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OTECTSE:1736 +1.25%73 Return-on-Tangible-Asset is 16.74% as of Mar. 2026, which is 226% above its 10-year median of 5.13. GuruFocus rates TSE:1736 with a GF Score™ of 73/100 and a GF Value™ of 円1,462.45 (Significantly Overvalued). Among 160 Industrial Distribution companies, OTEC ranks better than 85.62% 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. OTEC's annualizedNet Income for the quarter that ended in Mar. 2026 was 円6,255 Mil. OTEC's average total tangible assets for the quarter that ended in Mar. 2026 was 円37,373 Mil. Therefore, OTEC's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 16.74%.
The historical rank and industry rank for OTEC's Return-on-Tangible-Asset or its related term are showing as below:
TSE:1736'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 4.66 Med: 5.13 Max: 10.14
Current: 9.95
During the past 13 years, OTEC's highest Return-on-Tangible-Asset was 10.14%. The lowest was 4.66%. And the median was 5.13%.
TSE:1736's Return-on-Tangible-Asset is ranked better than 85.62% of 160
companies
in the Industrial Distribution industry
Industry Median: 4.335
vs TSE:1736: 9.95
OTEC (TSE:1736) 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.
OTEC Return-on-Tangible-Asset Related Terms
OTEC Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for OTEC'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.
TSE:1736 vs GWW, FAST, FERG: Return-on-Tangible-Asset Comparison
For the Industrial Distribution subindustry, OTEC'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.
OTEC Return-on-Tangible-Asset vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, OTEC's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where OTEC'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 16.74% mean?
OTEC (TSE:1736) has a Return-on-Tangible-Asset of 16.74% 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 OTEC and its competitors. This is 226% above median its historical median of 5.13. Over the past decade, OTEC's Return-on-Tangible-Asset has ranged from 4.66 to 10.14. According to the industry distribution chart, OTEC ranks #23 out of 160 companies in the Industrial Distribution industry, placing it in the top 14.4%.
Is OTEC's Return-on-Tangible-Asset too high?
OTEC's current Return-on-Tangible-Asset of 16.74% is 226% above median its 10-year median of 5.13. Over the past 10 years, this metric has ranged from a low of 4.66 to a high of 10.14. The Industrial Distribution industry median Return-on-Tangible-Asset is 4.34. OTEC's value of 16.74% is 286.2% above this industry median. Based on the distribution chart, OTEC ranks #23 out of 160 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, OTEC has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does OTEC's Return-on-Tangible-Asset compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, OTEC ranks #23 out of 160 companies for Return-on-Tangible-Asset. This places OTEC in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 4.34. OTEC's value of 16.74% is 286.2% above this benchmark. Historically, OTEC's own Return-on-Tangible-Asset has ranged from 4.66 to 10.14 over the past decade. While the company's 10-year median is 5.13 vs. the industry median of 4.34, OTEC 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 an Industrial Distribution company?
The median Return-on-Tangible-Asset among Industrial Distribution companies is 4.34, based on 160 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. OTEC's current Return-on-Tangible-Asset of 16.74% is 286.2% 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 OTEC and its competitors. For the Industrial Distribution industry, the median Return-on-Tangible-Asset is 4.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. OTEC's current Return-on-Tangible-Asset is 16.74%, which is 226% above median its own 10-year median of 5.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is OTEC stock overvalued right now?
Based on GuruFocus' analysis, OTEC (TSE:1736) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,462.45, compared to a current price of 円2,427.00 — trading 66% above its estimated fair value. The current Return-on-Tangible-Asset is 16.74%, which is 226% above median its 10-year median of 5.13 and 286.2% above the Industrial Distribution industry median of 4.34. OTEC's overall GF Score™ is 73/100. 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 OTEC (TSE:1736), the current Return-on-Tangible-Asset is 16.74% 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 OTEC (TSE:1736) Overvalued in 2026?
Based on GuruFocus' analysis, OTEC stock appears to be overvalued.
The current stock price of 円2,427.00 is trading 66% above its estimated GF Value™ of 円1,462.45.
GuruFocus considers OTEC to be Significantly Overvalued.
Key valuation signals for TSE:1736:
Return-on-Tangible-Asset: 16.74% (226% above median its 10-year median of 5.13)
GF Value™: 円1,462.45 vs. price of 円2,427.00 (66% above fair value)
Industry Position: 286.2% above the Industrial Distribution median (#23 of 160)
No single metric tells the full story. See the TSE:1736 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
OTEC Corp operates as industrial distributor. The company is engaged in tubular materials business, system business, and environmental equipment business. The products of the company include tubing, fittings, valves, ball cleaning system, scale removal system, and cool roof.
73GF Score
Get the complete analysis for TSE:1736
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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