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Japan EngineTSE:6016 -0.20%74 Return-on-Tangible-Asset is 9.66% as of Mar. 2026, which is 158% above its 10-year median of 3.74. GuruFocus rates TSE:6016 with a GF Score™ of 74/100 and a GF Value™ of 円5,804.15 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 3,074 Industrial Products companies, Japan Engine ranks better than 93.4% 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. Japan Engine's annualizedNet Income for the quarter that ended in Mar. 2026 was 円3,119 Mil. Japan Engine's average total tangible assets for the quarter that ended in Mar. 2026 was 円32,303 Mil. Therefore, Japan Engine's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 9.66%.
The historical rank and industry rank for Japan Engine's Return-on-Tangible-Asset or its related term are showing as below:
TSE:6016'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -4.18 Med: 3.74 Max: 15.01
Current: 14.58
During the past 13 years, Japan Engine's highest Return-on-Tangible-Asset was 15.01%. The lowest was -4.18%. And the median was 3.74%.
TSE:6016's Return-on-Tangible-Asset is ranked better than 93.4% of 3074
companies
in the Industrial Products industry
Industry Median: 3.25
vs TSE:6016: 14.58
Japan Engine (TSE:6016) 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.
Japan Engine Return-on-Tangible-Asset Related Terms
Japan Engine Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Japan Engine'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:6016 vs GEV, ETN, PH: Return-on-Tangible-Asset Comparison
For the Specialty Industrial Machinery subindustry, Japan Engine'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.
Japan Engine Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Japan Engine's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Japan Engine'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 9.66% mean?
Japan Engine (TSE:6016) has a Return-on-Tangible-Asset of 9.66% 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 Japan Engine and its competitors. This is 158% above median its historical median of 3.74. According to the industry distribution chart, Japan Engine ranks #203 out of 3074 companies in the Industrial Products industry, placing it in the top 6.6%.
Is Japan Engine's Return-on-Tangible-Asset too high?
Japan Engine's current Return-on-Tangible-Asset of 9.66% is 158% above median its 10-year median of 3.74. The Industrial Products industry median Return-on-Tangible-Asset is 3.25. Japan Engine's value of 9.66% is 197.2% above this industry median. Based on the distribution chart, Japan Engine ranks #203 out of 3074 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Engine has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Engine's Return-on-Tangible-Asset compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Japan Engine ranks #203 out of 3074 companies for Return-on-Tangible-Asset. This places Japan Engine in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.25. Japan Engine's value of 9.66% is 197.2% above this benchmark. While the company's 10-year median is 3.74 vs. the industry median of 3.25, Japan Engine 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 Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.25, based on 3,074 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. Japan Engine's current Return-on-Tangible-Asset of 9.66% is 197.2% 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 Japan Engine and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Engine's current Return-on-Tangible-Asset is 9.66%, which is 158% above median its own 10-year median of 3.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Engine stock overvalued right now?
Based on GuruFocus' analysis, Japan Engine (TSE:6016) is currently considered Significantly Overvalued. The stock's GF Value™ is 円5,804.15, compared to a current price of 円9,820.00 — trading 69.2% above its estimated fair value. The current Return-on-Tangible-Asset is 9.66%, which is 158% above median its 10-year median of 3.74 and 197.2% above the Industrial Products industry median of 3.25. Japan Engine's overall GF Score™ is 74/100 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 Japan Engine (TSE:6016), the current Return-on-Tangible-Asset is 9.66% 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 Japan Engine (TSE:6016) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Engine stock appears to be overvalued.
The current stock price of 円9,820.00 is trading 69.2% above its estimated GF Value™ of 円5,804.15.
GuruFocus considers Japan Engine to be Significantly Overvalued.
Key valuation signals for TSE:6016:
Return-on-Tangible-Asset: 9.66% (158% above median its 10-year median of 3.74)
GF Value™: 円5,804.15 vs. price of 円9,820.00 (69.2% above fair value)
Industry Position: 197.2% above the Industrial Products median (#203 of 3074)
No single metric tells the full story. See the TSE:6016 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Engine Corp is a Japanese company engaged in the production and sale of various types of UE diesel engines. It also manufactures machinery and equipment related to marine, factory automation and energy saving. The organization has a business presence in Japan and other countries.
74GF Score
Get the complete analysis for TSE:6016
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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