Japan EngineKDCLF 60 Return-on-Tangible-Equity is 17.37% as of Mar. 2026, which is 69% above its 10-year median of 10.25. GuruFocus rates KDCLF with a GF Score™ of 60/100 and a GF Value™ of $34.01 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,977 Industrial Products companies, Japan Engine ranks better than 90.9% 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 Engine's annualized net income for the quarter that ended in Mar. 2026 was $19.7 Mil. Japan Engine's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $113.2 Mil. Therefore, Japan Engine's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.37%.
The historical rank and industry rank for Japan Engine's Return-on-Tangible-Equity or its related term are showing as below:
KDCLF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -10.28 Med: 10.25 Max: 37.1
Current: 29.58
During the past 13 years, Japan Engine's highest Return-on-Tangible-Equity was 37.10%. The lowest was -10.28%. And the median was 10.25%.
KDCLF's Return-on-Tangible-Equity is ranked better than 90.9% of 2977
companies
in the Industrial Products industry
Industry Median: 6.77
vs KDCLF: 29.58
Japan Engine (OTCPK:KDCLF) 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 Engine Return-on-Tangible-Equity Related Terms
Japan Engine Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Japan Engine'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.
KDCLF vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Japan Engine'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 Engine Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Japan Engine's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Japan Engine'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 17.37% mean?
Japan Engine (KDCLF) has a Return-on-Tangible-Equity of 17.37% 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 Engine and its competitors. This is 69% above median its historical median of 10.25. According to the industry distribution chart, Japan Engine ranks #271 out of 2977 companies in the Industrial Products industry, placing it in the top 9.1%.
Is Japan Engine's Return-on-Tangible-Equity too high?
Japan Engine's current Return-on-Tangible-Equity of 17.37% is 69% above median its 10-year median of 10.25. The Industrial Products industry median Return-on-Tangible-Equity is 6.77. Japan Engine's value of 17.37% is 156.6% above this industry median. Based on the distribution chart, Japan Engine ranks #271 out of 2977 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Engine has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Engine's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Japan Engine ranks #271 out of 2977 companies for Return-on-Tangible-Equity. This places Japan Engine in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.77. Japan Engine's value of 17.37% is 156.6% above this benchmark. While the company's 10-year median is 10.25 vs. the industry median of 6.77, Japan Engine 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.77, based on 2,977 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 Engine's current Return-on-Tangible-Equity of 17.37% is 156.6% 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 Engine and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Engine's current Return-on-Tangible-Equity is 17.37%, which is 69% above median its own 10-year median of 10.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Engine stock overvalued right now?
Based on GuruFocus' analysis, Japan Engine (KDCLF) is currently considered Significantly Overvalued. The stock's GF Value™ is $34.01, compared to a current price of $50.45 — trading 48.3% above its estimated fair value. The current Return-on-Tangible-Equity is 17.37%, which is 69% above median its 10-year median of 10.25 and 156.6% above the Industrial Products industry median of 6.77. Japan Engine's overall GF Score™ is 60/100 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 Japan Engine (KDCLF), the current Return-on-Tangible-Equity is 17.37% 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 Engine (KDCLF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Engine stock appears to be overvalued.
The current stock price of $50.45 is trading 48.3% above its estimated GF Value™ of $34.01.
GuruFocus considers Japan Engine to be Significantly Overvalued.
Key valuation signals for KDCLF:
Return-on-Tangible-Equity: 17.37% (69% above median its 10-year median of 10.25)
GF Value™: $34.01 vs. price of $50.45 (48.3% above fair value)
Industry Position: 156.6% above the Industrial Products median (#271 of 2977)
No single metric tells the full story. See the KDCLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Engine Corp is a Japanese company engaged in the production and sale of various types of UE diesel engines. It also manufactures machinery and equipment related to marine, factory automation and energy saving. The organization has a business presence in Japan and other countries.
60GF Score
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