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Kumagai Gumi CoKMGGF +4.60%79 Return-on-Tangible-Asset is 7.13% as of Mar. 2026, which is 65% above its 10-year median of 4.33. GuruFocus rates KMGGF with a GF Score™ of 79/100 and a GF Value™ of $7.63 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,783 Construction companies, Kumagai Gumi Co ranks better than 59.17% 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. Kumagai Gumi Co's annualizedNet Income for the quarter that ended in Mar. 2026 was $204 Mil. Kumagai Gumi Co's average total tangible assets for the quarter that ended in Mar. 2026 was $2,866 Mil. Therefore, Kumagai Gumi Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 7.13%.
The historical rank and industry rank for Kumagai Gumi Co's Return-on-Tangible-Asset or its related term are showing as below:
KMGGF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.98 Med: 4.33 Max: 6.24
Current: 4.47
During the past 13 years, Kumagai Gumi Co's highest Return-on-Tangible-Asset was 6.24%. The lowest was 1.98%. And the median was 4.33%.
KMGGF's Return-on-Tangible-Asset is ranked better than 59.17% of 1783
companies
in the Construction industry
Industry Median: 3.04
vs KMGGF: 4.47
Kumagai Gumi Co (OTCPK:KMGGF) 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.
Kumagai Gumi Co Return-on-Tangible-Asset Related Terms
Kumagai Gumi Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Kumagai Gumi Co'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.
KMGGF vs PWR, FIX, EME: Return-on-Tangible-Asset Comparison
For the Engineering & Construction subindustry, Kumagai Gumi 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.
Kumagai Gumi Co Return-on-Tangible-Asset vs Construction Industry
For the Construction industry and Industrials sector, Kumagai Gumi Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Kumagai Gumi 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 7.13% mean?
Kumagai Gumi Co (KMGGF) has a Return-on-Tangible-Asset of 7.13% 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 Kumagai Gumi Co and its competitors. This is 65% above median its historical median of 4.33. Over the past decade, Kumagai Gumi Co's Return-on-Tangible-Asset has ranged from 1.98 to 6.24. According to the industry distribution chart, Kumagai Gumi Co ranks #728 out of 1783 companies in the Construction industry, placing it in the top 40.8%.
Is Kumagai Gumi Co's Return-on-Tangible-Asset too high?
Kumagai Gumi Co's current Return-on-Tangible-Asset of 7.13% is 65% above median its 10-year median of 4.33. Over the past 10 years, this metric has ranged from a low of 1.98 to a high of 6.24. The Construction industry median Return-on-Tangible-Asset is 3.04. Kumagai Gumi Co's value of 7.13% is 134.5% above this industry median. Based on the distribution chart, Kumagai Gumi Co ranks #728 out of 1783 companies in the Construction industry, which is above the industry midpoint. Overall, Kumagai Gumi Co has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kumagai Gumi Co's Return-on-Tangible-Asset compare to PWR and FIX?
According to the Construction industry distribution chart, Kumagai Gumi Co ranks #728 out of 1783 companies for Return-on-Tangible-Asset. This puts Kumagai Gumi Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.04. Kumagai Gumi Co's value of 7.13% is 134.5% above this benchmark. Historically, Kumagai Gumi Co's own Return-on-Tangible-Asset has ranged from 1.98 to 6.24 over the past decade. While the company's 10-year median is 4.33 vs. the industry median of 3.04, Kumagai Gumi Co 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 Construction company?
The median Return-on-Tangible-Asset among Construction companies is 3.04, based on 1,783 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. Kumagai Gumi Co's current Return-on-Tangible-Asset of 7.13% is 134.5% 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 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 Kumagai Gumi Co and its competitors. For the Construction industry, the median Return-on-Tangible-Asset is 3.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kumagai Gumi Co's current Return-on-Tangible-Asset is 7.13%, which is 65% above median its own 10-year median of 4.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kumagai Gumi Co stock overvalued right now?
Based on GuruFocus' analysis, Kumagai Gumi Co (KMGGF) is currently considered Modestly Overvalued. The stock's GF Value™ is $7.63, compared to a current price of $9.10 — trading 19.3% above its estimated fair value. The current Return-on-Tangible-Asset is 7.13%, which is 65% above median its 10-year median of 4.33 and 134.5% above the Construction industry median of 3.04. Kumagai Gumi Co's overall GF Score™ is 79/100 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 Kumagai Gumi Co (KMGGF), the current Return-on-Tangible-Asset is 7.13% 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 Kumagai Gumi Co (KMGGF) Overvalued in 2026?
Based on GuruFocus' analysis, Kumagai Gumi Co stock appears to be overvalued.
The current stock price of $9.10 is trading 19.3% above its estimated GF Value™ of $7.63.
GuruFocus considers Kumagai Gumi Co to be Modestly Overvalued.
Key valuation signals for KMGGF:
Return-on-Tangible-Asset: 7.13% (65% above median its 10-year median of 4.33)
GF Value™: $7.63 vs. price of $9.10 (19.3% above fair value)
Industry Position: 134.5% above the Construction median (#728 of 1783)
No single metric tells the full story. See the KMGGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kumagai Gumi Co Ltd is a Japanese company that provides services in construction and civil engineering. The company analyzes, designs, and supervises complex construction projects. It also offers engineering and technical services throughout the construction process. These projects include roads, railways, airports, water systems, and other public facilities. In addition, the company is engaged in manufacturing and selling construction materials and machinery. Construction activities account for the majority of revenue. The company generates additional revenue from developing residential and commercial complexes and either operating the building or acting as a broker and selling the real estate.
79GF Score
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