upper half of its industry. The industry median 5-Year RORE % is 1.04. Sumitomo Seika Chemicals Co's value of 9.76 is 838.5% 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 5-Year RORE % for a Chemicals company?
The median 5-Year RORE % among Chemicals companies is 1.04, based on 1,441 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sumitomo Seika Chemicals Co's current 5-Year RORE % of 9.76 is 838.5% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Sumitomo Seika Chemicals Co and its competitors. For the Chemicals industry, the median 5-Year RORE % is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Seika Chemicals Co's current 5-Year RORE % is 9.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Seika Chemicals Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Seika Chemicals Co (TSE:4008) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,058.45, compared to a current price of 円1,465.00 — trading 38.4% above its estimated fair value. The current 5-Year RORE % is 9.76 and 838.5% above the Chemicals industry median of 1.04. Sumitomo Seika Chemicals Co's overall GF Score™ is 72/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Sumitomo Seika Chemicals Co (TSE:4008), the current 5-Year RORE % is 9.76 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 Sumitomo Seika Chemicals Co (TSE:4008) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Seika Chemicals Co stock appears to be overvalued.
The current stock price of 円1,465.00 is trading 38.4% above its estimated GF Value™ of 円1,058.45.
GuruFocus considers Sumitomo Seika Chemicals Co to be Significantly Overvalued.
Key valuation signals for TSE:4008:
5-Year RORE %: 9.76
GF Value™: 円1,058.45 vs. price of 円1,465.00 (38.4% above fair value)
Industry Position: 838.5% above the Chemicals median (#574 of 1441)
No single metric tells the full story. See the TSE:4008 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Seika Chemicals Co Ltd manufactures and sells chemicals and chemical-based products in three segments based on product type. The superabsorbent-polymers segment, which generates the majority of revenue, sells diapers, sanitary napkins, water repellent tape for power and optical cables, and sodium polyacrylate products used as a water-retention agent for agricultural and horticultural use. The chemicals segment sells plastic polymers, latex, and chemical additives used in the production of lithium-ion batteries and pharmaceuticals. The gases segment sells gases for industrial use, which includes electronics production, as well as aerosol propellant gas and nitrous oxide.
72GF Score
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