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Muromachi ChemicalsTSE:4885 +0.23%78 Return-on-Tangible-Asset is 5.86% as of Feb. 2026, which is 36% above its 10-year median of 4.30. GuruFocus rates TSE:4885 with a GF Score™ of 78/100 and a GF Value™ of 円986.40 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,613 Chemicals companies, Muromachi Chemicals ranks worse than 54% 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. Muromachi Chemicals's annualizedNet Income for the quarter that ended in Feb. 2026 was 円375 Mil. Muromachi Chemicals's average total tangible assets for the quarter that ended in Feb. 2026 was 円6,400 Mil. Therefore, Muromachi Chemicals's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2026 was 5.86%.
The historical rank and industry rank for Muromachi Chemicals's Return-on-Tangible-Asset or its related term are showing as below:
TSE:4885'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.63 Med: 4.3 Max: 9.75
Current: 2.69
During the past 8 years, Muromachi Chemicals's highest Return-on-Tangible-Asset was 9.75%. The lowest was 0.63%. And the median was 4.30%.
TSE:4885's Return-on-Tangible-Asset is ranked worse than 54% of 1613
companies
in the Chemicals industry
Industry Median: 3.11
vs TSE:4885: 2.69
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.
Muromachi Chemicals Return-on-Tangible-Asset Related Terms
Muromachi Chemicals Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Muromachi Chemicals'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:4885 vs DOW: Return-on-Tangible-Asset Comparison
For the Chemicals subindustry, Muromachi Chemicals'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.
Muromachi Chemicals Return-on-Tangible-Asset vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Muromachi Chemicals's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Muromachi Chemicals'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 (Feb. 2026) net income data.
What does a Return-on-Tangible-Asset of 5.86% mean?
Muromachi Chemicals (TSE:4885) has a Return-on-Tangible-Asset of 5.86% 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 Muromachi Chemicals and its competitors. This is 36% above median its historical median of 4.30. Over the past decade, Muromachi Chemicals' Return-on-Tangible-Asset has ranged from 0.63 to 9.75. According to the industry distribution chart, Muromachi Chemicals ranks #871 out of 1613 companies in the Chemicals industry, placing it in the top 54%.
Is Muromachi Chemicals' Return-on-Tangible-Asset too high?
Muromachi Chemicals' current Return-on-Tangible-Asset of 5.86% is 36% above median its 10-year median of 4.30. Over the past 10 years, this metric has ranged from a low of 0.63 to a high of 9.75. The Chemicals industry median Return-on-Tangible-Asset is 3.11. Muromachi Chemicals' value of 5.86% is 88.4% above this industry median. Based on the distribution chart, Muromachi Chemicals ranks #871 out of 1613 companies in the Chemicals industry, which is below the industry midpoint. Overall, Muromachi Chemicals has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Muromachi Chemicals' Return-on-Tangible-Asset compare to DOW?
According to the Chemicals industry distribution chart, Muromachi Chemicals ranks #871 out of 1613 companies for Return-on-Tangible-Asset. This places Muromachi Chemicals in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.11. Muromachi Chemicals' value of 5.86% is 88.4% above this benchmark. Historically, Muromachi Chemicals' own Return-on-Tangible-Asset has ranged from 0.63 to 9.75 over the past decade. While the company's 10-year median is 4.30 vs. the industry median of 3.11, Muromachi Chemicals 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 Chemicals company?
The median Return-on-Tangible-Asset among Chemicals companies is 3.11, based on 1,613 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. Muromachi Chemicals's current Return-on-Tangible-Asset of 5.86% is 88.4% 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 Muromachi Chemicals and its competitors. For the Chemicals industry, the median Return-on-Tangible-Asset is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muromachi Chemicals's current Return-on-Tangible-Asset is 5.86%, which is 36% above median its own 10-year median of 4.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muromachi Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Muromachi Chemicals (TSE:4885) is currently considered Modestly Undervalued. The stock's GF Value™ is 円986.40, compared to a current price of 円882.00 — trading 10.6% below its estimated fair value. The current Return-on-Tangible-Asset is 5.86%, which is 36% above median its 10-year median of 4.30 and 88.4% above the Chemicals industry median of 3.11. Muromachi Chemicals' overall GF Score™ is 78/100 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 Muromachi Chemicals (TSE:4885), the current Return-on-Tangible-Asset is 5.86% 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 Muromachi Chemicals (TSE:4885) Overvalued in 2026?
Based on GuruFocus' analysis, Muromachi Chemicals stock appears to be undervalued.
The current stock price of 円882.00 is trading 10.6% below its estimated GF Value™ of 円986.40.
GuruFocus considers Muromachi Chemicals to be Modestly Undervalued.
Key valuation signals for TSE:4885:
Return-on-Tangible-Asset: 5.86% (36% above median its 10-year median of 4.30)
GF Value™: 円986.40 vs. price of 円882.00 (10.6% below fair value)
Industry Position: 88.4% above the Chemicals median (#871 of 1613)
No single metric tells the full story. See the TSE:4885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muromachi Chemicals Inc is engaged in the production and distribution of pharmaceuticals, planning, production, and distribution of health foods, and distribution and processing of ion-exchange resin products. The Company has three reportable segments based on business type: Pharmaceuticals Business, Health Food Business, and Chemicals Business.
78GF Score
Get the complete analysis for TSE:4885
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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