Kawasaki Heavy IndustriesKWHIF -4.32%84 Return-on-Tangible-Equity is 22.02% as of Mar. 2026, which is 258% above its 10-year median of 6.15. GuruFocus rates KWHIF with a GF Score™ of 84/100 and a GF Value™ of $8.88 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 549 Conglomerates companies, Kawasaki Heavy Industries ranks better than 75.77% 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. Kawasaki Heavy Industries's annualized net income for the quarter that ended in Mar. 2026 was $1,066 Mil. Kawasaki Heavy Industries's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $4,842 Mil. Therefore, Kawasaki Heavy Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 22.02%.
The historical rank and industry rank for Kawasaki Heavy Industries's Return-on-Tangible-Equity or its related term are showing as below:
KWHIF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.41 Med: 6.15 Max: 15.46
Current: 15.46
During the past 13 years, Kawasaki Heavy Industries's highest Return-on-Tangible-Equity was 15.46%. The lowest was -4.41%. And the median was 6.15%.
KWHIF's Return-on-Tangible-Equity is ranked better than 75.77% of 549
companies
in the Conglomerates industry
Industry Median: 7.44
vs KWHIF: 15.46
Kawasaki Heavy Industries (OTCPK:KWHIF) 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.
Kawasaki Heavy Industries Return-on-Tangible-Equity Related Terms
Kawasaki Heavy Industries Return-on-Tangible-Equity Historical Data
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The historical data trend for Kawasaki Heavy Industries'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.
Kawasaki Heavy Industries Return-on-Tangible-Equity Chart
KWHIF vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Conglomerates subindustry, Kawasaki Heavy Industries'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.
Kawasaki Heavy Industries Return-on-Tangible-Equity vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Kawasaki Heavy Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kawasaki Heavy Industries'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 22.02% mean?
Kawasaki Heavy Industries (KWHIF) has a Return-on-Tangible-Equity of 22.02% 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 Kawasaki Heavy Industries and its competitors. This is 258% above median its historical median of 6.15. According to the industry distribution chart, Kawasaki Heavy Industries ranks #133 out of 549 companies in the Conglomerates industry, placing it in the top 24.2%.
Is Kawasaki Heavy Industries' Return-on-Tangible-Equity too high?
Kawasaki Heavy Industries' current Return-on-Tangible-Equity of 22.02% is 258% above median its 10-year median of 6.15. The Conglomerates industry median Return-on-Tangible-Equity is 7.44. Kawasaki Heavy Industries' value of 22.02% is 196% above this industry median. Based on the distribution chart, Kawasaki Heavy Industries ranks #133 out of 549 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Kawasaki Heavy Industries has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kawasaki Heavy Industries' Return-on-Tangible-Equity compare to GEV and ETN?
According to the Conglomerates industry distribution chart, Kawasaki Heavy Industries ranks #133 out of 549 companies for Return-on-Tangible-Equity. This places Kawasaki Heavy Industries in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.44. Kawasaki Heavy Industries' value of 22.02% is 196% above this benchmark. While the company's 10-year median is 6.15 vs. the industry median of 7.44, Kawasaki Heavy Industries 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 Conglomerates company?
The median Return-on-Tangible-Equity among Conglomerates companies is 7.44, based on 549 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. Kawasaki Heavy Industries's current Return-on-Tangible-Equity of 22.02% is 196% 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 Kawasaki Heavy Industries and its competitors. For the Conglomerates industry, the median Return-on-Tangible-Equity is 7.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kawasaki Heavy Industries's current Return-on-Tangible-Equity is 22.02%, which is 258% above median its own 10-year median of 6.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawasaki Heavy Industries stock overvalued right now?
Based on GuruFocus' analysis, Kawasaki Heavy Industries (KWHIF) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.88, compared to a current price of $15.89 — trading 79% above its estimated fair value. The current Return-on-Tangible-Equity is 22.02%, which is 258% above median its 10-year median of 6.15 and 196% above the Conglomerates industry median of 7.44. Kawasaki Heavy Industries' overall GF Score™ is 84/100 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 Kawasaki Heavy Industries (KWHIF), the current Return-on-Tangible-Equity is 22.02% 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 Kawasaki Heavy Industries (KWHIF) Overvalued in 2026?
Based on GuruFocus' analysis, Kawasaki Heavy Industries stock appears to be overvalued.
The current stock price of $15.89 is trading 79% above its estimated GF Value™ of $8.88.
GuruFocus considers Kawasaki Heavy Industries to be Significantly Overvalued.
Key valuation signals for KWHIF:
Return-on-Tangible-Equity: 22.02% (258% above median its 10-year median of 6.15)
GF Value™: $8.88 vs. price of $15.89 (79% above fair value)
Industry Position: 196% above the Conglomerates median (#133 of 549)
No single metric tells the full story. See the KWHIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawasaki Heavy Industries Ltd is a Japan-based conglomerate with operations in aerospace, marine, and vehicles. The company operates through six segments. The Aerospace Systems segment manufactures and sells aircraft, engines, and space-related equipment. The Energy Solutions & Marine segment provides energy equipment, hydrogen systems, marine propulsion, plants, ships, and crushers. The Power Sports & Engine segment produces motorcycles, off-road vehicles, personal watercraft, and general-purpose engines. The Precision Machinery and Robots segment offers hydraulic equipment and industrial robots. The Vehicle segment manufactures railway vehicles and snow removal machinery. The Other segment covers commerce mediation, sales, orders, and welfare facility management.
84GF Score
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