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Hitachi Construction Machinery CoHTCMF -1.11%76 Return-on-Tangible-Asset is 2.28% as of Mar. 2026, which is 53% below its 10-year median of 4.82. GuruFocus rates HTCMF with a GF Score™ of 76/100 and a GF Value™ of $27.93 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 212 Farm & Heavy Construction Machinery companies, Hitachi Construction Machinery Co ranks better than 54.25% on this metric.
The historical rank and industry rank for Hitachi Construction Machinery Co's Return-on-Tangible-Asset or its related term are showing as below:
HTCMF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.87 Med: 4.82 Max: 6.45
Current: 4.3
During the past 13 years, Hitachi Construction Machinery Co's highest Return-on-Tangible-Asset was 6.45%. The lowest was 0.87%. And the median was 4.82%.
HTCMF's Return-on-Tangible-Asset is ranked better than 54.25% of 212
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 3.985
vs HTCMF: 4.30
Hitachi Construction Machinery Co (OTCPK:HTCMF) Return-on-Tangible-Asset Explanation
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.
Hitachi Construction Machinery Co Return-on-Tangible-Asset Related Terms
Hitachi Construction Machinery Co Return-on-Tangible-Asset 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.
Hitachi Construction Machinery Co Return-on-Tangible-Asset Chart
HTCMF vs CAT, DE, PCAR: Return-on-Tangible-Asset Comparison
For the Farm & Heavy Construction Machinery subindustry, Hitachi Construction Machinery Co'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.
Hitachi Construction Machinery Co Return-on-Tangible-Asset vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Hitachi Construction Machinery Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Hitachi Construction Machinery Co'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 2.28% mean?
Hitachi Construction Machinery Co (HTCMF) has a Return-on-Tangible-Asset of 2.28% 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 Hitachi Construction Machinery Co and its competitors. This is 53% below median its historical median of 4.82. Over the past decade, Hitachi Construction Machinery Co's Return-on-Tangible-Asset has ranged from 0.87 to 6.45. According to the industry distribution chart, Hitachi Construction Machinery Co ranks #97 out of 212 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 45.8%.
Is Hitachi Construction Machinery Co's Return-on-Tangible-Asset too high?
Hitachi Construction Machinery Co's current Return-on-Tangible-Asset of 2.28% is 53% below median its 10-year median of 4.82. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 6.45. The Farm & Heavy Construction Machinery industry median Return-on-Tangible-Asset is 3.99. Hitachi Construction Machinery Co's value of 2.28% is 42.8% below this industry median. Based on the distribution chart, Hitachi Construction Machinery Co ranks #97 out of 212 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Hitachi Construction Machinery Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hitachi Construction Machinery Co's Return-on-Tangible-Asset compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Hitachi Construction Machinery Co ranks #97 out of 212 companies for Return-on-Tangible-Asset. This puts Hitachi Construction Machinery Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.99. Hitachi Construction Machinery Co's value of 2.28% is 42.8% below this benchmark. Historically, Hitachi Construction Machinery Co's own Return-on-Tangible-Asset has ranged from 0.87 to 6.45 over the past decade. While the company's 10-year median is 4.82 vs. the industry median of 3.99, Hitachi Construction Machinery Co has consistently been below 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 Farm & Heavy Construction Machinery company?
The median Return-on-Tangible-Asset among Farm & Heavy Construction Machinery companies is 3.99, based on 212 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. Hitachi Construction Machinery Co's current Return-on-Tangible-Asset of 2.28% is 42.8% below 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 Hitachi Construction Machinery Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median Return-on-Tangible-Asset is 3.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hitachi Construction Machinery Co's current Return-on-Tangible-Asset is 2.28%, which is 53% below median its own 10-year median of 4.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hitachi Construction Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Hitachi Construction Machinery Co (HTCMF) is currently considered Modestly Overvalued. The stock's GF Value™ is $27.93, compared to a current price of $32.90 — trading 17.8% above its estimated fair value. The current Return-on-Tangible-Asset is 2.28%, which is 53% below median its 10-year median of 4.82 and 42.8% below the Farm & Heavy Construction Machinery industry median of 3.99. Hitachi Construction Machinery Co's overall GF Score™ is 76/100 with 2 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 Hitachi Construction Machinery Co (HTCMF), the current Return-on-Tangible-Asset is 2.28% 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 Hitachi Construction Machinery Co (HTCMF) Overvalued in 2026?
Based on GuruFocus' analysis, Hitachi Construction Machinery Co stock appears to be overvalued.
The current stock price of $32.90 is trading 17.8% above its estimated GF Value™ of $27.93.
GuruFocus considers Hitachi Construction Machinery Co to be Modestly Overvalued.
Key valuation signals for HTCMF:
Return-on-Tangible-Asset: 2.28% (53% below median its 10-year median of 4.82)
GF Value™: $27.93 vs. price of $32.90 (17.8% above fair value)
Industry Position: 42.8% below the Farm & Heavy Construction Machinery median (#97 of 212)
No single metric tells the full story. See the HTCMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hitachi Construction Machinery Co Business Description
Hitachi Construction Machinery manufactures and sells construction and mining machinery, and provides related services such as parts supply, rentals, and others. HCM was established in 1970 as a subsidiary of Hitachi, but its origins date back to 1949 when it introduced Japan's first mechanical excavator. The company's main products include hydraulic excavators for mining and construction, rigid dump trucks, and wheel loaders. As of August 2022, Hitachi is no longer the parent company of HCM, after selling 26% of its stake to HCJI Holdings, a joint venture between Itochu and Japan Industrial Partners. Currently, Hitachi has a 25.42% stake in Hitachi Construction Machinery as an equity-method affiliate. HCM is based in Tokyo.
76GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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