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Nippon Gear CoTSE:6356 +0.31%71 Return-on-Tangible-Asset is 17.92% as of Mar. 2026, which is 284% above its 10-year median of 4.67. GuruFocus rates TSE:6356 with a GF Score™ of 71/100 and a GF Value™ of 円590.21 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,337 Vehicles & Parts companies, Nippon Gear Co ranks better than 90.95% 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. Nippon Gear Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円2,961 Mil. Nippon Gear Co's average total tangible assets for the quarter that ended in Mar. 2026 was 円16,523 Mil. Therefore, Nippon Gear Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 17.92%.
The historical rank and industry rank for Nippon Gear Co's Return-on-Tangible-Asset or its related term are showing as below:
TSE:6356'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.07 Med: 4.67 Max: 11.39
Current: 11.39
During the past 13 years, Nippon Gear Co's highest Return-on-Tangible-Asset was 11.39%. The lowest was 2.07%. And the median was 4.67%.
TSE:6356's Return-on-Tangible-Asset is ranked better than 90.95% of 1337
companies
in the Vehicles & Parts industry
Industry Median: 3.35
vs TSE:6356: 11.39
Nippon Gear Co (TSE:6356) 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.
Nippon Gear Co Return-on-Tangible-Asset Related Terms
Nippon Gear Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Nippon Gear 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:6356 vs ORLY, AZO, GPC: Return-on-Tangible-Asset Comparison
For the Auto Parts subindustry, Nippon Gear 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.
Nippon Gear Co Return-on-Tangible-Asset vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Nippon Gear Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Nippon Gear 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 four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 17.92% mean?
Nippon Gear Co (TSE:6356) has a Return-on-Tangible-Asset of 17.92% 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 Nippon Gear Co and its competitors. This is 284% above median its historical median of 4.67. Over the past decade, Nippon Gear Co's Return-on-Tangible-Asset has ranged from 2.07 to 11.39. According to the industry distribution chart, Nippon Gear Co ranks #121 out of 1337 companies in the Vehicles & Parts industry, placing it in the top 9.1%.
Is Nippon Gear Co's Return-on-Tangible-Asset too high?
Nippon Gear Co's current Return-on-Tangible-Asset of 17.92% is 284% above median its 10-year median of 4.67. Over the past 10 years, this metric has ranged from a low of 2.07 to a high of 11.39. The Vehicles & Parts industry median Return-on-Tangible-Asset is 3.35. Nippon Gear Co's value of 17.92% is 434.9% above this industry median. Based on the distribution chart, Nippon Gear Co ranks #121 out of 1337 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Gear Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Gear Co's Return-on-Tangible-Asset compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Nippon Gear Co ranks #121 out of 1337 companies for Return-on-Tangible-Asset. This places Nippon Gear Co in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.35. Nippon Gear Co's value of 17.92% is 434.9% above this benchmark. Historically, Nippon Gear Co's own Return-on-Tangible-Asset has ranged from 2.07 to 11.39 over the past decade. While the company's 10-year median is 4.67 vs. the industry median of 3.35, Nippon Gear 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 Vehicles & Parts company?
The median Return-on-Tangible-Asset among Vehicles & Parts companies is 3.35, based on 1,337 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. Nippon Gear Co's current Return-on-Tangible-Asset of 17.92% is 434.9% 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 Nippon Gear Co and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Asset is 3.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Gear Co's current Return-on-Tangible-Asset is 17.92%, which is 284% above median its own 10-year median of 4.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Gear Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Gear Co (TSE:6356) is currently considered Significantly Overvalued. The stock's GF Value™ is 円590.21, compared to a current price of 円1,303.00 — trading 120.8% above its estimated fair value. The current Return-on-Tangible-Asset is 17.92%, which is 284% above median its 10-year median of 4.67 and 434.9% above the Vehicles & Parts industry median of 3.35. Nippon Gear Co's overall GF Score™ is 71/100 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 Nippon Gear Co (TSE:6356), the current Return-on-Tangible-Asset is 17.92% 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 Nippon Gear Co (TSE:6356) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Gear Co stock appears to be overvalued.
The current stock price of 円1,303.00 is trading 120.8% above its estimated GF Value™ of 円590.21.
GuruFocus considers Nippon Gear Co to be Significantly Overvalued.
Key valuation signals for TSE:6356:
Return-on-Tangible-Asset: 17.92% (284% above median its 10-year median of 4.67)
GF Value™: 円590.21 vs. price of 円1,303.00 (120.8% above fair value)
Industry Position: 434.9% above the Vehicles & Parts median (#121 of 1337)
No single metric tells the full story. See the TSE:6356 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Gear Co Ltd is engaged in the design, production, and sale of valve actuators, high-speed gear drivers, mixers, screw jacks, monitoring equipment, data communication equipment, control equipment, and software. It offers valve actuators for a range of applications in petroleum, nuclear, generating plants, and water/sewer pipelines; jacks for use in lifting/lowering, inclines, pulling, opening/closing, adjustment, and holding; gear drives for power plant, chemical plant, wastewater treatment plant, and other applications; and gears for automotive, railroad, industrial machine, and other industries.
71GF Score
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