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Japan ExcellentFRA:81L +0.69%68 Return-on-Tangible-Equity is 5.82% as of Dec. 2025, which is 8% above its 10-year median of 5.41. GuruFocus rates FRA:81L with a GF Score™ of 68/100 and a GF Value™ of €672.78. The stock has 9 warning signs investors should review. Among 929 REITs companies, Japan Excellent ranks worse than 51.35% 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. Japan Excellent's annualized net income for the quarter that ended in Dec. 2025 was €47.7 Mil. Japan Excellent's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €818.8 Mil. Therefore, Japan Excellent's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 5.82%.
The historical rank and industry rank for Japan Excellent's Return-on-Tangible-Equity or its related term are showing as below:
FRA:81L'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.43 Med: 5.41 Max: 7.17
Current: 6.13
During the past 13 years, Japan Excellent's highest Return-on-Tangible-Equity was 7.17%. The lowest was 4.43%. And the median was 5.41%.
FRA:81L's Return-on-Tangible-Equity is ranked worse than 51.35% of 929
companies
in the REITs industry
Industry Median: 6.25
vs FRA:81L: 6.13
Japan Excellent (FRA:81L) 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.
Japan Excellent Return-on-Tangible-Equity Related Terms
Japan Excellent Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Japan Excellent'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:81L vs BXP, ARE, VNO: Return-on-Tangible-Equity Comparison
For the REIT - Office subindustry, Japan Excellent'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.
Japan Excellent Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Japan Excellent's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Japan Excellent'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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 5.82% mean?
Japan Excellent (FRA:81L) has a Return-on-Tangible-Equity of 5.82% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Japan Excellent and its competitors. This is near median its historical median of 5.41. Over the past decade, Japan Excellent's Return-on-Tangible-Equity has ranged from 4.43 to 7.17. According to the industry distribution chart, Japan Excellent ranks #477 out of 929 companies in the REITs industry, placing it in the top 51.3%.
Is Japan Excellent's Return-on-Tangible-Equity too high?
Japan Excellent's current Return-on-Tangible-Equity of 5.82% is near median its 10-year median of 5.41. Over the past 10 years, this metric has ranged from a low of 4.43 to a high of 7.17. The REITs industry median Return-on-Tangible-Equity is 6.25. Japan Excellent's value of 5.82% is 6.9% below this industry median. Based on the distribution chart, Japan Excellent ranks #477 out of 929 companies in the REITs industry, which is below the industry midpoint. Overall, Japan Excellent has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Japan Excellent's Return-on-Tangible-Equity compare to BXP and ARE?
According to the REITs industry distribution chart, Japan Excellent ranks #477 out of 929 companies for Return-on-Tangible-Equity. This places Japan Excellent in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.25. Japan Excellent's value of 5.82% is 6.9% below this benchmark. Historically, Japan Excellent's own Return-on-Tangible-Equity has ranged from 4.43 to 7.17 over the past decade. While the company's 10-year median is 5.41 vs. the industry median of 6.25, Japan Excellent has consistently been below 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 REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.25, based on 929 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. Japan Excellent's current Return-on-Tangible-Equity of 5.82% is 6.9% 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 Japan Excellent and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Excellent's current Return-on-Tangible-Equity is 5.82%, which is near median its own 10-year median of 5.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Excellent stock overvalued right now?
Japan Excellent (FRA:81L) has a current Return-on-Tangible-Equity of 5.82%. The stock's GF Value™ is €672.78, compared to a current price of €730.00 — trading 8.5% above its estimated fair value. The current Return-on-Tangible-Equity is 5.82%, which is near median its 10-year median of 5.41 and 6.9% below the REITs industry median of 6.25. Japan Excellent's overall GF Score™ is 68/100 with 9 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 Japan Excellent (FRA:81L), the current Return-on-Tangible-Equity is 5.82% 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 Japan Excellent (FRA:81L) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Excellent stock appears to be overvalued.
The current stock price of €730.00 is trading 8.5% above its estimated GF Value™ of €672.78.
Key valuation signals for FRA:81L:
Return-on-Tangible-Equity: 5.82% (near median its 10-year median of 5.41)
GF Value™: €672.78 vs. price of €730.00 (8.5% above fair value)
Industry Position: 6.9% below the REITs median (#477 of 929)
No single metric tells the full story. See the FRA:81L stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Excellent Inc is a real estate investment trust. It mainly invests in office buildings located in major metropolitan areas and pursues to create a portfolio that produces stable growth of income by acquiring properties. The company's portfolio of assets is managed by Japan Excellent Asset Management Co., Ltd.
68GF Score
Get the complete analysis for FRA:81L
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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