Harmonic Drive SystemsHSYDF +0.46%69 Return-on-Tangible-Equity is 5.03% as of Mar. 2026, which is 38% below its 10-year median of 8.13. GuruFocus rates HSYDF with a GF Score™ of 69/100 and a GF Value™ of $24.20 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 2,971 Industrial Products companies, Harmonic Drive Systems ranks worse than 67.59% 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. Harmonic Drive Systems's annualized net income for the quarter that ended in Mar. 2026 was $21.2 Mil. Harmonic Drive Systems's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $420.8 Mil. Therefore, Harmonic Drive Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 5.03%.
The historical rank and industry rank for Harmonic Drive Systems's Return-on-Tangible-Equity or its related term are showing as below:
HSYDF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -38.13 Med: 8.13 Max: 79.93
Current: 2.46
During the past 13 years, Harmonic Drive Systems's highest Return-on-Tangible-Equity was 79.93%. The lowest was -38.13%. And the median was 8.13%.
HSYDF's Return-on-Tangible-Equity is ranked worse than 67.59% of 2971
companies
in the Industrial Products industry
Industry Median: 6.74
vs HSYDF: 2.46
Harmonic Drive Systems (OTCPK:HSYDF) 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.
Harmonic Drive Systems Return-on-Tangible-Equity Related Terms
Harmonic Drive Systems Return-on-Tangible-Equity Historical Data
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The historical data trend for Harmonic Drive Systems'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.
Harmonic Drive Systems Return-on-Tangible-Equity Chart
HSYDF vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Harmonic Drive Systems'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.
Harmonic Drive Systems Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Harmonic Drive Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Harmonic Drive Systems'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 5.03% mean?
Harmonic Drive Systems (HSYDF) has a Return-on-Tangible-Equity of 5.03% 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 Harmonic Drive Systems and its competitors. This is 38% below median its historical median of 8.13. According to the industry distribution chart, Harmonic Drive Systems ranks #2008 out of 2971 companies in the Industrial Products industry, placing it in the top 67.6%.
Is Harmonic Drive Systems' Return-on-Tangible-Equity too high?
Harmonic Drive Systems' current Return-on-Tangible-Equity of 5.03% is 38% below median its 10-year median of 8.13. The Industrial Products industry median Return-on-Tangible-Equity is 6.74. Harmonic Drive Systems' value of 5.03% is 25.4% below this industry median. Based on the distribution chart, Harmonic Drive Systems ranks #2008 out of 2971 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Harmonic Drive Systems has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Harmonic Drive Systems' Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Harmonic Drive Systems ranks #2008 out of 2971 companies for Return-on-Tangible-Equity. This places Harmonic Drive Systems in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.74. Harmonic Drive Systems' value of 5.03% is 25.4% below this benchmark. While the company's 10-year median is 8.13 vs. the industry median of 6.74, Harmonic Drive Systems 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.74, based on 2,971 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. Harmonic Drive Systems's current Return-on-Tangible-Equity of 5.03% is 25.4% 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 Harmonic Drive Systems and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Harmonic Drive Systems's current Return-on-Tangible-Equity is 5.03%, which is 38% below median its own 10-year median of 8.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harmonic Drive Systems stock overvalued right now?
Based on GuruFocus' analysis, Harmonic Drive Systems (HSYDF) is currently considered Significantly Overvalued. The stock's GF Value™ is $24.20, compared to a current price of $45.08 — trading 86.3% above its estimated fair value. The current Return-on-Tangible-Equity is 5.03%, which is 38% below median its 10-year median of 8.13 and 25.4% below the Industrial Products industry median of 6.74. Harmonic Drive Systems' overall GF Score™ is 69/100 with 10 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 Harmonic Drive Systems (HSYDF), the current Return-on-Tangible-Equity is 5.03% 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 Harmonic Drive Systems (HSYDF) Overvalued in 2026?
Based on GuruFocus' analysis, Harmonic Drive Systems stock appears to be overvalued.
The current stock price of $45.08 is trading 86.3% above its estimated GF Value™ of $24.20.
GuruFocus considers Harmonic Drive Systems to be Significantly Overvalued.
Key valuation signals for HSYDF:
Return-on-Tangible-Equity: 5.03% (38% below median its 10-year median of 8.13)
GF Value™: $24.20 vs. price of $45.08 (86.3% above fair value)
Industry Position: 25.4% below the Industrial Products median (#2008 of 2971)
No single metric tells the full story. See the HSYDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harmonic Drive Systems manufactures and sells high-precision reduction gears (harmonic reducers) under the Harmonic Drive brand as well as other mechatronics products, including rotary actuators, linear actuators, and AC servo motors. The company also provides planetary gear speed reducers under the AccuDrive and Harmonic Planetary brands. Its products are used in industrial robots, semiconductor production equipment, and other high-precision equipment. HDS was founded in 1970 and is headquartered in Tokyo, Japan.
69GF Score
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