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Sekisui HouseFRA:SPH1 +0.95%88 Return-on-Tangible-Equity is 12.03% as of Apr. 2026, which is 2% above its 10-year median of 11.75. GuruFocus rates FRA:SPH1 with a GF Score™ of 88/100 and a GF Value™ of €22.19. The stock has 3 warning signs investors should review. Among 94 Homebuilding & Construction companies, Sekisui House ranks better than 74.47% 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. Sekisui House's annualized net income for the quarter that ended in Apr. 2026 was €1,257 Mil. Sekisui House's average shareholder tangible equity for the quarter that ended in Apr. 2026 was €10,451 Mil. Therefore, Sekisui House's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 12.03%.
The historical rank and industry rank for Sekisui House's Return-on-Tangible-Equity or its related term are showing as below:
FRA:SPH1'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.67 Med: 11.75 Max: 14.38
Current: 14.38
During the past 13 years, Sekisui House's highest Return-on-Tangible-Equity was 14.38%. The lowest was 9.67%. And the median was 11.75%.
FRA:SPH1's Return-on-Tangible-Equity is ranked better than 74.47% of 94
companies
in the Homebuilding & Construction industry
Industry Median: 8.37
vs FRA:SPH1: 14.38
Sekisui House (FRA:SPH1) 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.
Sekisui House Return-on-Tangible-Equity Related Terms
Sekisui House Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sekisui House'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:SPH1 vs DHI, PHM, LEN: Return-on-Tangible-Equity Comparison
For the Residential Construction subindustry, Sekisui House'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.
Sekisui House Return-on-Tangible-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Sekisui House's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sekisui House'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 (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.03% mean?
Sekisui House (FRA:SPH1) has a Return-on-Tangible-Equity of 12.03% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sekisui House and its competitors. This is near median its historical median of 11.75. Over the past decade, Sekisui House's Return-on-Tangible-Equity has ranged from 9.67 to 14.38. According to the industry distribution chart, Sekisui House ranks #24 out of 94 companies in the Homebuilding & Construction industry, placing it in the top 25.5%.
Is Sekisui House's Return-on-Tangible-Equity too high?
Sekisui House's current Return-on-Tangible-Equity of 12.03% is near median its 10-year median of 11.75. Over the past 10 years, this metric has ranged from a low of 9.67 to a high of 14.38. The Homebuilding & Construction industry median Return-on-Tangible-Equity is 8.37. Sekisui House's value of 12.03% is 43.7% above this industry median. Based on the distribution chart, Sekisui House ranks #24 out of 94 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Sekisui House has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Sekisui House's Return-on-Tangible-Equity compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Sekisui House ranks #24 out of 94 companies for Return-on-Tangible-Equity. This puts Sekisui House in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.37. Sekisui House's value of 12.03% is 43.7% above this benchmark. Historically, Sekisui House's own Return-on-Tangible-Equity has ranged from 9.67 to 14.38 over the past decade. While the company's 10-year median is 11.75 vs. the industry median of 8.37, Sekisui House 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 Homebuilding & Construction company?
The median Return-on-Tangible-Equity among Homebuilding & Construction companies is 8.37, based on 94 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. Sekisui House's current Return-on-Tangible-Equity of 12.03% is 43.7% 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 Sekisui House and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Equity is 8.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sekisui House's current Return-on-Tangible-Equity is 12.03%, which is near median its own 10-year median of 11.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sekisui House stock overvalued right now?
Sekisui House (FRA:SPH1) has a current Return-on-Tangible-Equity of 12.03%. The stock's GF Value™ is €22.19, compared to a current price of €18.67 — trading 15.9% below its estimated fair value. The current Return-on-Tangible-Equity is 12.03%, which is near median its 10-year median of 11.75 and 43.7% above the Homebuilding & Construction industry median of 8.37. Sekisui House's overall GF Score™ is 88/100 with 3 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 Sekisui House (FRA:SPH1), the current Return-on-Tangible-Equity is 12.03% as of Apr. 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 Sekisui House (FRA:SPH1) Overvalued in 2026?
Based on GuruFocus' analysis, Sekisui House stock appears to be undervalued.
The current stock price of €18.67 is trading 15.9% below its estimated GF Value™ of €22.19.
Key valuation signals for FRA:SPH1:
Return-on-Tangible-Equity: 12.03% (near median its 10-year median of 11.75)
GF Value™: €22.19 vs. price of €18.67 (15.9% below fair value)
Industry Position: 43.7% above the Homebuilding & Construction median (#24 of 94)
No single metric tells the full story. See the FRA:SPH1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sekisui House Ltd company's activities includes equity-method affiliates, is involved in the Custom Detached Houses Business, Rental Housing and Commercial Buildings Business, Architectural/Civil Engineering Business, Rental Housing Management Business, Remodeling Business, Development Business, Overseas Business, and carries out related business activities. Segments includes Custom detached houses Business, Rental housing and commercial buildings Business, Architectural / Civil engineering Business, Rental housing management Business, Remodeling Business, Development Business, and Overseas Business of which majority of revenue comes from Rental housing and commercial buildings Business.
88GF Score
Get the complete analysis for FRA:SPH1
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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