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Nippon Kayaku CoNPKYY 72 Return-on-Tangible-Asset is 5.55% as of Dec. 2025, which is 11% above its 10-year median of 5.00. GuruFocus rates NPKYY with a GF Score™ of 72/100 and a GF Value™ of $10.95 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,612 Chemicals companies, Nippon Kayaku Co ranks better than 72.21% 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. Nippon Kayaku Co's annualizedNet Income for the quarter that ended in Dec. 2025 was $145 Mil. Nippon Kayaku Co's average total tangible assets for the quarter that ended in Dec. 2025 was $2,602 Mil. Therefore, Nippon Kayaku Co's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 5.55%.
The historical rank and industry rank for Nippon Kayaku Co's Return-on-Tangible-Asset or its related term are showing as below:
NPKYY'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.22 Med: 5 Max: 6.45
Current: 6.4
During the past 13 years, Nippon Kayaku Co's highest Return-on-Tangible-Asset was 6.45%. The lowest was 1.22%. And the median was 5.00%.
NPKYY's Return-on-Tangible-Asset is ranked better than 72.21% of 1612
companies
in the Chemicals industry
Industry Median: 3.08
vs NPKYY: 6.40
Nippon Kayaku Co (OTCPK:NPKYY) 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.
Nippon Kayaku Co Return-on-Tangible-Asset Related Terms
Nippon Kayaku Co Return-on-Tangible-Asset Historical Data
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The historical data trend for Nippon Kayaku 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.
For the Chemicals subindustry, Nippon Kayaku 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.
Nippon Kayaku Co Return-on-Tangible-Asset vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Kayaku Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Nippon Kayaku 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 (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 5.55% mean?
Nippon Kayaku Co (NPKYY) has a Return-on-Tangible-Asset of 5.55% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Nippon Kayaku Co and its competitors. This is 11% above median its historical median of 5.00. Over the past decade, Nippon Kayaku Co's Return-on-Tangible-Asset has ranged from 1.22 to 6.45. According to the industry distribution chart, Nippon Kayaku Co ranks #448 out of 1612 companies in the Chemicals industry, placing it in the top 27.8%.
Is Nippon Kayaku Co's Return-on-Tangible-Asset too high?
Nippon Kayaku Co's current Return-on-Tangible-Asset of 5.55% is 11% above median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 1.22 to a high of 6.45. The Chemicals industry median Return-on-Tangible-Asset is 3.08. Nippon Kayaku Co's value of 5.55% is 80.2% above this industry median. Based on the distribution chart, Nippon Kayaku Co ranks #448 out of 1612 companies in the Chemicals industry, which is above the industry midpoint. Overall, Nippon Kayaku Co has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Kayaku Co's Return-on-Tangible-Asset compare to DOW?
According to the Chemicals industry distribution chart, Nippon Kayaku Co ranks #448 out of 1612 companies for Return-on-Tangible-Asset. This puts Nippon Kayaku Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.08. Nippon Kayaku Co's value of 5.55% is 80.2% above this benchmark. Historically, Nippon Kayaku Co's own Return-on-Tangible-Asset has ranged from 1.22 to 6.45 over the past decade. While the company's 10-year median is 5.00 vs. the industry median of 3.08, Nippon Kayaku 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 Chemicals company?
The median Return-on-Tangible-Asset among Chemicals companies is 3.08, based on 1,612 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. Nippon Kayaku Co's current Return-on-Tangible-Asset of 5.55% is 80.2% 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 Nippon Kayaku Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Asset is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Kayaku Co's current Return-on-Tangible-Asset is 5.55%, which is 11% above median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Kayaku Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Kayaku Co (NPKYY) is currently considered Modestly Overvalued. The stock's GF Value™ is $10.95, compared to a current price of $13.16 — trading 20.2% above its estimated fair value. The current Return-on-Tangible-Asset is 5.55%, which is 11% above median its 10-year median of 5.00 and 80.2% above the Chemicals industry median of 3.08. Nippon Kayaku Co's overall GF Score™ is 72/100 with 7 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 Nippon Kayaku Co (NPKYY), the current Return-on-Tangible-Asset is 5.55% as of Dec. 2025. 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 Kayaku Co (NPKYY) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Kayaku Co stock appears to be overvalued.
The current stock price of $13.16 is trading 20.2% above its estimated GF Value™ of $10.95.
GuruFocus considers Nippon Kayaku Co to be Modestly Overvalued.
Key valuation signals for NPKYY:
Return-on-Tangible-Asset: 5.55% (11% above median its 10-year median of 5.00)
GF Value™: $10.95 vs. price of $13.16 (20.2% above fair value)
Industry Position: 80.2% above the Chemicals median (#448 of 1612)
No single metric tells the full story. See the NPKYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Kayaku Co Ltd manufactures and sells a variety of chemicals. The firm organizes itself into four segments based on product type. The functional chemicals segment, which generates more revenue than any other segment, sells epoxy resins used as flame retardants in electronics, colorants and dyes used in inkjet printers and the manufacture of textiles. The pharmaceuticals segment sells anti-cancer drugs, biological drugs, cardiovascular agents, vitamin compounds, and anti-inflammatory agents. The safety systems segment sells airbag inflators and micro gas generators for seatbelt pretensioners to the automotive industry, both of which are used to protect passengers during an accident. The agrochemicals segment sells insecticides and herbicides. The majority of revenue comes from Asia.
72GF Score
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