Daiwa Securities GroupDSECF -0.97%69 Return-on-Tangible-Equity is 12.44% as of Mar. 2026, which is 38% above its 10-year median of 9.02. GuruFocus rates DSECF with a GF Score™ of 69/100 and a GF Value™ of $8.32 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 783 Capital Markets companies, Daiwa Securities Group ranks better than 64.62% on this metric.
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. Daiwa Securities Group's annualized net income for the quarter that ended in Mar. 2026 was $1,257 Mil. Daiwa Securities Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $10,101 Mil. Therefore, Daiwa Securities Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.44%.
The historical rank and industry rank for Daiwa Securities Group's Return-on-Tangible-Equity or its related term are showing as below:
DSECF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.01 Med: 9.02 Max: 11.39
Current: 11.39
During the past 13 years, Daiwa Securities Group's highest Return-on-Tangible-Equity was 11.39%. The lowest was 5.01%. And the median was 9.02%.
DSECF's Return-on-Tangible-Equity is ranked better than 64.62% of 783
companies
in the Capital Markets industry
Industry Median: 6.45
vs DSECF: 11.39
Daiwa Securities Group (OTCPK:DSECF) Return-on-Tangible-Equity Explanation
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.
Daiwa Securities Group Return-on-Tangible-Equity Related Terms
Daiwa Securities Group Return-on-Tangible-Equity Historical Data
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The historical data trend for Daiwa Securities Group'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.
Daiwa Securities Group Return-on-Tangible-Equity Chart
DSECF vs MS, GS, SCHW: Return-on-Tangible-Equity Comparison
For the Capital Markets subindustry, Daiwa Securities Group'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.
Daiwa Securities Group Return-on-Tangible-Equity vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Daiwa Securities Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Daiwa Securities Group'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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.44% mean?
Daiwa Securities Group (DSECF) has a Return-on-Tangible-Equity of 12.44% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Daiwa Securities Group and its competitors. This is 38% above median its historical median of 9.02. Over the past decade, Daiwa Securities Group's Return-on-Tangible-Equity has ranged from 5.01 to 11.39. According to the industry distribution chart, Daiwa Securities Group ranks #277 out of 783 companies in the Capital Markets industry, placing it in the top 35.4%.
Is Daiwa Securities Group's Return-on-Tangible-Equity too high?
Daiwa Securities Group's current Return-on-Tangible-Equity of 12.44% is 38% above median its 10-year median of 9.02. Over the past 10 years, this metric has ranged from a low of 5.01 to a high of 11.39. The Capital Markets industry median Return-on-Tangible-Equity is 6.45. Daiwa Securities Group's value of 12.44% is 92.9% above this industry median. Based on the distribution chart, Daiwa Securities Group ranks #277 out of 783 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Daiwa Securities Group has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daiwa Securities Group's Return-on-Tangible-Equity compare to MS and GS?
According to the Capital Markets industry distribution chart, Daiwa Securities Group ranks #277 out of 783 companies for Return-on-Tangible-Equity. This puts Daiwa Securities Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.45. Daiwa Securities Group's value of 12.44% is 92.9% above this benchmark. Historically, Daiwa Securities Group's own Return-on-Tangible-Equity has ranged from 5.01 to 11.39 over the past decade. While the company's 10-year median is 9.02 vs. the industry median of 6.45, Daiwa Securities Group 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 Capital Markets company?
The median Return-on-Tangible-Equity among Capital Markets companies is 6.45, based on 783 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. Daiwa Securities Group's current Return-on-Tangible-Equity of 12.44% is 92.9% 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 Daiwa Securities Group and its competitors. For the Capital Markets industry, the median Return-on-Tangible-Equity is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daiwa Securities Group's current Return-on-Tangible-Equity is 12.44%, which is 38% above median its own 10-year median of 9.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiwa Securities Group stock overvalued right now?
Based on GuruFocus' analysis, Daiwa Securities Group (DSECF) is currently considered Modestly Overvalued. The stock's GF Value™ is $8.32, compared to a current price of $9.69 — trading 16.4% above its estimated fair value. The current Return-on-Tangible-Equity is 12.44%, which is 38% above median its 10-year median of 9.02 and 92.9% above the Capital Markets industry median of 6.45. Daiwa Securities Group's overall GF Score™ is 69/100 with 4 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 Daiwa Securities Group (DSECF), the current Return-on-Tangible-Equity is 12.44% 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 Daiwa Securities Group (DSECF) Overvalued in 2026?
Based on GuruFocus' analysis, Daiwa Securities Group stock appears to be overvalued.
The current stock price of $9.69 is trading 16.4% above its estimated GF Value™ of $8.32.
GuruFocus considers Daiwa Securities Group to be Modestly Overvalued.
Key valuation signals for DSECF:
Return-on-Tangible-Equity: 12.44% (38% above median its 10-year median of 9.02)
GF Value™: $8.32 vs. price of $9.69 (16.4% above fair value)
Industry Position: 92.9% above the Capital Markets median (#277 of 783)
No single metric tells the full story. See the DSECF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daiwa Securities Group Inc is a Japan-based financial services company. The company operates through four segments. The Asset Management Division manages investment trusts, funds, and corporations across assets, including private equity, real estate, renewable energy, and infrastructure, while also offering advisory services to institutional investors in Japan and overseas. The Global Markets & Investment Banking Division handles sales and trading of securities, foreign exchange, and derivatives, and provides underwriting and M&A advisory. The Wealth Management Division serves individuals and private corporate clients with diverse financial products. Others include subsidiary management, information services, administration, and real estate leasing.
69GF Score
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