Nippon Signal CoFRA:F6N -0.42%66 Return-on-Tangible-Equity is 28.14% as of Mar. 2026, which is 368% above its 10-year median of 6.01. GuruFocus rates FRA:F6N with a GF Score™ of 66/100 and a GF Value™ of €6.98 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,969 Industrial Products companies, Nippon Signal Co ranks better than 67.4% 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. Nippon Signal Co's annualized net income for the quarter that ended in Mar. 2026 was €30,324 Mil. Nippon Signal Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €107,759 Mil. Therefore, Nippon Signal Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 28.14%.
The historical rank and industry rank for Nippon Signal Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:F6N'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.63 Med: 6.01 Max: 11.25
Current: 11.25
During the past 13 years, Nippon Signal Co's highest Return-on-Tangible-Equity was 11.25%. The lowest was 2.63%. And the median was 6.01%.
FRA:F6N's Return-on-Tangible-Equity is ranked better than 67.4% of 2969
companies
in the Industrial Products industry
Industry Median: 6.72
vs FRA:F6N: 11.25
Nippon Signal Co (FRA:F6N) 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.
Nippon Signal Co Return-on-Tangible-Equity Related Terms
Nippon Signal Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nippon Signal 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:F6N vs VRT, BE: Return-on-Tangible-Equity Comparison
For the Electrical Equipment & Parts subindustry, Nippon Signal 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.
Nippon Signal Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nippon Signal Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nippon Signal 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 28.14% mean?
Nippon Signal Co (FRA:F6N) has a Return-on-Tangible-Equity of 28.14% 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 Nippon Signal Co and its competitors. This is 368% above median its historical median of 6.01. Over the past decade, Nippon Signal Co's Return-on-Tangible-Equity has ranged from 2.63 to 11.25. According to the industry distribution chart, Nippon Signal Co ranks #968 out of 2969 companies in the Industrial Products industry, placing it in the top 32.6%.
Is Nippon Signal Co's Return-on-Tangible-Equity too high?
Nippon Signal Co's current Return-on-Tangible-Equity of 28.14% is 368% above median its 10-year median of 6.01. Over the past 10 years, this metric has ranged from a low of 2.63 to a high of 11.25. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Nippon Signal Co's value of 28.14% is 318.8% above this industry median. Based on the distribution chart, Nippon Signal Co ranks #968 out of 2969 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Nippon Signal Co has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Signal Co's Return-on-Tangible-Equity compare to VRT and BE?
According to the Industrial Products industry distribution chart, Nippon Signal Co ranks #968 out of 2969 companies for Return-on-Tangible-Equity. This puts Nippon Signal Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.72. Nippon Signal Co's value of 28.14% is 318.8% above this benchmark. Historically, Nippon Signal Co's own Return-on-Tangible-Equity has ranged from 2.63 to 11.25 over the past decade. While the company's 10-year median is 6.01 vs. the industry median of 6.72, Nippon Signal 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,969 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. Nippon Signal Co's current Return-on-Tangible-Equity of 28.14% is 318.8% 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 Nippon Signal Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Signal Co's current Return-on-Tangible-Equity is 28.14%, which is 368% above median its own 10-year median of 6.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Signal Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Signal Co (FRA:F6N) is currently considered Modestly Overvalued. The stock's GF Value™ is €6.98, compared to a current price of €8.52 — trading 22% above its estimated fair value. The current Return-on-Tangible-Equity is 28.14%, which is 368% above median its 10-year median of 6.01 and 318.8% above the Industrial Products industry median of 6.72. Nippon Signal Co's overall GF Score™ is 66/100 with 1 warning sign 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 Nippon Signal Co (FRA:F6N), the current Return-on-Tangible-Equity is 28.14% 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 Nippon Signal Co (FRA:F6N) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Signal Co stock appears to be overvalued.
The current stock price of €8.52 is trading 22% above its estimated GF Value™ of €6.98.
GuruFocus considers Nippon Signal Co to be Modestly Overvalued.
Key valuation signals for FRA:F6N:
Return-on-Tangible-Equity: 28.14% (368% above median its 10-year median of 6.01)
GF Value™: €6.98 vs. price of €8.52 (22% above fair value)
Industry Position: 318.8% above the Industrial Products median (#968 of 2969)
No single metric tells the full story. See the FRA:F6N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Signal Co Ltd is a Japanese technology company. Its products and services fall into the following categories: railway signal systems, traffic information systems, automatic fare collection, or AFR, systems, and parking information systems. The railway signal systems division provides automatic train supervision systems, relay interlocking equipment, level-crossing systems, and LED information boards. The traffic information systems division offers universal traffic management systems, local controllers, and LED traffic signal lights. The AFR system division offers comprehensive network systems to automate station operations. The parking information systems division offers car parking systems and bicycle lock systems.
66GF Score
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