Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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.
Nippon Gear Co's 5-Year RORE % for the quarter that ended in Mar. 2026 was 32.57%.
The industry rank for Nippon Gear Co's 5-Year RORE % or its related term are showing as below:
TSE:6356's 5-Year RORE % is ranked better than 74.66% of 1172
companies
in the Vehicles & Parts industry
Industry Median: 9.605
vs TSE:6356: 32.57
Nippon Gear Co (TSE:6356) 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.
Nippon Gear Co 5-Year RORE % Related Terms
Nippon Gear Co 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Nippon Gear Co's 5-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.
TSE:6356 vs ORLY, AZO, GPC: 5-Year RORE % Comparison
For the Auto Parts subindustry, Nippon Gear 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.
Nippon Gear Co 5-Year RORE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Nippon Gear Co's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Nippon Gear 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.
Nippon Gear Co (TSE:6356) has a 5-Year RORE % of 32.57 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 Nippon Gear Co and its competitors. According to the industry distribution chart, Nippon Gear Co ranks #297 out of 1172 companies in the Vehicles & Parts industry, placing it in the top 25.3%.
Is Nippon Gear Co's 5-Year RORE % too high?
Nippon Gear Co's current 5-Year RORE % is 32.57. The Vehicles & Parts industry median 5-Year RORE % is 9.61. Nippon Gear Co's value of 32.57 is 239.1% above this industry median. Based on the distribution chart, Nippon Gear Co ranks #297 out of 1172 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Nippon Gear Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Gear Co's 5-Year RORE % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Nippon Gear Co ranks #297 out of 1172 companies for 5-Year RORE %. This puts Nippon Gear Co in the upper half of its industry. The industry median 5-Year RORE % is 9.61. Nippon Gear Co's value of 32.57 is 239.1% 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 Vehicles & Parts company?
The median 5-Year RORE % among Vehicles & Parts companies is 9.61, based on 1,172 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. Nippon Gear Co's current 5-Year RORE % of 32.57 is 239.1% 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 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 Nippon Gear Co and its competitors. For the Vehicles & Parts industry, the median 5-Year RORE % is 9.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Gear Co's current 5-Year RORE % is 32.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Gear Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Gear Co (TSE:6356) is currently considered Significantly Overvalued. The stock's GF Value™ is 円590.21, compared to a current price of 円1,303.00 — trading 120.8% above its estimated fair value. The current 5-Year RORE % is 32.57 and 239.1% above the Vehicles & Parts industry median of 9.61. Nippon Gear Co's overall GF Score™ is 71/100 with 1 warning sign 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 Nippon Gear Co (TSE:6356), the current 5-Year RORE % is 32.57 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 Nippon Gear Co (TSE:6356) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Gear Co stock appears to be overvalued.
The current stock price of 円1,303.00 is trading 120.8% above its estimated GF Value™ of 円590.21.
GuruFocus considers Nippon Gear Co to be Significantly Overvalued.
Key valuation signals for TSE:6356:
5-Year RORE %: 32.57
GF Value™: 円590.21 vs. price of 円1,303.00 (120.8% above fair value)
Industry Position: 239.1% above the Vehicles & Parts median (#297 of 1172)
No single metric tells the full story. See the TSE:6356 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Gear Co Ltd is engaged in the design, production, and sale of valve actuators, high-speed gear drivers, mixers, screw jacks, monitoring equipment, data communication equipment, control equipment, and software. It offers valve actuators for a range of applications in petroleum, nuclear, generating plants, and water/sewer pipelines; jacks for use in lifting/lowering, inclines, pulling, opening/closing, adjustment, and holding; gear drives for power plant, chemical plant, wastewater treatment plant, and other applications; and gears for automotive, railroad, industrial machine, and other industries.
71GF Score
Get the complete analysis for TSE:6356
5-Year RORE % 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:6356 has been successfully added to your 
