DensoDNZOF 73 Return-on-Tangible-Asset is 8.05% as of Mar. 2026, which is 83% above its 10-year median of 4.41. GuruFocus rates DNZOF with a GF Score™ of 73/100 and a GF Value™ of $11.55 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,336 Vehicles & Parts companies, Denso ranks better than 68.04% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Denso's annualizedNet Income for the quarter that ended in Mar. 2026 was $4,287 Mil. Denso's average total tangible assets for the quarter that ended in Mar. 2026 was $53,251 Mil. Therefore, Denso's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 8.05%.
The historical rank and industry rank for Denso's Return-on-Tangible-Asset or its related term are showing as below:
DNZOF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.21 Med: 4.41 Max: 8.61
Current: 5.51
During the past 13 years, Denso's highest Return-on-Tangible-Asset was 8.61%. The lowest was 1.21%. And the median was 4.41%.
DNZOF's Return-on-Tangible-Asset is ranked better than 68.04% of 1336
companies
in the Vehicles & Parts industry
Industry Median: 3.115
vs DNZOF: 5.51
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Denso Return-on-Tangible-Asset Related Terms
Denso Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Denso's Return-on-Tangible-Asset 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.
DNZOF vs ORLY, AZO, GPC: Return-on-Tangible-Asset Comparison
For the Auto Parts subindustry, Denso's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Denso Return-on-Tangible-Asset vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Denso's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Denso's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets 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.
What does a Return-on-Tangible-Asset of 8.05% mean?
Denso (DNZOF) has a Return-on-Tangible-Asset of 8.05% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Denso and its competitors. This is 83% above median its historical median of 4.41. Over the past decade, Denso's Return-on-Tangible-Asset has ranged from 1.21 to 8.61. According to the industry distribution chart, Denso ranks #427 out of 1336 companies in the Vehicles & Parts industry, placing it in the top 32%.
Is Denso's Return-on-Tangible-Asset too high?
Denso's current Return-on-Tangible-Asset of 8.05% is 83% above median its 10-year median of 4.41. Over the past 10 years, this metric has ranged from a low of 1.21 to a high of 8.61. The Vehicles & Parts industry median Return-on-Tangible-Asset is 3.12. Denso's value of 8.05% is 158.4% above this industry median. Based on the distribution chart, Denso ranks #427 out of 1336 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Denso has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Denso's Return-on-Tangible-Asset compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Denso ranks #427 out of 1336 companies for Return-on-Tangible-Asset. This puts Denso in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.12. Denso's value of 8.05% is 158.4% above this benchmark. Historically, Denso's own Return-on-Tangible-Asset has ranged from 1.21 to 8.61 over the past decade. While the company's 10-year median is 4.41 vs. the industry median of 3.12, Denso 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 Return-on-Tangible-Asset for a Vehicles & Parts company?
The median Return-on-Tangible-Asset among Vehicles & Parts companies is 3.12, based on 1,336 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Denso's current Return-on-Tangible-Asset of 8.05% is 158.4% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Denso and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Asset is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Denso's current Return-on-Tangible-Asset is 8.05%, which is 83% above median its own 10-year median of 4.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Denso stock overvalued right now?
Based on GuruFocus' analysis, Denso (DNZOF) is currently considered Fairly Valued. The stock's GF Value™ is $11.55, compared to a current price of $11.98 — trading 3.7% above its estimated fair value. The current Return-on-Tangible-Asset is 8.05%, which is 83% above median its 10-year median of 4.41 and 158.4% above the Vehicles & Parts industry median of 3.12. Denso's overall GF Score™ is 73/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Denso (DNZOF), the current Return-on-Tangible-Asset is 8.05% 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 Denso (DNZOF) Overvalued in 2026?
Based on GuruFocus' analysis, Denso stock appears to be overvalued.
The current stock price of $11.98 is trading 3.7% above its estimated GF Value™ of $11.55.
GuruFocus considers Denso to be Fairly Valued.
Key valuation signals for DNZOF:
Return-on-Tangible-Asset: 8.05% (83% above median its 10-year median of 4.41)
GF Value™: $11.55 vs. price of $11.98 (3.7% above fair value)
Industry Position: 158.4% above the Vehicles & Parts median (#427 of 1336)
No single metric tells the full story. See the DNZOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Denso was founded on Dec. 16, 1949, as Nippondenso, and is now a leading global manufacturer of automotive components, ranging from thermal and powertrain control systems to electronic and electrification solutions, headquartered in Kariya, Aichi Prefecture, Japan, and a core member of the Toyota Group.
73GF Score
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