Sumitomo Electric IndustriesSMTOY +4.43%76 Return-on-Tangible-Asset is 15.98% as of Mar. 2026, which is 326% above its 10-year median of 3.75. GuruFocus rates SMTOY with a GF Score™ of 76/100 and a GF Value™ of $2.27 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,333 Vehicles & Parts companies, Sumitomo Electric Industries ranks better than 81.47% on this metric.
The historical rank and industry rank for Sumitomo Electric Industries's Return-on-Tangible-Asset or its related term are showing as below:
SMTOY'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.76 Med: 3.75 Max: 8.1
Current: 8.1
During the past 13 years, Sumitomo Electric Industries's highest Return-on-Tangible-Asset was 8.10%. The lowest was 1.76%. And the median was 3.75%.
SMTOY's Return-on-Tangible-Asset is ranked better than 81.47% of 1333
companies
in the Vehicles & Parts industry
Industry Median: 3.12
vs SMTOY: 8.10
Sumitomo Electric Industries (OTCPK:SMTOY) 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 Electric Industries Return-on-Tangible-Asset Related Terms
Sumitomo Electric Industries 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.
Sumitomo Electric Industries Return-on-Tangible-Asset Chart
SMTOY vs ORLY, AZO, GPC: Return-on-Tangible-Asset Comparison
For the Auto Parts subindustry, Sumitomo Electric Industries'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 Electric Industries Return-on-Tangible-Asset vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sumitomo Electric Industries's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Sumitomo Electric Industries'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 15.98% mean?
Sumitomo Electric Industries (SMTOY) has a Return-on-Tangible-Asset of 15.98% 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 Sumitomo Electric Industries and its competitors. This is 326% above median its historical median of 3.75. Over the past decade, Sumitomo Electric Industries' Return-on-Tangible-Asset has ranged from 1.76 to 8.10. According to the industry distribution chart, Sumitomo Electric Industries ranks #247 out of 1333 companies in the Vehicles & Parts industry, placing it in the top 18.5%.
Is Sumitomo Electric Industries' Return-on-Tangible-Asset too high?
Sumitomo Electric Industries' current Return-on-Tangible-Asset of 15.98% is 326% above median its 10-year median of 3.75. Over the past 10 years, this metric has ranged from a low of 1.76 to a high of 8.10. The Vehicles & Parts industry median Return-on-Tangible-Asset is 3.12. Sumitomo Electric Industries' value of 15.98% is 412.2% above this industry median. Based on the distribution chart, Sumitomo Electric Industries ranks #247 out of 1333 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Sumitomo Electric Industries has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Electric Industries' Return-on-Tangible-Asset compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Sumitomo Electric Industries ranks #247 out of 1333 companies for Return-on-Tangible-Asset. This places Sumitomo Electric Industries in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.12. Sumitomo Electric Industries' value of 15.98% is 412.2% above this benchmark. Historically, Sumitomo Electric Industries' own Return-on-Tangible-Asset has ranged from 1.76 to 8.10 over the past decade. While the company's 10-year median is 3.75 vs. the industry median of 3.12, Sumitomo Electric Industries 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 1,333 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 Electric Industries's current Return-on-Tangible-Asset of 15.98% is 412.2% 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 Sumitomo Electric Industries 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. Sumitomo Electric Industries's current Return-on-Tangible-Asset is 15.98%, which is 326% above median its own 10-year median of 3.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Electric Industries stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Electric Industries (SMTOY) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.27, compared to a current price of $8.02 — trading 253.3% above its estimated fair value. The current Return-on-Tangible-Asset is 15.98%, which is 326% above median its 10-year median of 3.75 and 412.2% above the Vehicles & Parts industry median of 3.12. Sumitomo Electric Industries' overall GF Score™ is 76/100 with 1 warning sign 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 Electric Industries (SMTOY), the current Return-on-Tangible-Asset is 15.98% 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 Sumitomo Electric Industries (SMTOY) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Electric Industries stock appears to be overvalued.
The current stock price of $8.02 is trading 253.3% above its estimated GF Value™ of $2.27.
GuruFocus considers Sumitomo Electric Industries to be Significantly Overvalued.
Key valuation signals for SMTOY:
Return-on-Tangible-Asset: 15.98% (326% above median its 10-year median of 3.75)
GF Value™: $2.27 vs. price of $8.02 (253.3% above fair value)
Industry Position: 412.2% above the Vehicles & Parts median (#247 of 1333)
No single metric tells the full story. See the SMTOY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Electric Industries Ltd manufactures and sells electric wires and cables, and other products. The company operates through five segments. The Automotive related business covers wire harnesses, anti-vibration rubber, hoses, electrical parts, and traffic control systems. The Electronics related business provides electronic wires, flexible printed circuits, fluoropolymer products, and metal components. The Environment and Energy related business handles power transmission equipment, substation systems, vacuum and beam equipment, and conductive products. The Industrial Materials business includes steel wire, tools, optical components, and sintered parts. The Information and Communication business offers fiber optic cables, communication equipment, and optical devices.
76GF Score
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