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Nippon Densetsu Kogyo CoTSE:1950 +2.80%80 Return-on-Tangible-Asset is 12.98% as of Mar. 2026, which is 217% above its 10-year median of 4.10. GuruFocus rates TSE:1950 with a GF Score™ of 80/100 and a GF Value™ of 円2,741.22 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,781 Construction companies, Nippon Densetsu Kogyo Co ranks better than 70.47% 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 Densetsu Kogyo Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円40,528 Mil. Nippon Densetsu Kogyo Co's average total tangible assets for the quarter that ended in Mar. 2026 was 円312,165 Mil. Therefore, Nippon Densetsu Kogyo Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 12.98%.
The historical rank and industry rank for Nippon Densetsu Kogyo Co's Return-on-Tangible-Asset or its related term are showing as below:
TSE:1950'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.02 Med: 4.1 Max: 6.32
Current: 6.32
During the past 13 years, Nippon Densetsu Kogyo Co's highest Return-on-Tangible-Asset was 6.32%. The lowest was 2.02%. And the median was 4.10%.
TSE:1950's Return-on-Tangible-Asset is ranked better than 70.47% of 1781
companies
in the Construction industry
Industry Median: 3.05
vs TSE:1950: 6.32
Nippon Densetsu Kogyo Co (TSE:1950) 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 Densetsu Kogyo Co Return-on-Tangible-Asset Related Terms
Nippon Densetsu Kogyo Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Nippon Densetsu Kogyo 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.
Nippon Densetsu Kogyo Co Return-on-Tangible-Asset Chart
Nippon Densetsu Kogyo Co Return-on-Tangible-Asset Competitor Comparison
For the Infrastructure Operations subindustry, Nippon Densetsu Kogyo 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 Densetsu Kogyo Co Return-on-Tangible-Asset vs Construction Industry
For the Construction industry and Industrials sector, Nippon Densetsu Kogyo Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Nippon Densetsu Kogyo 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 12.98% mean?
Nippon Densetsu Kogyo Co (TSE:1950) has a Return-on-Tangible-Asset of 12.98% 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 Nippon Densetsu Kogyo Co and its competitors. This is 217% above median its historical median of 4.10. Over the past decade, Nippon Densetsu Kogyo Co's Return-on-Tangible-Asset has ranged from 2.02 to 6.32. According to the industry distribution chart, Nippon Densetsu Kogyo Co ranks #526 out of 1781 companies in the Construction industry, placing it in the top 29.5%.
Is Nippon Densetsu Kogyo Co's Return-on-Tangible-Asset too high?
Nippon Densetsu Kogyo Co's current Return-on-Tangible-Asset of 12.98% is 217% above median its 10-year median of 4.10. Over the past 10 years, this metric has ranged from a low of 2.02 to a high of 6.32. The Construction industry median Return-on-Tangible-Asset is 3.05. Nippon Densetsu Kogyo Co's value of 12.98% is 325.6% above this industry median. Based on the distribution chart, Nippon Densetsu Kogyo Co ranks #526 out of 1781 companies in the Construction industry, which is above the industry midpoint. Overall, Nippon Densetsu Kogyo Co has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Densetsu Kogyo Co's Return-on-Tangible-Asset compare to competitors?
According to the Construction industry distribution chart, Nippon Densetsu Kogyo Co ranks #526 out of 1781 companies for Return-on-Tangible-Asset. This puts Nippon Densetsu Kogyo Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.05. Nippon Densetsu Kogyo Co's value of 12.98% is 325.6% above this benchmark. Historically, Nippon Densetsu Kogyo Co's own Return-on-Tangible-Asset has ranged from 2.02 to 6.32 over the past decade. While the company's 10-year median is 4.10 vs. the industry median of 3.05, Nippon Densetsu Kogyo 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 3.05, based on 1,781 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 Densetsu Kogyo Co's current Return-on-Tangible-Asset of 12.98% is 325.6% 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 Densetsu Kogyo Co and its competitors. For the Construction industry, the median Return-on-Tangible-Asset is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Densetsu Kogyo Co's current Return-on-Tangible-Asset is 12.98%, which is 217% above median its own 10-year median of 4.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Densetsu Kogyo Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Densetsu Kogyo Co (TSE:1950) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,741.22, compared to a current price of 円4,040.00 — trading 47.4% above its estimated fair value. The current Return-on-Tangible-Asset is 12.98%, which is 217% above median its 10-year median of 4.10 and 325.6% above the Construction industry median of 3.05. Nippon Densetsu Kogyo Co's overall GF Score™ is 80/100 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 Nippon Densetsu Kogyo Co (TSE:1950), the current Return-on-Tangible-Asset is 12.98% 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 Nippon Densetsu Kogyo Co (TSE:1950) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Densetsu Kogyo Co stock appears to be overvalued.
The current stock price of 円4,040.00 is trading 47.4% above its estimated GF Value™ of 円2,741.22.
GuruFocus considers Nippon Densetsu Kogyo Co to be Significantly Overvalued.
Key valuation signals for TSE:1950:
Return-on-Tangible-Asset: 12.98% (217% above median its 10-year median of 4.10)
GF Value™: 円2,741.22 vs. price of 円4,040.00 (47.4% above fair value)
Industry Position: 325.6% above the Construction median (#526 of 1781)
No single metric tells the full story. See the TSE:1950 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Densetsu Kogyo Co Ltd is mainly engaged in equipment works. It is involved in railroad electrical works, such as electric train line, power generation and transformation, power transmission line, electric lamp and signal works; general electrical works, such as building electrical facility, air conditioning facility, water supply, and drainage, and sanitary equipment works, as well as information and telecommunication facility works.
80GF Score
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