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Nippon Signal CoTSE:6741 +1.77%89 Return-on-Tangible-Asset is 18.31% as of Mar. 2026, which is 419% above its 10-year median of 3.53. GuruFocus rates TSE:6741 with a GF Score™ of 89/100 and a GF Value™ of 円1,299.55 (Modestly Overvalued). Among 3,078 Industrial Products companies, Nippon Signal Co ranks better than 74.66% 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 Signal Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円30,324 Mil. Nippon Signal Co's average total tangible assets for the quarter that ended in Mar. 2026 was 円165,627 Mil. Therefore, Nippon Signal Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 18.31%.
The historical rank and industry rank for Nippon Signal Co's Return-on-Tangible-Asset or its related term are showing as below:
TSE:6741'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.65 Med: 3.53 Max: 7.33
Current: 7.33
During the past 13 years, Nippon Signal Co's highest Return-on-Tangible-Asset was 7.33%. The lowest was 1.65%. And the median was 3.53%.
TSE:6741's Return-on-Tangible-Asset is ranked better than 74.66% of 3078
companies
in the Industrial Products industry
Industry Median: 3.26
vs TSE:6741: 7.33
Nippon Signal Co (TSE:6741) 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 Signal Co Return-on-Tangible-Asset Related Terms
Nippon Signal Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Nippon Signal 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:6741 vs VRT, BE: Return-on-Tangible-Asset Comparison
For the Electrical Equipment & Parts subindustry, Nippon Signal 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 Signal Co Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nippon Signal Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Nippon Signal 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 18.31% mean?
Nippon Signal Co (TSE:6741) has a Return-on-Tangible-Asset of 18.31% 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 Signal Co and its competitors. This is 419% above median its historical median of 3.53. Over the past decade, Nippon Signal Co's Return-on-Tangible-Asset has ranged from 1.65 to 7.33. According to the industry distribution chart, Nippon Signal Co ranks #780 out of 3078 companies in the Industrial Products industry, placing it in the top 25.3%.
Is Nippon Signal Co's Return-on-Tangible-Asset too high?
Nippon Signal Co's current Return-on-Tangible-Asset of 18.31% is 419% above median its 10-year median of 3.53. Over the past 10 years, this metric has ranged from a low of 1.65 to a high of 7.33. The Industrial Products industry median Return-on-Tangible-Asset is 3.26. Nippon Signal Co's value of 18.31% is 461.7% above this industry median. Based on the distribution chart, Nippon Signal Co ranks #780 out of 3078 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Nippon Signal Co has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Signal Co's Return-on-Tangible-Asset compare to VRT and BE?
According to the Industrial Products industry distribution chart, Nippon Signal Co ranks #780 out of 3078 companies for Return-on-Tangible-Asset. This puts Nippon Signal Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.26. Nippon Signal Co's value of 18.31% is 461.7% above this benchmark. Historically, Nippon Signal Co's own Return-on-Tangible-Asset has ranged from 1.65 to 7.33 over the past decade. While the company's 10-year median is 3.53 vs. the industry median of 3.26, Nippon Signal 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 an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.26, based on 3,078 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 Signal Co's current Return-on-Tangible-Asset of 18.31% is 461.7% 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 Nippon Signal Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Signal Co's current Return-on-Tangible-Asset is 18.31%, which is 419% above median its own 10-year median of 3.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Signal Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Signal Co (TSE:6741) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,299.55, compared to a current price of 円1,607.00 — trading 23.7% above its estimated fair value. The current Return-on-Tangible-Asset is 18.31%, which is 419% above median its 10-year median of 3.53 and 461.7% above the Industrial Products industry median of 3.26. Nippon Signal Co's overall GF Score™ is 89/100. 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 Signal Co (TSE:6741), the current Return-on-Tangible-Asset is 18.31% 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 Signal Co (TSE:6741) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Signal Co stock appears to be overvalued.
The current stock price of 円1,607.00 is trading 23.7% above its estimated GF Value™ of 円1,299.55.
GuruFocus considers Nippon Signal Co to be Modestly Overvalued.
Key valuation signals for TSE:6741:
Return-on-Tangible-Asset: 18.31% (419% above median its 10-year median of 3.53)
GF Value™: 円1,299.55 vs. price of 円1,607.00 (23.7% above fair value)
Industry Position: 461.7% above the Industrial Products median (#780 of 3078)
No single metric tells the full story. See the TSE:6741 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Signal Co Ltd is a Japanese technology company. Its products and services fall into the following categories: railway signal systems, traffic information systems, automatic fare collection, or AFR, systems, and parking information systems. The railway signal systems division provides automatic train supervision systems, relay interlocking equipment, level-crossing systems, and LED information boards. The traffic information systems division offers universal traffic management systems, local controllers, and LED traffic signal lights. The AFR system division offers comprehensive network systems to automate station operations. The parking information systems division offers car parking systems and bicycle lock systems.
89GF Score
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