Palemo Holdings Co (TSE:2778) Return-on-Tangible-Asset: 0.36% (As of Feb. 2026) — 88% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:2778 Palemo Holdings Co Ltd TSE:2778
53 GF Score
Price 円114.00
GF Value 円134.65
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Palemo Holdings Co Return-on-Tangible-Asset?

Palemo Holdings Co TSE:2778 53 Return-on-Tangible-Asset is 0.36% as of Feb. 2026, which is 88% below its 10-year median of 3.05. GuruFocus rates TSE:2778 with a GF Score™ of 53/100 and a GF Value™ of 円134.65 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,138 Retail - Cyclical companies, Palemo Holdings Co ranks worse than 65.2% 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. Palemo Holdings Co's annualized Net Income for the quarter that ended in Feb. 2026 was 円23 Mil. Palemo Holdings Co's average total tangible assets for the quarter that ended in Feb. 2026 was 円6,430 Mil. Therefore, Palemo Holdings Co's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2026 was 0.36%.

The historical rank and industry rank for Palemo Holdings Co's Return-on-Tangible-Asset or its related term are showing as below:

TSE:2778' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -17.57   Med: 3.05   Max: 8.89
Current: 0.89

During the past 13 years, Palemo Holdings Co's highest Return-on-Tangible-Asset was 8.89%. The lowest was -17.57%. And the median was 3.05%.

TSE:2778's Return-on-Tangible-Asset is ranked worse than
65.2% of 1138 companies
in the Retail - Cyclical industry
Industry Median: 3.01 vs TSE:2778: 0.89

Palemo Holdings Co  (TSE:2778) 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 company’s 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 company’s 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.


Palemo Holdings Co Return-on-Tangible-Asset Related Terms


Palemo Holdings Co Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for Palemo Holdings 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.

Palemo Holdings Co Return-on-Tangible-Asset Chart

Palemo Holdings Co Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only -14.66 6.30 4.82 -0.63 0.33

Palemo Holdings Co Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Feb25 May25 Aug25 Nov25 Feb26 May26
Return-on-Tangible-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.45 8.09 -5.69 0.36 0.79

TSE:2778 vs TJX, ROST, BURL: Return-on-Tangible-Asset Comparison

For the Apparel Retail subindustry, Palemo Holdings 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.


Palemo Holdings Co Return-on-Tangible-Asset vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Palemo Holdings Co's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Palemo Holdings Co's Return-on-Tangible-Asset falls into.


TSE:2778
53GF Score
Palemo Holdings Co Ltd TSE:2778
Return-on-Tangible-Asset is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Palemo Holdings Co Return-on-Tangible-Asset Calculation

Palemo Holdings Co's annualized Return-on-Tangible-Asset for the fiscal year that ended in Feb. 2026 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Feb. 2026 )  (A: Feb. 2025 )(A: Feb. 2026 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Feb. 2026 )  (A: Feb. 2025 )(A: Feb. 2026 )
=21.403/( (6845.026+5999.596)/ 2 )
=21.403/6422.311
=0.33 %

Palemo Holdings Co's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2026 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Feb. 2026 )  (Q: Nov. 2025 )(Q: Feb. 2026 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Feb. 2026 )  (Q: Nov. 2025 )(Q: Feb. 2026 )
=23/( (6861.001+5999.596)/ 2 )
=23/6430.2985
=0.36 %

* 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 (Feb. 2026) net income data.

What does a Return-on-Tangible-Asset of 0.36% mean?
Palemo Holdings Co (TSE:2778) has a Return-on-Tangible-Asset of 0.36% as of Feb. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Palemo Holdings Co and its competitors. This is 88% below median its historical median of 3.05. According to the industry distribution chart, Palemo Holdings Co ranks #742 out of 1138 companies in the Retail - Cyclical industry, placing it in the top 65.2%.
Is Palemo Holdings Co's Return-on-Tangible-Asset too high?
Palemo Holdings Co's current Return-on-Tangible-Asset of 0.36% is 88% below median its 10-year median of 3.05. The Retail - Cyclical industry median Return-on-Tangible-Asset is 3.01. Palemo Holdings Co's value of 0.36% is 88% below this industry median. Based on the distribution chart, Palemo Holdings Co ranks #742 out of 1138 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Palemo Holdings Co has a GF Score™ of 53/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Palemo Holdings Co's Return-on-Tangible-Asset compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Palemo Holdings Co ranks #742 out of 1138 companies for Return-on-Tangible-Asset. This places Palemo Holdings Co in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.01. Palemo Holdings Co's value of 0.36% is 88% below this benchmark. While the company's 10-year median is 3.05 vs. the industry median of 3.01, Palemo Holdings Co has consistently been below 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 Retail - Cyclical company?
The median Return-on-Tangible-Asset among Retail - Cyclical companies is 3.01, based on 1,138 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. Palemo Holdings Co's current Return-on-Tangible-Asset of 0.36% is 88% below 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 Palemo Holdings Co and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Asset is 3.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palemo Holdings Co's current Return-on-Tangible-Asset is 0.36%, which is 88% below median its own 10-year median of 3.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palemo Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Palemo Holdings Co (TSE:2778) is currently considered Modestly Undervalued. The stock's GF Value™ is 円134.65, compared to a current price of 円114.00 — trading 15.3% below its estimated fair value. The current Return-on-Tangible-Asset is 0.36%, which is 88% below median its 10-year median of 3.05 and 88% below the Retail - Cyclical industry median of 3.01. Palemo Holdings Co's overall GF Score™ is 53/100 with 2 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 Palemo Holdings Co (TSE:2778), the current Return-on-Tangible-Asset is 0.36% as of Feb. 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 Palemo Holdings Co (TSE:2778) Overvalued in 2026?

Based on GuruFocus' analysis, Palemo Holdings Co stock appears to be undervalued. The current stock price of 円114.00 is trading 15.3% below its estimated GF Value™ of 円134.65. GuruFocus considers Palemo Holdings Co to be Modestly Undervalued.

Key valuation signals for TSE:2778:

  • Return-on-Tangible-Asset: 0.36% (88% below median its 10-year median of 3.05)
  • GF Value™: 円134.65 vs. price of 円114.00 (15.3% below fair value)
  • GF Score™: 53/100 with 2 warning signs
  • Industry Position: 88% below the Retail - Cyclical median (#742 of 1138)

No single metric tells the full story. See the TSE:2778 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Palemo Holdings Co Business Description

Address 5-27-13 Meieki, 6th floor, Nishikibashi Building, Nakamura-ku, Nagoya, Aichi Prefecture, JPN, 450-0002
Palemo Holdings Co Ltd is a holding company based in Japan. The business of the company includes operating apparel stores for women, variety merchandise, and bag specialty store chain. The brands of the company include Palemo, Ludic park, Noemie, Hare no hi, Lilou de chouchou, Daisy Merry, and others.
53GF Score

Get the complete analysis for TSE:2778

Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円114.00
Price
円134.65
GF Value