KajimaKAJMY +6.25%74 Return-on-Tangible-Equity is 16.28% as of Mar. 2026, which is 27% above its 10-year median of 12.78. GuruFocus rates KAJMY with a GF Score™ of 74/100 and a GF Value™ of $21.24 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,704 Construction companies, Kajima ranks better than 67.25% 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. Kajima's annualized net income for the quarter that ended in Mar. 2026 was $1,389 Mil. Kajima's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $8,533 Mil. Therefore, Kajima's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 16.28%.
The historical rank and industry rank for Kajima's Return-on-Tangible-Equity or its related term are showing as below:
KAJMY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.42 Med: 12.78 Max: 21.21
Current: 13.89
During the past 13 years, Kajima's highest Return-on-Tangible-Equity was 21.21%. The lowest was 10.42%. And the median was 12.78%.
KAJMY's Return-on-Tangible-Equity is ranked better than 67.25% of 1704
companies
in the Construction industry
Industry Median: 8.245
vs KAJMY: 13.89
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.
Kajima Return-on-Tangible-Equity Related Terms
Kajima Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Kajima'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.
KAJMY vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Kajima'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.
Kajima Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Kajima's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kajima'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 16.28% mean?
Kajima (KAJMY) has a Return-on-Tangible-Equity of 16.28% 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 Kajima and its competitors. This is 27% above median its historical median of 12.78. Over the past decade, Kajima's Return-on-Tangible-Equity has ranged from 10.42 to 21.21. According to the industry distribution chart, Kajima ranks #558 out of 1704 companies in the Construction industry, placing it in the top 32.7%.
Is Kajima's Return-on-Tangible-Equity too high?
Kajima's current Return-on-Tangible-Equity of 16.28% is 27% above median its 10-year median of 12.78. Over the past 10 years, this metric has ranged from a low of 10.42 to a high of 21.21. The Construction industry median Return-on-Tangible-Equity is 8.25. Kajima's value of 16.28% is 97.5% above this industry median. Based on the distribution chart, Kajima ranks #558 out of 1704 companies in the Construction industry, which is above the industry midpoint. Overall, Kajima has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kajima's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Kajima ranks #558 out of 1704 companies for Return-on-Tangible-Equity. This puts Kajima in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.25. Kajima's value of 16.28% is 97.5% above this benchmark. Historically, Kajima's own Return-on-Tangible-Equity has ranged from 10.42 to 21.21 over the past decade. While the company's 10-year median is 12.78 vs. the industry median of 8.25, Kajima 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.25, based on 1,704 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. Kajima's current Return-on-Tangible-Equity of 16.28% is 97.5% 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 Kajima and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kajima's current Return-on-Tangible-Equity is 16.28%, which is 27% above median its own 10-year median of 12.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kajima stock overvalued right now?
Based on GuruFocus' analysis, Kajima (KAJMY) is currently considered Significantly Overvalued. The stock's GF Value™ is $21.24, compared to a current price of $38.61 — trading 81.8% above its estimated fair value. The current Return-on-Tangible-Equity is 16.28%, which is 27% above median its 10-year median of 12.78 and 97.5% above the Construction industry median of 8.25. Kajima's overall GF Score™ is 74/100 with 1 warning sign 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 Kajima (KAJMY), the current Return-on-Tangible-Equity is 16.28% 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 Kajima (KAJMY) Overvalued in 2026?
Based on GuruFocus' analysis, Kajima stock appears to be overvalued.
The current stock price of $38.61 is trading 81.8% above its estimated GF Value™ of $21.24.
GuruFocus considers Kajima to be Significantly Overvalued.
Key valuation signals for KAJMY:
Return-on-Tangible-Equity: 16.28% (27% above median its 10-year median of 12.78)
GF Value™: $21.24 vs. price of $38.61 (81.8% above fair value)
Industry Position: 97.5% above the Construction median (#558 of 1704)
No single metric tells the full story. See the KAJMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kajima Corp provides civil engineering and project management for multiple industries. It works in multiple phases, from planning and development to maintenance and renovation. The company constructs skyscrapers, power plants, office buildings, and other large structures. It enters into contracts to complete construction work at the designated site and add the necessary improvements. The company has five reportable segments: civil engineering, building business, real estate development, and other domestic subsidiaries, and overseas subsidiaries. The company utilizes research and development for all segments and allows engineers to receive training and enhance expertise through various programs. Japan accounts for the majority of the total revenue.
74GF Score
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