Denka CoFRA:DIK -0.89%54 Return-on-Tangible-Equity is 13.54% as of Mar. 2026, which is 51% above its 10-year median of 8.99. GuruFocus rates FRA:DIK with a GF Score™ of 54/100 and a GF Value™ of €12.38 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 1,566 Chemicals companies, Denka Co ranks worse than 51.92% 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. Denka Co's annualized net income for the quarter that ended in Mar. 2026 was €222 Mil. Denka Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €1,636 Mil. Therefore, Denka Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.54%.
The historical rank and industry rank for Denka Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:DIK'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.13 Med: 8.99 Max: 10.9
Current: 5.33
During the past 13 years, Denka Co's highest Return-on-Tangible-Equity was 10.90%. The lowest was -4.13%. And the median was 8.99%.
FRA:DIK's Return-on-Tangible-Equity is ranked worse than 51.92% of 1566
companies
in the Chemicals industry
Industry Median: 5.69
vs FRA:DIK: 5.33
Denka Co (FRA:DIK) 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.
Denka Co Return-on-Tangible-Equity Related Terms
Denka Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Denka Co'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:DIK vs DOW: Return-on-Tangible-Equity Comparison
For the Chemicals subindustry, Denka 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.
Denka Co Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Denka Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Denka 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 (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 13.54% mean?
Denka Co (FRA:DIK) has a Return-on-Tangible-Equity of 13.54% 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 Denka Co and its competitors. This is 51% above median its historical median of 8.99. According to the industry distribution chart, Denka Co ranks #813 out of 1566 companies in the Chemicals industry, placing it in the top 51.9%.
Is Denka Co's Return-on-Tangible-Equity too high?
Denka Co's current Return-on-Tangible-Equity of 13.54% is 51% above median its 10-year median of 8.99. The Chemicals industry median Return-on-Tangible-Equity is 5.69. Denka Co's value of 13.54% is 138% above this industry median. Based on the distribution chart, Denka Co ranks #813 out of 1566 companies in the Chemicals industry, which is below the industry midpoint. Overall, Denka Co has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Denka Co's Return-on-Tangible-Equity compare to DOW?
According to the Chemicals industry distribution chart, Denka Co ranks #813 out of 1566 companies for Return-on-Tangible-Equity. This places Denka Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.69. Denka Co's value of 13.54% is 138% above this benchmark. While the company's 10-year median is 8.99 vs. the industry median of 5.69, Denka 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.69, based on 1,566 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. Denka Co's current Return-on-Tangible-Equity of 13.54% is 138% 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 Denka Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Denka Co's current Return-on-Tangible-Equity is 13.54%, which is 51% above median its own 10-year median of 8.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Denka Co stock overvalued right now?
Based on GuruFocus' analysis, Denka Co (FRA:DIK) is currently considered Significantly Overvalued. The stock's GF Value™ is €12.38, compared to a current price of €22.20 — trading 79.3% above its estimated fair value. The current Return-on-Tangible-Equity is 13.54%, which is 51% above median its 10-year median of 8.99 and 138% above the Chemicals industry median of 5.69. Denka Co's overall GF Score™ is 54/100 with 11 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 Denka Co (FRA:DIK), the current Return-on-Tangible-Equity is 13.54% 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 Denka Co (FRA:DIK) Overvalued in 2026?
Based on GuruFocus' analysis, Denka Co stock appears to be overvalued.
The current stock price of €22.20 is trading 79.3% above its estimated GF Value™ of €12.38.
GuruFocus considers Denka Co to be Significantly Overvalued.
Key valuation signals for FRA:DIK:
Return-on-Tangible-Equity: 13.54% (51% above median its 10-year median of 8.99)
GF Value™: €12.38 vs. price of €22.20 (79.3% above fair value)
Industry Position: 138% above the Chemicals median (#813 of 1566)
No single metric tells the full story. See the FRA:DIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Denka Co Ltd manufactures and sells chemicals, plastics, and chemical-based products. The firm organizes itself into four segments based on product type. The elastomers and performance plastics segment, which generates more revenue than any other segment, sells rubber products used by the automotive industry and plastics used to manufacture electronics including televisions. The infrastructure and social solutions segment sells cement and fertilizer to the construction and building industries. The electronics and innovative products segment sells film, and resins used by the electronics industry. The life science and environment products segment sells housing materials including rain gutters, plastic food packaging materials, and industrial materials including electrical tape.
54GF Score
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