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Nihon FalcomTSE:3723 +0.52%67 Return-on-Tangible-Asset is 7.22% as of Mar. 2026, which is 39% below its 10-year median of 11.85. GuruFocus rates TSE:3723 with a GF Score™ of 67/100 and a GF Value™ of 円1,730.82 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 566 Interactive Media companies, Nihon Falcom ranks better than 82.16% 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. Nihon Falcom's annualizedNet Income for the quarter that ended in Mar. 2026 was 円811 Mil. Nihon Falcom's average total tangible assets for the quarter that ended in Mar. 2026 was 円11,235 Mil. Therefore, Nihon Falcom's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 7.22%.
The historical rank and industry rank for Nihon Falcom's Return-on-Tangible-Asset or its related term are showing as below:
TSE:3723'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 8.14 Med: 11.85 Max: 15.97
Current: 14.15
During the past 13 years, Nihon Falcom's highest Return-on-Tangible-Asset was 15.97%. The lowest was 8.14%. And the median was 11.85%.
TSE:3723's Return-on-Tangible-Asset is ranked better than 82.16% of 566
companies
in the Interactive Media industry
Industry Median: 0.6
vs TSE:3723: 14.15
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.
Nihon Falcom Return-on-Tangible-Asset Related Terms
Nihon Falcom Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Nihon Falcom'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:3723 vs NTES, EA, TTWO: Return-on-Tangible-Asset Comparison
For the Electronic Gaming & Multimedia subindustry, Nihon Falcom'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.
Nihon Falcom Return-on-Tangible-Asset vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Nihon Falcom's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Nihon Falcom'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 7.22% mean?
Nihon Falcom (TSE:3723) has a Return-on-Tangible-Asset of 7.22% 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 Nihon Falcom and its competitors. This is 39% below median its historical median of 11.85. Over the past decade, Nihon Falcom's Return-on-Tangible-Asset has ranged from 8.14 to 15.97. According to the industry distribution chart, Nihon Falcom ranks #101 out of 566 companies in the Interactive Media industry, placing it in the top 17.8%.
Is Nihon Falcom's Return-on-Tangible-Asset too high?
Nihon Falcom's current Return-on-Tangible-Asset of 7.22% is 39% below median its 10-year median of 11.85. Over the past 10 years, this metric has ranged from a low of 8.14 to a high of 15.97. The Interactive Media industry median Return-on-Tangible-Asset is 0.60. Nihon Falcom's value of 7.22% is 1103.3% above this industry median. Based on the distribution chart, Nihon Falcom ranks #101 out of 566 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Nihon Falcom has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Falcom's Return-on-Tangible-Asset compare to NTES and EA?
According to the Interactive Media industry distribution chart, Nihon Falcom ranks #101 out of 566 companies for Return-on-Tangible-Asset. This places Nihon Falcom in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 0.60. Nihon Falcom's value of 7.22% is 1103.3% above this benchmark. Historically, Nihon Falcom's own Return-on-Tangible-Asset has ranged from 8.14 to 15.97 over the past decade. While the company's 10-year median is 11.85 vs. the industry median of 0.60, Nihon Falcom 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 Interactive Media company?
The median Return-on-Tangible-Asset among Interactive Media companies is 0.60, based on 566 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. Nihon Falcom's current Return-on-Tangible-Asset of 7.22% is 1103.3% 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 Nihon Falcom and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Asset is 0.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Falcom's current Return-on-Tangible-Asset is 7.22%, which is 39% below median its own 10-year median of 11.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Falcom stock overvalued right now?
Based on GuruFocus' analysis, Nihon Falcom (TSE:3723) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,730.82, compared to a current price of 円2,714.00 — trading 56.8% above its estimated fair value. The current Return-on-Tangible-Asset is 7.22%, which is 39% below median its 10-year median of 11.85 and 1103.3% above the Interactive Media industry median of 0.60. Nihon Falcom's overall GF Score™ is 67/100 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 Nihon Falcom (TSE:3723), the current Return-on-Tangible-Asset is 7.22% 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 Nihon Falcom (TSE:3723) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Falcom stock appears to be overvalued.
The current stock price of 円2,714.00 is trading 56.8% above its estimated GF Value™ of 円1,730.82.
GuruFocus considers Nihon Falcom to be Significantly Overvalued.
Key valuation signals for TSE:3723:
Return-on-Tangible-Asset: 7.22% (39% below median its 10-year median of 11.85)
GF Value™: 円1,730.82 vs. price of 円2,714.00 (56.8% above fair value)
Industry Position: 1103.3% above the Interactive Media median (#101 of 566)
No single metric tells the full story. See the TSE:3723 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Falcom Corp is a Japan-based company engages in the development and sale of game software. It produces music titles/video titles; plans game software; sells game software and related products; and provides various licenses. It offers role-playing game software and Japanese version of overseas game software as well as home-use game software, among others.
67GF Score
Get the complete analysis for TSE:3723
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