Kansai Paint CoFRA:KAP +2.78%84 Return-on-Tangible-Equity is 3.12% as of Mar. 2026, which is 70% below its 10-year median of 10.27. GuruFocus rates FRA:KAP with a GF Score™ of 84/100 and a GF Value™ of €14.44 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,566 Chemicals companies, Kansai Paint Co ranks better than 84.1% 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. Kansai Paint Co's annualized net income for the quarter that ended in Mar. 2026 was €36 Mil. Kansai Paint Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €1,159 Mil. Therefore, Kansai Paint Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 3.12%.
The historical rank and industry rank for Kansai Paint Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:KAP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.67 Med: 10.27 Max: 28.38
Current: 16.01
During the past 13 years, Kansai Paint Co's highest Return-on-Tangible-Equity was 28.38%. The lowest was 8.67%. And the median was 10.27%.
FRA:KAP's Return-on-Tangible-Equity is ranked better than 84.1% of 1566
companies
in the Chemicals industry
Industry Median: 5.69
vs FRA:KAP: 16.01
Kansai Paint Co (FRA:KAP) 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.
Kansai Paint Co Return-on-Tangible-Equity Related Terms
Kansai Paint Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Kansai Paint 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:KAP vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Kansai Paint 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.
Kansai Paint Co Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kansai Paint Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kansai Paint 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 3.12% mean?
Kansai Paint Co (FRA:KAP) has a Return-on-Tangible-Equity of 3.12% 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 Kansai Paint Co and its competitors. This is 70% below median its historical median of 10.27. Over the past decade, Kansai Paint Co's Return-on-Tangible-Equity has ranged from 8.67 to 28.38. According to the industry distribution chart, Kansai Paint Co ranks #249 out of 1566 companies in the Chemicals industry, placing it in the top 15.9%.
Is Kansai Paint Co's Return-on-Tangible-Equity too high?
Kansai Paint Co's current Return-on-Tangible-Equity of 3.12% is 70% below median its 10-year median of 10.27. Over the past 10 years, this metric has ranged from a low of 8.67 to a high of 28.38. The Chemicals industry median Return-on-Tangible-Equity is 5.69. Kansai Paint Co's value of 3.12% is 45.2% below this industry median. Based on the distribution chart, Kansai Paint Co ranks #249 out of 1566 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Kansai Paint Co has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kansai Paint Co's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Kansai Paint Co ranks #249 out of 1566 companies for Return-on-Tangible-Equity. This places Kansai Paint Co in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.69. Kansai Paint Co's value of 3.12% is 45.2% below this benchmark. Historically, Kansai Paint Co's own Return-on-Tangible-Equity has ranged from 8.67 to 28.38 over the past decade. While the company's 10-year median is 10.27 vs. the industry median of 5.69, Kansai Paint Co 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 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. Kansai Paint Co's current Return-on-Tangible-Equity of 3.12% is 45.2% 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 Kansai Paint 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. Kansai Paint Co's current Return-on-Tangible-Equity is 3.12%, which is 70% below median its own 10-year median of 10.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kansai Paint Co stock overvalued right now?
Based on GuruFocus' analysis, Kansai Paint Co (FRA:KAP) is currently considered Fairly Valued. The stock's GF Value™ is €14.44, compared to a current price of €14.80 — trading 2.5% above its estimated fair value. The current Return-on-Tangible-Equity is 3.12%, which is 70% below median its 10-year median of 10.27 and 45.2% below the Chemicals industry median of 5.69. Kansai Paint Co's overall GF Score™ is 84/100 with 7 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 Kansai Paint Co (FRA:KAP), the current Return-on-Tangible-Equity is 3.12% 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 Kansai Paint Co (FRA:KAP) Overvalued in 2026?
Based on GuruFocus' analysis, Kansai Paint Co stock appears to be overvalued.
The current stock price of €14.80 is trading 2.5% above its estimated GF Value™ of €14.44.
GuruFocus considers Kansai Paint Co to be Fairly Valued.
Key valuation signals for FRA:KAP:
Return-on-Tangible-Equity: 3.12% (70% below median its 10-year median of 10.27)
GF Value™: €14.44 vs. price of €14.80 (2.5% above fair value)
Industry Position: 45.2% below the Chemicals median (#249 of 1566)
No single metric tells the full story. See the FRA:KAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kansai Paint Co Ltd manufactures and sells a variety of coatings and paint products. The company sells five primary types of products: automotive coatings, automotive refinish coatings, decorative coatings, protection coatings, and industrial coatings. The firm's automotive coatings include clear coat paints, top coat paints, and primers. The industrial coatings include paint and coatings for bridges, roads, storage tanks, power plants, and manufacturing facilities. It markets its products mainly to the automotive, marine, and construction industries.
84GF Score
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