Hatsuho Shouji Co (TSE:7425) Return-on-Tangible-Asset: 4.07% (As of Dec. 2025) — 42% Above Median

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TSE:7425 Hatsuho Shouji Co Ltd TSE:7425
81 GF Score
Price 円1,175.00
GF Value 円874.85
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Hatsuho Shouji Co Return-on-Tangible-Asset?

Hatsuho Shouji Co TSE:7425 -2.49% 81 Return-on-Tangible-Asset is 4.07% as of Dec. 2025, which is 42% above its 10-year median of 2.87. GuruFocus rates TSE:7425 with a GF Score™ of 81/100 and a GF Value™ of 円874.85 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 635 Steel companies, Hatsuho Shouji Co ranks better than 67.56% 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. Hatsuho Shouji Co's annualized Net Income for the quarter that ended in Dec. 2025 was 円871 Mil. Hatsuho Shouji Co's average total tangible assets for the quarter that ended in Dec. 2025 was 円21,389 Mil. Therefore, Hatsuho Shouji Co's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 4.07%.

The historical rank and industry rank for Hatsuho Shouji Co's Return-on-Tangible-Asset or its related term are showing as below:

TSE:7425' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.17   Med: 2.87   Max: 4.53
Current: 3.88

During the past 13 years, Hatsuho Shouji Co's highest Return-on-Tangible-Asset was 4.53%. The lowest was 1.17%. And the median was 2.87%.

TSE:7425's Return-on-Tangible-Asset is ranked better than
67.56% of 635 companies
in the Steel industry
Industry Median: 2.07 vs TSE:7425: 3.88

Hatsuho Shouji Co  (TSE:7425) 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 company’s 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 company’s 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.


Hatsuho Shouji Co Return-on-Tangible-Asset Related Terms


Hatsuho Shouji Co Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for Hatsuho Shouji 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.

Hatsuho Shouji Co Return-on-Tangible-Asset Chart

Hatsuho Shouji Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.78 4.36 4.53 4.43 3.81

Hatsuho Shouji Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Return-on-Tangible-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.83 4.27 4.78 3.75 4.07

TSE:7425 vs NUE, STLD, RS: Return-on-Tangible-Asset Comparison

For the Steel subindustry, Hatsuho Shouji 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.


Hatsuho Shouji Co Return-on-Tangible-Asset vs Steel Industry

For the Steel industry and Basic Materials sector, Hatsuho Shouji Co's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Hatsuho Shouji Co's Return-on-Tangible-Asset falls into.


TSE:7425
81GF Score
Hatsuho Shouji Co Ltd TSE:7425
Return-on-Tangible-Asset is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hatsuho Shouji Co Return-on-Tangible-Asset Calculation

Hatsuho Shouji Co's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=831.658/( (21577.597+22108.407)/ 2 )
=831.658/21843.002
=3.81 %

Hatsuho Shouji Co's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=870.536/( (20668.971+22108.407)/ 2 )
=870.536/21388.689
=4.07 %

* 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 (Dec. 2025) net income data.

What does a Return-on-Tangible-Asset of 4.07% mean?
Hatsuho Shouji Co (TSE:7425) has a Return-on-Tangible-Asset of 4.07% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Hatsuho Shouji Co and its competitors. This is 42% above median its historical median of 2.87. Over the past decade, Hatsuho Shouji Co's Return-on-Tangible-Asset has ranged from 1.17 to 4.53. According to the industry distribution chart, Hatsuho Shouji Co ranks #206 out of 635 companies in the Steel industry, placing it in the top 32.4%.
Is Hatsuho Shouji Co's Return-on-Tangible-Asset too high?
Hatsuho Shouji Co's current Return-on-Tangible-Asset of 4.07% is 42% above median its 10-year median of 2.87. Over the past 10 years, this metric has ranged from a low of 1.17 to a high of 4.53. The Steel industry median Return-on-Tangible-Asset is 2.07. Hatsuho Shouji Co's value of 4.07% is 96.6% above this industry median. Based on the distribution chart, Hatsuho Shouji Co ranks #206 out of 635 companies in the Steel industry, which is above the industry midpoint. Overall, Hatsuho Shouji Co has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hatsuho Shouji Co's Return-on-Tangible-Asset compare to NUE and STLD?
According to the Steel industry distribution chart, Hatsuho Shouji Co ranks #206 out of 635 companies for Return-on-Tangible-Asset. This puts Hatsuho Shouji Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.07. Hatsuho Shouji Co's value of 4.07% is 96.6% above this benchmark. Historically, Hatsuho Shouji Co's own Return-on-Tangible-Asset has ranged from 1.17 to 4.53 over the past decade. While the company's 10-year median is 2.87 vs. the industry median of 2.07, Hatsuho Shouji 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. Hatsuho Shouji Co's current Return-on-Tangible-Asset of 4.07% is 96.6% 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 Hatsuho Shouji 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. Hatsuho Shouji Co's current Return-on-Tangible-Asset is 4.07%, which is 42% above median its own 10-year median of 2.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hatsuho Shouji Co stock overvalued right now?
Based on GuruFocus' analysis, Hatsuho Shouji Co (TSE:7425) is currently considered Significantly Overvalued. The stock's GF Value™ is 円874.85, compared to a current price of 円1,175.00 — trading 34.3% above its estimated fair value. The current Return-on-Tangible-Asset is 4.07%, which is 42% above median its 10-year median of 2.87 and 96.6% above the Steel industry median of 2.07. Hatsuho Shouji Co's overall GF Score™ is 81/100 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 Hatsuho Shouji Co (TSE:7425), the current Return-on-Tangible-Asset is 4.07% as of Dec. 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 Hatsuho Shouji Co (TSE:7425) Overvalued in 2026?

Based on GuruFocus' analysis, Hatsuho Shouji Co stock appears to be overvalued. The current stock price of 円1,175.00 is trading 34.3% above its estimated GF Value™ of 円874.85. GuruFocus considers Hatsuho Shouji Co to be Significantly Overvalued.

Key valuation signals for TSE:7425:

  • Return-on-Tangible-Asset: 4.07% (42% above median its 10-year median of 2.87)
  • GF Value™: 円874.85 vs. price of 円1,175.00 (34.3% above fair value)
  • GF Score™: 81/100 with 1 warning sign
  • Industry Position: 96.6% above the Steel median (#206 of 635)

No single metric tells the full story. See the TSE:7425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hatsuho Shouji Co Business Description

Address 2-14-21 Nishiki Naka-ku, Nagoya-city, Aichi, JPN, 460-0003
Hatsuho Shouji Co Ltd is a Japan-based company engages in the sale of secondary steel products and non-ferrous metals. Its products include light-weight steel frames, wire mesh for concrete, sheet rock, car ports, and other construction materials.
81GF Score

Get the complete analysis for TSE:7425

Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,175.00
Price
円874.85
GF Value