Kumagai Gumi CoKMGGF 79 Return-on-Tangible-Equity is 17.34% as of Mar. 2026, which is 64% above its 10-year median of 10.60. GuruFocus rates KMGGF with a GF Score™ of 79/100 and a GF Value™ of $7.63 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,703 Construction companies, Kumagai Gumi Co ranks better than 59.48% 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. Kumagai Gumi Co's annualized net income for the quarter that ended in Mar. 2026 was $204 Mil. Kumagai Gumi Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,177 Mil. Therefore, Kumagai Gumi Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.34%.
The historical rank and industry rank for Kumagai Gumi Co's Return-on-Tangible-Equity or its related term are showing as below:
KMGGF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.73 Med: 10.6 Max: 22.77
Current: 11.05
During the past 13 years, Kumagai Gumi Co's highest Return-on-Tangible-Equity was 22.77%. The lowest was 4.73%. And the median was 10.60%.
KMGGF's Return-on-Tangible-Equity is ranked better than 59.48% of 1703
companies
in the Construction industry
Industry Median: 8.23
vs KMGGF: 11.05
Kumagai Gumi Co (OTCPK:KMGGF) 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.
Kumagai Gumi Co Return-on-Tangible-Equity Related Terms
Kumagai Gumi Co Return-on-Tangible-Equity Historical Data
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The historical data trend for Kumagai Gumi Co'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.
KMGGF vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Kumagai Gumi Co'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.
Kumagai Gumi Co Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Kumagai Gumi Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kumagai Gumi Co'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 17.34% mean?
Kumagai Gumi Co (KMGGF) has a Return-on-Tangible-Equity of 17.34% 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 Kumagai Gumi Co and its competitors. This is 64% above median its historical median of 10.60. Over the past decade, Kumagai Gumi Co's Return-on-Tangible-Equity has ranged from 4.73 to 22.77. According to the industry distribution chart, Kumagai Gumi Co ranks #690 out of 1703 companies in the Construction industry, placing it in the top 40.5%.
Is Kumagai Gumi Co's Return-on-Tangible-Equity too high?
Kumagai Gumi Co's current Return-on-Tangible-Equity of 17.34% is 64% above median its 10-year median of 10.60. Over the past 10 years, this metric has ranged from a low of 4.73 to a high of 22.77. The Construction industry median Return-on-Tangible-Equity is 8.23. Kumagai Gumi Co's value of 17.34% is 110.7% above this industry median. Based on the distribution chart, Kumagai Gumi Co ranks #690 out of 1703 companies in the Construction industry, which is above the industry midpoint. Overall, Kumagai Gumi Co has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kumagai Gumi Co's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Kumagai Gumi Co ranks #690 out of 1703 companies for Return-on-Tangible-Equity. This puts Kumagai Gumi Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.23. Kumagai Gumi Co's value of 17.34% is 110.7% above this benchmark. Historically, Kumagai Gumi Co's own Return-on-Tangible-Equity has ranged from 4.73 to 22.77 over the past decade. While the company's 10-year median is 10.60 vs. the industry median of 8.23, Kumagai Gumi Co 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 8.23, based on 1,703 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. Kumagai Gumi Co's current Return-on-Tangible-Equity of 17.34% is 110.7% 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 Kumagai Gumi Co and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kumagai Gumi Co's current Return-on-Tangible-Equity is 17.34%, which is 64% above median its own 10-year median of 10.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kumagai Gumi Co stock overvalued right now?
Based on GuruFocus' analysis, Kumagai Gumi Co (KMGGF) is currently considered Modestly Overvalued. The stock's GF Value™ is $7.63, compared to a current price of $8.70 — trading 14% above its estimated fair value. The current Return-on-Tangible-Equity is 17.34%, which is 64% above median its 10-year median of 10.60 and 110.7% above the Construction industry median of 8.23. Kumagai Gumi Co's overall GF Score™ is 79/100 with 5 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 Kumagai Gumi Co (KMGGF), the current Return-on-Tangible-Equity is 17.34% 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 Kumagai Gumi Co (KMGGF) Overvalued in 2026?
Based on GuruFocus' analysis, Kumagai Gumi Co stock appears to be overvalued.
The current stock price of $8.70 is trading 14% above its estimated GF Value™ of $7.63.
GuruFocus considers Kumagai Gumi Co to be Modestly Overvalued.
Key valuation signals for KMGGF:
Return-on-Tangible-Equity: 17.34% (64% above median its 10-year median of 10.60)
GF Value™: $7.63 vs. price of $8.70 (14% above fair value)
Industry Position: 110.7% above the Construction median (#690 of 1703)
No single metric tells the full story. See the KMGGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kumagai Gumi Co Ltd is a Japanese company that provides services in construction and civil engineering. The company analyzes, designs, and supervises complex construction projects. It also offers engineering and technical services throughout the construction process. These projects include roads, railways, airports, water systems, and other public facilities. In addition, the company is engaged in manufacturing and selling construction materials and machinery. Construction activities account for the majority of revenue. The company generates additional revenue from developing residential and commercial complexes and either operating the building or acting as a broker and selling the real estate.
79GF Score
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