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ARAYA INDUSTRIAL CoTSE:7305 -1.13%72 Return-on-Tangible-Asset is 2.76% as of Mar. 2026, which is 16% below its 10-year median of 3.28. GuruFocus rates TSE:7305 with a GF Score™ of 72/100 and a GF Value™ of 円2,374.02 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 635 Steel companies, ARAYA INDUSTRIAL Co ranks better than 55.75% 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. ARAYA INDUSTRIAL Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円1,596 Mil. ARAYA INDUSTRIAL Co's average total tangible assets for the quarter that ended in Mar. 2026 was 円57,898 Mil. Therefore, ARAYA INDUSTRIAL Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 2.76%.
The historical rank and industry rank for ARAYA INDUSTRIAL Co's Return-on-Tangible-Asset or its related term are showing as below:
TSE:7305'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.53 Med: 3.28 Max: 5.78
Current: 2.77
During the past 13 years, ARAYA INDUSTRIAL Co's highest Return-on-Tangible-Asset was 5.78%. The lowest was 1.53%. And the median was 3.28%.
TSE:7305's Return-on-Tangible-Asset is ranked better than 55.75% of 635
companies
in the Steel industry
Industry Median: 2.07
vs TSE:7305: 2.77
ARAYA INDUSTRIAL Co (TSE:7305) 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.
ARAYA INDUSTRIAL Co Return-on-Tangible-Asset Related Terms
ARAYA INDUSTRIAL Co Return-on-Tangible-Asset Historical Data
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The historical data trend for ARAYA INDUSTRIAL 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.
ARAYA INDUSTRIAL Co Return-on-Tangible-Asset Chart
TSE:7305 vs NUE, STLD, RS: Return-on-Tangible-Asset Comparison
For the Steel subindustry, ARAYA INDUSTRIAL 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.
ARAYA INDUSTRIAL Co Return-on-Tangible-Asset vs Steel Industry
For the Steel industry and Basic Materials sector, ARAYA INDUSTRIAL Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where ARAYA INDUSTRIAL 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 2.76% mean?
ARAYA INDUSTRIAL Co (TSE:7305) has a Return-on-Tangible-Asset of 2.76% 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 ARAYA INDUSTRIAL Co and its competitors. This is 16% below median its historical median of 3.28. Over the past decade, ARAYA INDUSTRIAL Co's Return-on-Tangible-Asset has ranged from 1.53 to 5.78. According to the industry distribution chart, ARAYA INDUSTRIAL Co ranks #281 out of 635 companies in the Steel industry, placing it in the top 44.3%.
Is ARAYA INDUSTRIAL Co's Return-on-Tangible-Asset too high?
ARAYA INDUSTRIAL Co's current Return-on-Tangible-Asset of 2.76% is 16% below median its 10-year median of 3.28. Over the past 10 years, this metric has ranged from a low of 1.53 to a high of 5.78. The Steel industry median Return-on-Tangible-Asset is 2.07. ARAYA INDUSTRIAL Co's value of 2.76% is 33.3% above this industry median. Based on the distribution chart, ARAYA INDUSTRIAL Co ranks #281 out of 635 companies in the Steel industry, which is above the industry midpoint. Overall, ARAYA INDUSTRIAL Co has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ARAYA INDUSTRIAL Co's Return-on-Tangible-Asset compare to NUE and STLD?
According to the Steel industry distribution chart, ARAYA INDUSTRIAL Co ranks #281 out of 635 companies for Return-on-Tangible-Asset. This puts ARAYA INDUSTRIAL Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.07. ARAYA INDUSTRIAL Co's value of 2.76% is 33.3% above this benchmark. Historically, ARAYA INDUSTRIAL Co's own Return-on-Tangible-Asset has ranged from 1.53 to 5.78 over the past decade. While the company's 10-year median is 3.28 vs. the industry median of 2.07, ARAYA INDUSTRIAL 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 Steel company?
The median Return-on-Tangible-Asset among Steel companies is 2.07, based on 635 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. ARAYA INDUSTRIAL Co's current Return-on-Tangible-Asset of 2.76% is 33.3% 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 ARAYA INDUSTRIAL Co and its competitors. For the Steel industry, the median Return-on-Tangible-Asset is 2.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARAYA INDUSTRIAL Co's current Return-on-Tangible-Asset is 2.76%, which is 16% below median its own 10-year median of 3.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARAYA INDUSTRIAL Co stock overvalued right now?
Based on GuruFocus' analysis, ARAYA INDUSTRIAL Co (TSE:7305) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,374.02, compared to a current price of 円2,624.00 — trading 10.5% above its estimated fair value. The current Return-on-Tangible-Asset is 2.76%, which is 16% below median its 10-year median of 3.28 and 33.3% above the Steel industry median of 2.07. ARAYA INDUSTRIAL Co's overall GF Score™ is 72/100 with 3 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 ARAYA INDUSTRIAL Co (TSE:7305), the current Return-on-Tangible-Asset is 2.76% 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 ARAYA INDUSTRIAL Co (TSE:7305) Overvalued in 2026?
Based on GuruFocus' analysis, ARAYA INDUSTRIAL Co stock appears to be overvalued.
The current stock price of 円2,624.00 is trading 10.5% above its estimated GF Value™ of 円2,374.02.
GuruFocus considers ARAYA INDUSTRIAL Co to be Modestly Overvalued.
Key valuation signals for TSE:7305:
Return-on-Tangible-Asset: 2.76% (16% below median its 10-year median of 3.28)
GF Value™: 円2,374.02 vs. price of 円2,624.00 (10.5% above fair value)
Industry Position: 33.3% above the Steel median (#281 of 635)
No single metric tells the full story. See the TSE:7305 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ARAYA INDUSTRIAL Co Ltd is engaged in the manufacturing and selling of high-quality, high-performance iron, stainless steel pipe and others by metal processing technology Roll Forming. Its product offering includes steel pipe, welfare equipment, rim for the bicycle, pipe cutting machine, pipe/sheet metal processing machine and other special purpose machines. The company's products are used in a wide range of fields including automobiles, motorcycles, bicycles, buildings, furniture, industrial machinery, welfare equipment, and logistics equipment.
72GF Score
Get the complete analysis for TSE:7305
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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