Kobe SteelKBSTF -7.05%74 Return-on-Tangible-Equity is 3.16% as of Mar. 2026, which is 61% below its 10-year median of 8.19. GuruFocus rates KBSTF with a GF Score™ of 74/100 and a GF Value™ of $10.59 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 619 Steel companies, Kobe Steel ranks better than 69.47% 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. Kobe Steel's annualized net income for the quarter that ended in Mar. 2026 was $237 Mil. Kobe Steel's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $7,494 Mil. Therefore, Kobe Steel's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 3.16%.
The historical rank and industry rank for Kobe Steel's Return-on-Tangible-Equity or its related term are showing as below:
KBSTF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -10.22 Med: 8.19 Max: 11.57
Current: 8.23
During the past 13 years, Kobe Steel's highest Return-on-Tangible-Equity was 11.57%. The lowest was -10.22%. And the median was 8.19%.
KBSTF's Return-on-Tangible-Equity is ranked better than 69.47% of 619
companies
in the Steel industry
Industry Median: 3.97
vs KBSTF: 8.23
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.
Kobe Steel Return-on-Tangible-Equity Related Terms
Kobe Steel Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Kobe Steel'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.
KBSTF vs NUE, STLD, RS: Return-on-Tangible-Equity Comparison
For the Steel subindustry, Kobe Steel'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.
Kobe Steel Return-on-Tangible-Equity vs Steel Industry
For the Steel industry and Basic Materials sector, Kobe Steel's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kobe Steel'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 3.16% mean?
Kobe Steel (KBSTF) has a Return-on-Tangible-Equity of 3.16% 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 Kobe Steel and its competitors. This is 61% below median its historical median of 8.19. According to the industry distribution chart, Kobe Steel ranks #189 out of 619 companies in the Steel industry, placing it in the top 30.5%.
Is Kobe Steel's Return-on-Tangible-Equity too high?
Kobe Steel's current Return-on-Tangible-Equity of 3.16% is 61% below median its 10-year median of 8.19. The Steel industry median Return-on-Tangible-Equity is 3.97. Kobe Steel's value of 3.16% is 20.4% below this industry median. Based on the distribution chart, Kobe Steel ranks #189 out of 619 companies in the Steel industry, which is above the industry midpoint. Overall, Kobe Steel has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kobe Steel's Return-on-Tangible-Equity compare to NUE and STLD?
According to the Steel industry distribution chart, Kobe Steel ranks #189 out of 619 companies for Return-on-Tangible-Equity. This puts Kobe Steel in the upper half of its industry. The industry median Return-on-Tangible-Equity is 3.97. Kobe Steel's value of 3.16% is 20.4% below this benchmark. While the company's 10-year median is 8.19 vs. the industry median of 3.97, Kobe Steel 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 Steel company?
The median Return-on-Tangible-Equity among Steel companies is 3.97, based on 619 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. Kobe Steel's current Return-on-Tangible-Equity of 3.16% is 20.4% 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 Kobe Steel and its competitors. For the Steel industry, the median Return-on-Tangible-Equity is 3.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kobe Steel's current Return-on-Tangible-Equity is 3.16%, which is 61% below median its own 10-year median of 8.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kobe Steel stock overvalued right now?
Based on GuruFocus' analysis, Kobe Steel (KBSTF) is currently considered Modestly Overvalued. The stock's GF Value™ is $10.59, compared to a current price of $12.32 — trading 16.3% above its estimated fair value. The current Return-on-Tangible-Equity is 3.16%, which is 61% below median its 10-year median of 8.19 and 20.4% below the Steel industry median of 3.97. Kobe Steel's overall GF Score™ is 74/100 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 Kobe Steel (KBSTF), the current Return-on-Tangible-Equity is 3.16% 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 Kobe Steel (KBSTF) Overvalued in 2026?
Based on GuruFocus' analysis, Kobe Steel stock appears to be overvalued.
The current stock price of $12.32 is trading 16.3% above its estimated GF Value™ of $10.59.
GuruFocus considers Kobe Steel to be Modestly Overvalued.
Key valuation signals for KBSTF:
Return-on-Tangible-Equity: 3.16% (61% below median its 10-year median of 8.19)
GF Value™: $10.59 vs. price of $12.32 (16.3% above fair value)
Industry Position: 20.4% below the Steel median (#189 of 619)
No single metric tells the full story. See the KBSTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kobe Steel Ltd engages in the manufacture, production, and sale of iron and steel. The company operates through seven segments. The Construction Machinery segment offers excavators, cranes, loaders, and workboats. Electric Power supplies electricity through group companies. Engineering handles plants for steel, petrochemicals, nuclear, water, and waste treatment, along with civil engineering and transport systems. Machinery provides compressors, engines, refrigeration, heat pumps, chemical and rubber machinery, and specialty materials. Materials include steel, aluminum, titanium, copper, and forged products. Steel & Aluminum delivers rolled products, plates, wires, and special steels, while Welding covers electrodes, flux, robots, power sources, and related services.
74GF Score
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