Japan TobaccoJAPAF 75 Return-on-Tangible-Equity is 103.76% as of Mar. 2026, which is 12% above its 10-year median of 92.76. GuruFocus rates JAPAF with a GF Score™ of 75/100 and a GF Value™ of $31.64 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 44 Tobacco Products companies, Japan Tobacco ranks better than 70.45% 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. Japan Tobacco's annualized net income for the quarter that ended in Mar. 2026 was $4,967 Mil. Japan Tobacco's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $4,787 Mil. Therefore, Japan Tobacco's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 103.76%.
The historical rank and industry rank for Japan Tobacco's Return-on-Tangible-Equity or its related term are showing as below:
JAPAF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 26 Med: 92.76 Max: 205.56
Current: 86.23
During the past 13 years, Japan Tobacco's highest Return-on-Tangible-Equity was 205.56%. The lowest was 26.00%. And the median was 92.76%.
JAPAF's Return-on-Tangible-Equity is ranked better than 70.45% of 44
companies
in the Tobacco Products industry
Industry Median: 25.395
vs JAPAF: 86.23
Japan Tobacco (OTCPK:JAPAF) 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.
Japan Tobacco Return-on-Tangible-Equity Related Terms
Japan Tobacco Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Japan Tobacco'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.
JAPAF vs PM, MO, TPB: Return-on-Tangible-Equity Comparison
For the Tobacco subindustry, Japan Tobacco'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.
Japan Tobacco Return-on-Tangible-Equity vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Japan Tobacco's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Japan Tobacco'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 103.76% mean?
Japan Tobacco (JAPAF) has a Return-on-Tangible-Equity of 103.76% 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 Japan Tobacco and its competitors. This is 12% above median its historical median of 92.76. Over the past decade, Japan Tobacco's Return-on-Tangible-Equity has ranged from 26.00 to 205.56. According to the industry distribution chart, Japan Tobacco ranks #13 out of 44 companies in the Tobacco Products industry, placing it in the top 29.5%.
Is Japan Tobacco's Return-on-Tangible-Equity too high?
Japan Tobacco's current Return-on-Tangible-Equity of 103.76% is 12% above median its 10-year median of 92.76. Over the past 10 years, this metric has ranged from a low of 26.00 to a high of 205.56. The Tobacco Products industry median Return-on-Tangible-Equity is 25.40. Japan Tobacco's value of 103.76% is 308.6% above this industry median. Based on the distribution chart, Japan Tobacco ranks #13 out of 44 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, Japan Tobacco has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Tobacco's Return-on-Tangible-Equity compare to PM and MO?
According to the Tobacco Products industry distribution chart, Japan Tobacco ranks #13 out of 44 companies for Return-on-Tangible-Equity. This puts Japan Tobacco in the upper half of its industry. The industry median Return-on-Tangible-Equity is 25.40. Japan Tobacco's value of 103.76% is 308.6% above this benchmark. Historically, Japan Tobacco's own Return-on-Tangible-Equity has ranged from 26.00 to 205.56 over the past decade. While the company's 10-year median is 92.76 vs. the industry median of 25.40, Japan Tobacco 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 Tobacco Products company?
The median Return-on-Tangible-Equity among Tobacco Products companies is 25.40, based on 44 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. Japan Tobacco's current Return-on-Tangible-Equity of 103.76% is 308.6% 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 Japan Tobacco and its competitors. For the Tobacco Products industry, the median Return-on-Tangible-Equity is 25.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Tobacco's current Return-on-Tangible-Equity is 103.76%, which is 12% above median its own 10-year median of 92.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Tobacco stock overvalued right now?
Based on GuruFocus' analysis, Japan Tobacco (JAPAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $31.64, compared to a current price of $37.74 — trading 19.3% above its estimated fair value. The current Return-on-Tangible-Equity is 103.76%, which is 12% above median its 10-year median of 92.76 and 308.6% above the Tobacco Products industry median of 25.40. Japan Tobacco's overall GF Score™ is 75/100 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 Japan Tobacco (JAPAF), the current Return-on-Tangible-Equity is 103.76% 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 Japan Tobacco (JAPAF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Tobacco stock appears to be overvalued.
The current stock price of $37.74 is trading 19.3% above its estimated GF Value™ of $31.64.
GuruFocus considers Japan Tobacco to be Modestly Overvalued.
Key valuation signals for JAPAF:
Return-on-Tangible-Equity: 103.76% (12% above median its 10-year median of 92.76)
GF Value™: $31.64 vs. price of $37.74 (19.3% above fair value)
Industry Position: 308.6% above the Tobacco Products median (#13 of 44)
No single metric tells the full story. See the JAPAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Tobacco primarily sells cigarettes and reduced-risk products, organized in three clusters consisting of Asia (which includes its home market and countries in Asia Pacific), Western Europe, and EMA (which includes Eastern Europe, the Middle East North Africa, Turkey, Americas, and duty-free). Its leading cigarette brands include Winston (non-US), Camel (non-US), Mevius, and LD. Its reduced-risk brands include Logic in vaping, Ploom in heated tobacco, and Nordic Spirit in nicotine pouches, though these generates less than 5% of tobacco sales.
75GF Score
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