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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.
Founder's Consultants Holdings Return-on-Tangible-Asset Related Terms
Founder's Consultants Holdings Return-on-Tangible-Asset Historical Data
* 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:6542 vs PWR, FIX, EME: Return-on-Tangible-Asset Comparison
For the Engineering & Construction subindustry, Founder's Consultants Holdings'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.
Founder's Consultants Holdings Return-on-Tangible-Asset vs Construction Industry
For the Construction industry and Industrials sector, Founder's Consultants Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Founder's Consultants Holdings'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 (Jun. 2025) net income data.
What does a Return-on-Tangible-Asset of 8.82% mean?
Founder's Consultants Holdings (TSE:6542) has a Return-on-Tangible-Asset of 8.82% as of Jun. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Founder's Consultants Holdings and its competitors. This is 12% above median its historical median of 7.86. Over the past decade, Founder's Consultants Holdings' Return-on-Tangible-Asset has ranged from 4.19 to 9.56.
Is Founder's Consultants Holdings' Return-on-Tangible-Asset too high?
Founder's Consultants Holdings' current Return-on-Tangible-Asset of 8.82% is 12% above median its 10-year median of 7.86. Over the past 10 years, this metric has ranged from a low of 4.19 to a high of 9.56. The Construction industry median Return-on-Tangible-Asset is 3.06. Founder's Consultants Holdings' value of 8.82% is 188.7% above this industry median. Overall, Founder's Consultants Holdings has a GF Score™ of 52/100, reflecting its overall financial health beyond just this single metric.
How does Founder's Consultants Holdings' Return-on-Tangible-Asset compare to PWR and FIX?
Founder's Consultants Holdings' Return-on-Tangible-Asset of 8.82% can be compared against companies in the Construction industry. The industry median Return-on-Tangible-Asset is 3.06. Founder's Consultants Holdings' value of 8.82% is 188.7% above this benchmark. Historically, Founder's Consultants Holdings' own Return-on-Tangible-Asset has ranged from 4.19 to 9.56 over the past decade. While the company's 10-year median is 7.86 vs. the industry median of 3.06, Founder's Consultants Holdings 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 Construction company?
The median Return-on-Tangible-Asset among Construction companies is 3.06, based on 1,786 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. Founder's Consultants Holdings's current Return-on-Tangible-Asset of 8.82% is 188.7% 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 Founder's Consultants Holdings and its competitors. For the Construction industry, the median Return-on-Tangible-Asset is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Founder's Consultants Holdings's current Return-on-Tangible-Asset is 8.82%, which is 12% above median its own 10-year median of 7.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Founder's Consultants Holdings stock overvalued right now?
Founder's Consultants Holdings (TSE:6542) has a current Return-on-Tangible-Asset of 8.82%. The stock's GF Value™ is 円827.27, compared to a current price of 円1,409.00 — trading 70.3% above its estimated fair value. The current Return-on-Tangible-Asset is 8.82%, which is 12% above median its 10-year median of 7.86 and 188.7% above the Construction industry median of 3.06. Founder's Consultants Holdings' overall GF Score™ is 52/100 with 5 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 Founder's Consultants Holdings (TSE:6542), the current Return-on-Tangible-Asset is 8.82% as of Jun. 2025. 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 Founder's Consultants Holdings (TSE:6542) Overvalued in 2026?
Based on GuruFocus' analysis, Founder's Consultants Holdings stock appears to be overvalued.
The current stock price of 円1,409.00 is trading 70.3% above its estimated GF Value™ of 円827.27.
Key valuation signals for TSE:6542:
Return-on-Tangible-Asset: 8.82% (12% above median its 10-year median of 7.86)
GF Value™: 円827.27 vs. price of 円1,409.00 (70.3% above fair value)
Industry Position: 188.7% above the Construction median
No single metric tells the full story. See the TSE:6542 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founder's Consultants Holdings Inc is a construction consultant providing survey for roads, bridges, and railways, among others. It also provides planning, designing, maintenance and construction management services. Geographically the business activities are carried out through Japan.
52GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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