Shinwa Co (NGO:7607) Return-on-Tangible-Equity: 11.14% (As of Feb. 2026) — Near Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

NGO:7607 Shinwa Co Ltd NGO:7607
75 GF Score
Price 円2,464.00
GF Value 円2,613.53
! 1 Warning Sign
View Full Analysis

What is Shinwa Co Return-on-Tangible-Equity?

Shinwa Co NGO:7607 75 Return-on-Tangible-Equity is 11.14% as of Feb. 2026, which is 1% below its 10-year median of 11.20. GuruFocus rates NGO:7607 with a GF Score™ of 75/100 and a GF Value™ of 円2,613.53. The stock has 1 warning sign investors should review. Among 2,970 Industrial Products companies, Shinwa Co ranks better than 55.19% 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. Shinwa Co's annualized net income for the quarter that ended in Feb. 2026 was 円4,968 Mil. Shinwa Co's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円44,594 Mil. Therefore, Shinwa Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 11.14%.

The historical rank and industry rank for Shinwa Co's Return-on-Tangible-Equity or its related term are showing as below:

NGO:7607' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.94   Med: 11.2   Max: 14.08
Current: 7.93

During the past 13 years, Shinwa Co's highest Return-on-Tangible-Equity was 14.08%. The lowest was 6.94%. And the median was 11.20%.

NGO:7607's Return-on-Tangible-Equity is ranked better than
55.19% of 2970 companies
in the Industrial Products industry
Industry Median: 6.725 vs NGO:7607: 7.93

Shinwa Co  (NGO:7607) 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.


Shinwa Co Return-on-Tangible-Equity Related Terms


Shinwa Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Shinwa 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.

Shinwa Co Return-on-Tangible-Equity Chart

Shinwa Co Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.13 11.39 9.81 6.94 7.95

Shinwa Co Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.75 5.93 7.53 11.14 7.02

NGO:7607 vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison

For the Specialty Industrial Machinery subindustry, Shinwa 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.


Shinwa Co Return-on-Tangible-Equity vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shinwa Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Shinwa Co's Return-on-Tangible-Equity falls into.


NGO:7607
75GF Score
Shinwa Co Ltd NGO:7607
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shinwa Co Return-on-Tangible-Equity Calculation

Shinwa Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Aug. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Aug. 2025 )  (A: Aug. 2024 )(A: Aug. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Aug. 2025 )  (A: Aug. 2024 )(A: Aug. 2025 )
=3312.345/( (40585.926+42770.085 )/ 2 )
=3312.345/41678.0055
=7.95 %

Shinwa Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Feb. 2026 )  (Q: Nov. 2025 )(Q: Feb. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Feb. 2026 )  (Q: Nov. 2025 )(Q: Feb. 2026 )
=4968.484/( (43442.576+45745.419)/ 2 )
=4968.484/44593.9975
=11.14 %

* 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 (Feb. 2026) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 11.14% mean?
Shinwa Co (NGO:7607) has a Return-on-Tangible-Equity of 11.14% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Shinwa Co and its competitors. This is near median its historical median of 11.20. Over the past decade, Shinwa Co's Return-on-Tangible-Equity has ranged from 6.94 to 14.08. According to the industry distribution chart, Shinwa Co ranks #1331 out of 2970 companies in the Industrial Products industry, placing it in the top 44.8%.
Is Shinwa Co's Return-on-Tangible-Equity too high?
Shinwa Co's current Return-on-Tangible-Equity of 11.14% is near median its 10-year median of 11.20. Over the past 10 years, this metric has ranged from a low of 6.94 to a high of 14.08. The Industrial Products industry median Return-on-Tangible-Equity is 6.73. Shinwa Co's value of 11.14% is 65.7% above this industry median. Based on the distribution chart, Shinwa Co ranks #1331 out of 2970 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Shinwa Co has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Shinwa Co's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shinwa Co ranks #1331 out of 2970 companies for Return-on-Tangible-Equity. This puts Shinwa Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.73. Shinwa Co's value of 11.14% is 65.7% above this benchmark. Historically, Shinwa Co's own Return-on-Tangible-Equity has ranged from 6.94 to 14.08 over the past decade. While the company's 10-year median is 11.20 vs. the industry median of 6.73, Shinwa 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.73, based on 2,970 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. Shinwa Co's current Return-on-Tangible-Equity of 11.14% is 65.7% 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 Shinwa Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shinwa Co's current Return-on-Tangible-Equity is 11.14%, which is near median its own 10-year median of 11.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinwa Co stock overvalued right now?
Shinwa Co (NGO:7607) has a current Return-on-Tangible-Equity of 11.14%. The stock's GF Value™ is 円2,613.53, compared to a current price of 円2,464.00 — trading 5.7% below its estimated fair value. The current Return-on-Tangible-Equity is 11.14%, which is near median its 10-year median of 11.20 and 65.7% above the Industrial Products industry median of 6.73. Shinwa Co's overall GF Score™ is 75/100 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 Shinwa Co (NGO:7607), the current Return-on-Tangible-Equity is 11.14% as of Feb. 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 Shinwa Co (NGO:7607) Overvalued in 2026?

Based on GuruFocus' analysis, Shinwa Co stock appears to be undervalued. The current stock price of 円2,464.00 is trading 5.7% below its estimated GF Value™ of 円2,613.53.

Key valuation signals for NGO:7607:

  • Return-on-Tangible-Equity: 11.14% (near median its 10-year median of 11.20)
  • GF Value™: 円2,613.53 vs. price of 円2,464.00 (5.7% below fair value)
  • GF Score™: 75/100 with 1 warning sign
  • Industry Position: 65.7% above the Industrial Products median (#1331 of 2970)

No single metric tells the full story. See the NGO:7607 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shinwa Co Business Description

Other Exchanges 7607:Japan
Address 2-9-3, Naeshiro, Nagoya, JPN
Shinwa Co Ltd is an engineering, manufacturing, and international trading and logistics company. The deals in metal-joining, industrial machine and factory automation system related products, maintenance, re-condition and upgrade of machinery and equipment requiring specialized welding techniques.
75GF Score

Get the complete analysis for NGO:7607

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円2,464.00
Price
円2,613.53
GF Value