The historical rank and industry rank for Sumitomo Mitsui Construction Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:72S'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -36.28 Med: 13.11 Max: 35.9
Current: 30.49
During the past 13 years, Sumitomo Mitsui Construction Co's highest Return-on-Tangible-Equity was 35.90%. The lowest was -36.28%. And the median was 13.11%.
FRA:72S's Return-on-Tangible-Equity is not ranked
in the Conglomerates industry.
Industry Median: 7.48
vs FRA:72S: 30.49
Sumitomo Mitsui Construction Co (FRA:72S) 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.
Sumitomo Mitsui Construction Co Return-on-Tangible-Equity Related Terms
Sumitomo Mitsui Construction Co Return-on-Tangible-Equity Historical Data
* 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.
Sumitomo Mitsui Construction Co Return-on-Tangible-Equity Chart
FRA:72S vs HON, MMM: Return-on-Tangible-Equity Comparison
For the Conglomerates subindustry, Sumitomo Mitsui Construction Co'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.
Sumitomo Mitsui Construction Co Return-on-Tangible-Equity vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Sumitomo Mitsui Construction Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sumitomo Mitsui Construction Co'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. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.05% mean?
Sumitomo Mitsui Construction Co (FRA:72S) has a Return-on-Tangible-Equity of 13.05% as of Sep. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sumitomo Mitsui Construction Co and its competitors. This is near median its historical median of 13.11.
Is Sumitomo Mitsui Construction Co's Return-on-Tangible-Equity too high?
Sumitomo Mitsui Construction Co's current Return-on-Tangible-Equity of 13.05% is near median its 10-year median of 13.11. The Conglomerates industry median Return-on-Tangible-Equity is 7.48. Sumitomo Mitsui Construction Co's value of 13.05% is 74.5% above this industry median. Overall, Sumitomo Mitsui Construction Co has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Mitsui Construction Co's Return-on-Tangible-Equity compare to HON and MMM?
Sumitomo Mitsui Construction Co's Return-on-Tangible-Equity of 13.05% can be compared against companies in the Conglomerates industry. The industry median Return-on-Tangible-Equity is 7.48. Sumitomo Mitsui Construction Co's value of 13.05% is 74.5% above this benchmark. While the company's 10-year median is 13.11 vs. the industry median of 7.48, Sumitomo Mitsui Construction 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-Equity for a Conglomerates company?
The median Return-on-Tangible-Equity among Conglomerates companies is 7.48, based on 551 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. Sumitomo Mitsui Construction Co's current Return-on-Tangible-Equity of 13.05% is 74.5% 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 Sumitomo Mitsui Construction Co and its competitors. For the Conglomerates industry, the median Return-on-Tangible-Equity is 7.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Mitsui Construction Co's current Return-on-Tangible-Equity is 13.05%, which is near median its own 10-year median of 13.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Mitsui Construction Co stock overvalued right now?
Sumitomo Mitsui Construction Co (FRA:72S) has a current Return-on-Tangible-Equity of 13.05%. The stock's GF Value™ is €2.03, compared to a current price of €3.18 — trading 56.7% above its estimated fair value. The current Return-on-Tangible-Equity is 13.05%, which is near median its 10-year median of 13.11 and 74.5% above the Conglomerates industry median of 7.48. Sumitomo Mitsui Construction Co's overall GF Score™ is 13/100 with 10 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 Sumitomo Mitsui Construction Co (FRA:72S), the current Return-on-Tangible-Equity is 13.05% as of Sep. 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 Sumitomo Mitsui Construction Co (FRA:72S) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Mitsui Construction Co stock appears to be overvalued.
The current stock price of €3.18 is trading 56.7% above its estimated GF Value™ of €2.03.
Key valuation signals for FRA:72S:
Return-on-Tangible-Equity: 13.05% (near median its 10-year median of 13.11)
GF Value™: €2.03 vs. price of €3.18 (56.7% above fair value)
Industry Position: 74.5% above the Conglomerates median
No single metric tells the full story. See the FRA:72S stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Mitsui Construction Co Business Description
Sumitomo Mitsui Construction Co Ltd is a construction company based in Japan. The company is primarily engaged in designing, engineering and executing civil projects which mainly include skyscrapers and high-rise buildings. It uses various technologies, such as controllable wide wall column, inverted construction method, lead rubber isolator, flat lead plug rubber, and dustless shotcrete method to construct high rise buildings and tunnel branching. It also engages in real estate trading, leasing, and management services.
13GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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