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Aichi ElectricNGO:6623 -2.78%65 Return-on-Tangible-Equity is 11.03% as of Mar. 2026, which is 27% above its 10-year median of 8.69. GuruFocus rates NGO:6623 with a GF Score™ of 65/100 and a GF Value™ of 円4,882.27 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,969 Industrial Products companies, Aichi Electric ranks better than 65.14% 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. Aichi Electric's annualized net income for the quarter that ended in Mar. 2026 was 円9,204 Mil. Aichi Electric's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円83,444 Mil. Therefore, Aichi Electric's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.03%.
The historical rank and industry rank for Aichi Electric's Return-on-Tangible-Equity or its related term are showing as below:
NGO:6623'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.21 Med: 8.69 Max: 11.57
Current: 10.41
During the past 13 years, Aichi Electric's highest Return-on-Tangible-Equity was 11.57%. The lowest was 5.21%. And the median was 8.69%.
NGO:6623's Return-on-Tangible-Equity is ranked better than 65.14% of 2969
companies
in the Industrial Products industry
Industry Median: 6.72
vs NGO:6623: 10.41
Aichi Electric (NGO:6623) 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.
Aichi Electric Return-on-Tangible-Equity Related Terms
Aichi Electric Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Aichi Electric'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.
NGO:6623 vs VRT, BE: Return-on-Tangible-Equity Comparison
For the Electrical Equipment & Parts subindustry, Aichi Electric'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.
Aichi Electric Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Aichi Electric's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Aichi Electric'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 two times the semi-annual (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 11.03% mean?
Aichi Electric (NGO:6623) has a Return-on-Tangible-Equity of 11.03% 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 Aichi Electric and its competitors. This is 27% above median its historical median of 8.69. Over the past decade, Aichi Electric's Return-on-Tangible-Equity has ranged from 5.21 to 11.57. According to the industry distribution chart, Aichi Electric ranks #1035 out of 2969 companies in the Industrial Products industry, placing it in the top 34.9%.
Is Aichi Electric's Return-on-Tangible-Equity too high?
Aichi Electric's current Return-on-Tangible-Equity of 11.03% is 27% above median its 10-year median of 8.69. Over the past 10 years, this metric has ranged from a low of 5.21 to a high of 11.57. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Aichi Electric's value of 11.03% is 64.1% above this industry median. Based on the distribution chart, Aichi Electric ranks #1035 out of 2969 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Aichi Electric has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aichi Electric's Return-on-Tangible-Equity compare to VRT and BE?
According to the Industrial Products industry distribution chart, Aichi Electric ranks #1035 out of 2969 companies for Return-on-Tangible-Equity. This puts Aichi Electric in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.72. Aichi Electric's value of 11.03% is 64.1% above this benchmark. Historically, Aichi Electric's own Return-on-Tangible-Equity has ranged from 5.21 to 11.57 over the past decade. While the company's 10-year median is 8.69 vs. the industry median of 6.72, Aichi Electric 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 6.72, based on 2,969 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. Aichi Electric's current Return-on-Tangible-Equity of 11.03% is 64.1% 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 Aichi Electric and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aichi Electric's current Return-on-Tangible-Equity is 11.03%, which is 27% above median its own 10-year median of 8.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aichi Electric stock overvalued right now?
Based on GuruFocus' analysis, Aichi Electric (NGO:6623) is currently considered Significantly Overvalued. The stock's GF Value™ is 円4,882.27, compared to a current price of 円8,750.00 — trading 79.2% above its estimated fair value. The current Return-on-Tangible-Equity is 11.03%, which is 27% above median its 10-year median of 8.69 and 64.1% above the Industrial Products industry median of 6.72. Aichi Electric's overall GF Score™ is 65/100 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 Aichi Electric (NGO:6623), the current Return-on-Tangible-Equity is 11.03% 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 Aichi Electric (NGO:6623) Overvalued in 2026?
Based on GuruFocus' analysis, Aichi Electric stock appears to be overvalued.
The current stock price of 円8,750.00 is trading 79.2% above its estimated GF Value™ of 円4,882.27.
GuruFocus considers Aichi Electric to be Significantly Overvalued.
Key valuation signals for NGO:6623:
Return-on-Tangible-Equity: 11.03% (27% above median its 10-year median of 8.69)
GF Value™: 円4,882.27 vs. price of 円8,750.00 (79.2% above fair value)
Industry Position: 64.1% above the Industrial Products median (#1035 of 2969)
No single metric tells the full story. See the NGO:6623 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aichi Electric Co., Ltd is engaged in providing electric power products in Japan. The company's products offerings are A transformer, Motor, Applied equipment, Plant equipment, Power conversion equipment, and others. Its segments include: Power Equipment; and Rotating Machines.
65GF Score
Get the complete analysis for NGO:6623
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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