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Nikko CoTSE:6306 -0.10%87 Return-on-Tangible-Asset is 5.90% as of Mar. 2026, which is 79% above its 10-year median of 3.29. GuruFocus rates TSE:6306 with a GF Score™ of 87/100 and a GF Value™ of 円836.61 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 212 Farm & Heavy Construction Machinery companies, Nikko Co ranks better than 52.36% 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. Nikko Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円3,684 Mil. Nikko Co's average total tangible assets for the quarter that ended in Mar. 2026 was 円62,467 Mil. Therefore, Nikko Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 5.90%.
The historical rank and industry rank for Nikko Co's Return-on-Tangible-Asset or its related term are showing as below:
TSE:6306'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2 Med: 3.29 Max: 4.46
Current: 4.06
During the past 13 years, Nikko Co's highest Return-on-Tangible-Asset was 4.46%. The lowest was 2.00%. And the median was 3.29%.
TSE:6306's Return-on-Tangible-Asset is ranked better than 52.36% of 212
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 3.925
vs TSE:6306: 4.06
Nikko Co (TSE:6306) 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.
Nikko Co Return-on-Tangible-Asset Related Terms
Nikko Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Nikko 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.
TSE:6306 vs CAT, DE, PCAR: Return-on-Tangible-Asset Comparison
For the Farm & Heavy Construction Machinery subindustry, Nikko 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.
Nikko Co Return-on-Tangible-Asset vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Nikko Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Nikko 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 two times the semi-annual (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 5.90% mean?
Nikko Co (TSE:6306) has a Return-on-Tangible-Asset of 5.90% 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 Nikko Co and its competitors. This is 79% above median its historical median of 3.29. Over the past decade, Nikko Co's Return-on-Tangible-Asset has ranged from 2.00 to 4.46. According to the industry distribution chart, Nikko Co ranks #101 out of 212 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 47.6%.
Is Nikko Co's Return-on-Tangible-Asset too high?
Nikko Co's current Return-on-Tangible-Asset of 5.90% is 79% above median its 10-year median of 3.29. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 4.46. The Farm & Heavy Construction Machinery industry median Return-on-Tangible-Asset is 3.93. Nikko Co's value of 5.90% is 50.3% above this industry median. Based on the distribution chart, Nikko Co ranks #101 out of 212 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Nikko Co has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nikko Co's Return-on-Tangible-Asset compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Nikko Co ranks #101 out of 212 companies for Return-on-Tangible-Asset. This puts Nikko Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.93. Nikko Co's value of 5.90% is 50.3% above this benchmark. Historically, Nikko Co's own Return-on-Tangible-Asset has ranged from 2.00 to 4.46 over the past decade. While the company's 10-year median is 3.29 vs. the industry median of 3.93, Nikko 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 Farm & Heavy Construction Machinery company?
The median Return-on-Tangible-Asset among Farm & Heavy Construction Machinery companies is 3.93, based on 212 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. Nikko Co's current Return-on-Tangible-Asset of 5.90% is 50.3% 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 Nikko Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median Return-on-Tangible-Asset is 3.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nikko Co's current Return-on-Tangible-Asset is 5.90%, which is 79% above median its own 10-year median of 3.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nikko Co stock overvalued right now?
Based on GuruFocus' analysis, Nikko Co (TSE:6306) is currently considered Modestly Overvalued. The stock's GF Value™ is 円836.61, compared to a current price of 円971.00 — trading 16.1% above its estimated fair value. The current Return-on-Tangible-Asset is 5.90%, which is 79% above median its 10-year median of 3.29 and 50.3% above the Farm & Heavy Construction Machinery industry median of 3.93. Nikko Co's overall GF Score™ is 87/100 with 7 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 Nikko Co (TSE:6306), the current Return-on-Tangible-Asset is 5.90% 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 Nikko Co (TSE:6306) Overvalued in 2026?
Based on GuruFocus' analysis, Nikko Co stock appears to be overvalued.
The current stock price of 円971.00 is trading 16.1% above its estimated GF Value™ of 円836.61.
GuruFocus considers Nikko Co to be Modestly Overvalued.
Key valuation signals for TSE:6306:
Return-on-Tangible-Asset: 5.90% (79% above median its 10-year median of 3.29)
GF Value™: 円836.61 vs. price of 円971.00 (16.1% above fair value)
Industry Position: 50.3% above the Farm & Heavy Construction Machinery median (#101 of 212)
No single metric tells the full story. See the TSE:6306 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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