NTT DOCOMOBUE:DCM 10 Return-on-Tangible-Equity is 17.47% as of Sep. 2020, which is 40% above its 10-year median of 12.45. GuruFocus rates BUE:DCM with a GF Score™ of 10/100. The stock has 5 warning signs investors should review.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. NTT DOCOMO's annualized net income for the quarter that ended in Sep. 2020 was ARS551,286.60 Mil. NTT DOCOMO's average shareholder tangible equity for the quarter that ended in Sep. 2020 was ARS3,156,242.95 Mil. Therefore, NTT DOCOMO's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2020 was 17.47%.
The historical rank and industry rank for NTT DOCOMO's Return-on-Tangible-Equity or its related term are showing as below:
BUE:DCM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.92 Med: 12.45 Max: 16.21
Current: 13.15
During the past 13 years, NTT DOCOMO's highest Return-on-Tangible-Equity was 16.21%. The lowest was 8.92%. And the median was 12.45%.
BUE:DCM's Return-on-Tangible-Equity is not ranked
in the Telecommunication Services industry.
Industry Median: 14.005
vs BUE:DCM: 13.15
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
NTT DOCOMO Return-on-Tangible-Equity Related Terms
NTT DOCOMO Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for NTT DOCOMO's Return-on-Tangible-Equity 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.
BUE:DCM vs VZ, T, TMUS: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, NTT DOCOMO's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
NTT DOCOMO Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, NTT DOCOMO's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where NTT DOCOMO's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Sep. 2020) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 17.47% mean?
NTT DOCOMO (BUE:DCM) has a Return-on-Tangible-Equity of 17.47% as of Sep. 2020. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on NTT DOCOMO and its competitors. This is 40% above median its historical median of 12.45. Over the past decade, NTT DOCOMO's Return-on-Tangible-Equity has ranged from 8.92 to 16.21.
Is NTT DOCOMO's Return-on-Tangible-Equity too high?
NTT DOCOMO's current Return-on-Tangible-Equity of 17.47% is 40% above median its 10-year median of 12.45. Over the past 10 years, this metric has ranged from a low of 8.92 to a high of 16.21. The Telecommunication Services industry median Return-on-Tangible-Equity is 14.01. NTT DOCOMO's value of 17.47% is 24.7% above this industry median. Overall, NTT DOCOMO has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does NTT DOCOMO's Return-on-Tangible-Equity compare to VZ and T?
NTT DOCOMO's Return-on-Tangible-Equity of 17.47% can be compared against companies in the Telecommunication Services industry. The industry median Return-on-Tangible-Equity is 14.01. NTT DOCOMO's value of 17.47% is 24.7% above this benchmark. Historically, NTT DOCOMO's own Return-on-Tangible-Equity has ranged from 8.92 to 16.21 over the past decade. While the company's 10-year median is 12.45 vs. the industry median of 14.01, NTT DOCOMO 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-Equity for a Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.01, based on 326 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NTT DOCOMO's current Return-on-Tangible-Equity of 17.47% is 24.7% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on NTT DOCOMO and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NTT DOCOMO's current Return-on-Tangible-Equity is 17.47%, which is 40% above median its own 10-year median of 12.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NTT DOCOMO stock overvalued right now?
NTT DOCOMO (BUE:DCM) has a current Return-on-Tangible-Equity of 17.47%. The current Return-on-Tangible-Equity is 17.47%, which is 40% above median its 10-year median of 12.45 and 24.7% above the Telecommunication Services industry median of 14.01. NTT DOCOMO's overall GF Score™ is 10/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For NTT DOCOMO (BUE:DCM), the current Return-on-Tangible-Equity is 17.47% as of Sep. 2020. 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.
NTT DoCoMo is Japan's largest wireless telephone operator. It has 78 million subscribers, leading to its market share of approximately 44%. The firm has been a technological leader, introducing wireless Internet access through its i-mode service in 1999, along with the ability to use a handset like a credit card. NTT DoCoMo also owns minority stakes in Philippine Long Distance Telephone, Hutchison Telecom Hong Kong Holdings, and other smaller phone companies. The firm's objective is to have the highest-quality network and customer service in Japan.
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