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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. Shima Seiki Mfg's annualized net income for the quarter that ended in Mar. 2026 was €10.1 Mil. Shima Seiki Mfg's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €447.1 Mil. Therefore, Shima Seiki Mfg's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 2.26%.
The historical rank and industry rank for Shima Seiki Mfg's Return-on-Tangible-Equity or its related term are showing as below:
FRA:2ME'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -18.54 Med: -1.53 Max: 10.23
Current: 1.08
During the past 13 years, Shima Seiki Mfg's highest Return-on-Tangible-Equity was 10.23%. The lowest was -18.54%. And the median was -1.53%.
FRA:2ME's Return-on-Tangible-Equity is ranked worse than 72.76% of 2970
companies
in the Industrial Products industry
Industry Median: 6.725
vs FRA:2ME: 1.08
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.
Shima Seiki Mfg Return-on-Tangible-Equity Related Terms
Shima Seiki Mfg Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Shima Seiki Mfg'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.
FRA:2ME vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Shima Seiki Mfg'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.
Shima Seiki Mfg Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shima Seiki Mfg's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Shima Seiki Mfg'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 2.26% mean?
Shima Seiki Mfg (FRA:2ME) has a Return-on-Tangible-Equity of 2.26% 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 Shima Seiki Mfg and its competitors. According to the industry distribution chart, Shima Seiki Mfg ranks #2161 out of 2970 companies in the Industrial Products industry, placing it in the top 72.8%.
Is Shima Seiki Mfg's Return-on-Tangible-Equity too high?
Shima Seiki Mfg's current Return-on-Tangible-Equity is 2.26%. The Industrial Products industry median Return-on-Tangible-Equity is 6.73. Shima Seiki Mfg's value of 2.26% is 66.4% below this industry median. Based on the distribution chart, Shima Seiki Mfg ranks #2161 out of 2970 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Shima Seiki Mfg has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Shima Seiki Mfg's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shima Seiki Mfg ranks #2161 out of 2970 companies for Return-on-Tangible-Equity. This places Shima Seiki Mfg in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.73. Shima Seiki Mfg's value of 2.26% is 66.4% below this benchmark. 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.73, based on 2,970 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. Shima Seiki Mfg's current Return-on-Tangible-Equity of 2.26% is 66.4% below 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 Shima Seiki Mfg and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shima Seiki Mfg's current Return-on-Tangible-Equity is 2.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shima Seiki Mfg stock overvalued right now?
Shima Seiki Mfg (FRA:2ME) has a current Return-on-Tangible-Equity of 2.26%. The stock's GF Value™ is €6.45, compared to a current price of €4.75 — trading 26.3% below its estimated fair value. The current Return-on-Tangible-Equity is 2.26% and 66.4% below the Industrial Products industry median of 6.73. Shima Seiki Mfg's overall GF Score™ is 67/100 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 Shima Seiki Mfg (FRA:2ME), the current Return-on-Tangible-Equity is 2.26% 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 Shima Seiki Mfg (FRA:2ME) Overvalued in 2026?
Based on GuruFocus' analysis, Shima Seiki Mfg stock appears to be undervalued.
The current stock price of €4.75 is trading 26.3% below its estimated GF Value™ of €6.45.
Key valuation signals for FRA:2ME:
Return-on-Tangible-Equity: 2.26%
GF Value™: €6.45 vs. price of €4.75 (26.3% below fair value)
Industry Position: 66.4% below the Industrial Products median (#2161 of 2970)
No single metric tells the full story. See the FRA:2ME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shima Seiki Mfg Ltd is a Japan-based company that is engaged in developing, manufacturing, selling, and servicing computerized flat knitting machines, design systems, automatic fabric-cutting machines, and glove- and sock-knitting machines. The company's products are applied in apparel, knitting, weaving, printing, circular knitting, interior furnishings, automotive, aerospace, and other industrial materials. Flat knitting machines account for the majority of the company's sales. Shima Seiki generates most of its sales from Asia and Europe.
67GF Score
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