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Sumitomo Forestry CoSMFRF 83 Return-on-Tangible-Asset is 6.04% as of Dec. 2025, which is 30% above its 10-year median of 4.64. GuruFocus rates SMFRF with a GF Score™ of 83/100 and a GF Value™ of $14.01 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 96 Homebuilding & Construction companies, Sumitomo Forestry Co ranks better than 62.5% 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. Sumitomo Forestry Co's annualizedNet Income for the quarter that ended in Dec. 2025 was $965 Mil. Sumitomo Forestry Co's average total tangible assets for the quarter that ended in Dec. 2025 was $15,967 Mil. Therefore, Sumitomo Forestry Co's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 6.04%.
The historical rank and industry rank for Sumitomo Forestry Co's Return-on-Tangible-Asset or its related term are showing as below:
SMFRF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.45 Med: 4.64 Max: 7.74
Current: 4.41
During the past 13 years, Sumitomo Forestry Co's highest Return-on-Tangible-Asset was 7.74%. The lowest was 1.45%. And the median was 4.64%.
SMFRF's Return-on-Tangible-Asset is ranked better than 62.5% of 96
companies
in the Homebuilding & Construction industry
Industry Median: 3.32
vs SMFRF: 4.41
Sumitomo Forestry Co (OTCPK:SMFRF) 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.
Sumitomo Forestry Co Return-on-Tangible-Asset Related Terms
Sumitomo Forestry Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Sumitomo Forestry 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.
Sumitomo Forestry Co Return-on-Tangible-Asset Chart
SMFRF vs DHI, PHM, LEN: Return-on-Tangible-Asset Comparison
For the Residential Construction subindustry, Sumitomo Forestry 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.
Sumitomo Forestry Co Return-on-Tangible-Asset vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Sumitomo Forestry Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Sumitomo Forestry 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 6.04% mean?
Sumitomo Forestry Co (SMFRF) has a Return-on-Tangible-Asset of 6.04% 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 Sumitomo Forestry Co and its competitors. This is 30% above median its historical median of 4.64. Over the past decade, Sumitomo Forestry Co's Return-on-Tangible-Asset has ranged from 1.45 to 7.74. According to the industry distribution chart, Sumitomo Forestry Co ranks #36 out of 96 companies in the Homebuilding & Construction industry, placing it in the top 37.5%.
Is Sumitomo Forestry Co's Return-on-Tangible-Asset too high?
Sumitomo Forestry Co's current Return-on-Tangible-Asset of 6.04% is 30% above median its 10-year median of 4.64. Over the past 10 years, this metric has ranged from a low of 1.45 to a high of 7.74. The Homebuilding & Construction industry median Return-on-Tangible-Asset is 3.32. Sumitomo Forestry Co's value of 6.04% is 81.9% above this industry median. Based on the distribution chart, Sumitomo Forestry Co ranks #36 out of 96 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Sumitomo Forestry Co has a GF Score™ of 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Forestry Co's Return-on-Tangible-Asset compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Sumitomo Forestry Co ranks #36 out of 96 companies for Return-on-Tangible-Asset. This puts Sumitomo Forestry Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.32. Sumitomo Forestry Co's value of 6.04% is 81.9% above this benchmark. Historically, Sumitomo Forestry Co's own Return-on-Tangible-Asset has ranged from 1.45 to 7.74 over the past decade. While the company's 10-year median is 4.64 vs. the industry median of 3.32, Sumitomo Forestry 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 Homebuilding & Construction company?
The median Return-on-Tangible-Asset among Homebuilding & Construction companies is 3.32, based on 96 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. Sumitomo Forestry Co's current Return-on-Tangible-Asset of 6.04% is 81.9% 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 Sumitomo Forestry Co and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Asset is 3.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Forestry Co's current Return-on-Tangible-Asset is 6.04%, which is 30% above median its own 10-year median of 4.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Forestry Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Forestry Co (SMFRF) is currently considered Possible Value Trap. The stock's GF Value™ is $14.01, compared to a current price of $7.90 — trading 43.6% below its estimated fair value. The current Return-on-Tangible-Asset is 6.04%, which is 30% above median its 10-year median of 4.64 and 81.9% above the Homebuilding & Construction industry median of 3.32. Sumitomo Forestry Co's overall GF Score™ is 83/100 with 4 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 Sumitomo Forestry Co (SMFRF), the current Return-on-Tangible-Asset is 6.04% 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 Sumitomo Forestry Co (SMFRF) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Forestry Co stock appears to be undervalued.
The current stock price of $7.90 is trading 43.6% below its estimated GF Value™ of $14.01.
GuruFocus considers Sumitomo Forestry Co to be Possible Value Trap.
Key valuation signals for SMFRF:
Return-on-Tangible-Asset: 6.04% (30% above median its 10-year median of 4.64)
GF Value™: $14.01 vs. price of $7.90 (43.6% below fair value)
Industry Position: 81.9% above the Homebuilding & Construction median (#36 of 96)
No single metric tells the full story. See the SMFRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Forestry Co Ltd is a Japan-based company engaged in the timber, housing, and environmental businesses. The company operates through four reportable segments: Timber Building Materials Business, Housing Business, Construction and Real Estate Business, and Resources and Environment Business. The Timber Building Materials Business purchases, manufactures, and sells timber and building materials. The Housing Business handles housing construction, renovation, and real estate brokerage. The Construction and Real Estate Business develops condominiums, apartment buildings, and commercial complexes. The Resources and Environment Business focuses on renewable energy and forestry resource operations. It generates the majority of revenue from the Construction and real estate business segment.
83GF 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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