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Hikari TsushinFRA:HIK -2.48%76 Return-on-Tangible-Equity is 13.50% as of Mar. 2026, which is 34% below its 10-year median of 20.54. GuruFocus rates FRA:HIK with a GF Score™ of 76/100 and a GF Value™ of €215.11 (Fairly Valued). The stock has 5 warning signs investors should review. Among 550 Conglomerates companies, Hikari Tsushin ranks better than 74.73% 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. Hikari Tsushin's annualized net income for the quarter that ended in Mar. 2026 was €836 Mil. Hikari Tsushin's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €6,194 Mil. Therefore, Hikari Tsushin's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.50%.
The historical rank and industry rank for Hikari Tsushin's Return-on-Tangible-Equity or its related term are showing as below:
FRA:HIK'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.19 Med: 20.54 Max: 28.48
Current: 14.74
During the past 13 years, Hikari Tsushin's highest Return-on-Tangible-Equity was 28.48%. The lowest was 14.19%. And the median was 20.54%.
FRA:HIK's Return-on-Tangible-Equity is ranked better than 74.73% of 550
companies
in the Conglomerates industry
Industry Median: 7.465
vs FRA:HIK: 14.74
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.
Hikari Tsushin Return-on-Tangible-Equity Related Terms
Hikari Tsushin Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hikari Tsushin'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:HIK vs HON, MMM: Return-on-Tangible-Equity Comparison
For the Conglomerates subindustry, Hikari Tsushin'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.
Hikari Tsushin Return-on-Tangible-Equity vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hikari Tsushin's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hikari Tsushin'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 13.50% mean?
Hikari Tsushin (FRA:HIK) has a Return-on-Tangible-Equity of 13.50% 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 Hikari Tsushin and its competitors. This is 34% below median its historical median of 20.54. Over the past decade, Hikari Tsushin's Return-on-Tangible-Equity has ranged from 14.19 to 28.48. According to the industry distribution chart, Hikari Tsushin ranks #139 out of 550 companies in the Conglomerates industry, placing it in the top 25.3%.
Is Hikari Tsushin's Return-on-Tangible-Equity too high?
Hikari Tsushin's current Return-on-Tangible-Equity of 13.50% is 34% below median its 10-year median of 20.54. Over the past 10 years, this metric has ranged from a low of 14.19 to a high of 28.48. The Conglomerates industry median Return-on-Tangible-Equity is 7.47. Hikari Tsushin's value of 13.50% is 80.8% above this industry median. Based on the distribution chart, Hikari Tsushin ranks #139 out of 550 companies in the Conglomerates industry, which is above the industry midpoint. Overall, Hikari Tsushin has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hikari Tsushin's Return-on-Tangible-Equity compare to HON and MMM?
According to the Conglomerates industry distribution chart, Hikari Tsushin ranks #139 out of 550 companies for Return-on-Tangible-Equity. This puts Hikari Tsushin in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.47. Hikari Tsushin's value of 13.50% is 80.8% above this benchmark. Historically, Hikari Tsushin's own Return-on-Tangible-Equity has ranged from 14.19 to 28.48 over the past decade. While the company's 10-year median is 20.54 vs. the industry median of 7.47, Hikari Tsushin 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 7.47, based on 550 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. Hikari Tsushin's current Return-on-Tangible-Equity of 13.50% is 80.8% 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 Hikari Tsushin and its competitors. For the Conglomerates industry, the median Return-on-Tangible-Equity is 7.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Tsushin's current Return-on-Tangible-Equity is 13.50%, which is 34% below median its own 10-year median of 20.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Tsushin stock overvalued right now?
Based on GuruFocus' analysis, Hikari Tsushin (FRA:HIK) is currently considered Fairly Valued. The stock's GF Value™ is €215.11, compared to a current price of €197.00 — trading 8.4% below its estimated fair value. The current Return-on-Tangible-Equity is 13.50%, which is 34% below median its 10-year median of 20.54 and 80.8% above the Conglomerates industry median of 7.47. Hikari Tsushin's overall GF Score™ is 76/100 with 5 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 Hikari Tsushin (FRA:HIK), the current Return-on-Tangible-Equity is 13.50% 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 Hikari Tsushin (FRA:HIK) Overvalued in 2026?
Based on GuruFocus' analysis, Hikari Tsushin stock appears to be undervalued.
The current stock price of €197.00 is trading 8.4% below its estimated GF Value™ of €215.11.
GuruFocus considers Hikari Tsushin to be Fairly Valued.
Key valuation signals for FRA:HIK:
Return-on-Tangible-Equity: 13.50% (34% below median its 10-year median of 20.54)
GF Value™: €215.11 vs. price of €197.00 (8.4% below fair value)
Industry Position: 80.8% above the Conglomerates median (#139 of 550)
No single metric tells the full story. See the FRA:HIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hikari Tsushin Inc operates as a holding company engaged in diversified businesses through seven segments: Electricity and Gas, Telecommunications, Beverages, Insurance, Finance, Solutions, and Agency Sales. The group provides electricity and gas supply, communication services, natural mineral water, non-life insurance, and warranty services, as well as financial services such as microfinance, industry-specific solution platforms, and agency sales of various products from telecommunications carriers and manufacturers. It generates the majority of its revenue from the Electricity and Gas segment.
76GF Score
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