ObayashiOBYCF 74 Return-on-Tangible-Equity is 14.26% as of Mar. 2026, which is 4% above its 10-year median of 13.69. GuruFocus rates OBYCF with a GF Score™ of 74/100 and a GF Value™ of $15.28 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,704 Construction companies, Obayashi ranks better than 70.01% 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. Obayashi's annualized net income for the quarter that ended in Mar. 2026 was $1,059 Mil. Obayashi's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $7,423 Mil. Therefore, Obayashi's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.26%.
The historical rank and industry rank for Obayashi's Return-on-Tangible-Equity or its related term are showing as below:
OBYCF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.18 Med: 13.69 Max: 17.22
Current: 15.3
During the past 13 years, Obayashi's highest Return-on-Tangible-Equity was 17.22%. The lowest was 4.18%. And the median was 13.69%.
OBYCF's Return-on-Tangible-Equity is ranked better than 70.01% of 1704
companies
in the Construction industry
Industry Median: 8.245
vs OBYCF: 15.30
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.
Obayashi Return-on-Tangible-Equity Related Terms
Obayashi Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Obayashi'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.
OBYCF vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Obayashi'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.
Obayashi Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Obayashi's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Obayashi'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 14.26% mean?
Obayashi (OBYCF) has a Return-on-Tangible-Equity of 14.26% 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 Obayashi and its competitors. This is near median its historical median of 13.69. Over the past decade, Obayashi's Return-on-Tangible-Equity has ranged from 4.18 to 17.22. According to the industry distribution chart, Obayashi ranks #511 out of 1704 companies in the Construction industry, placing it in the top 30%.
Is Obayashi's Return-on-Tangible-Equity too high?
Obayashi's current Return-on-Tangible-Equity of 14.26% is near median its 10-year median of 13.69. Over the past 10 years, this metric has ranged from a low of 4.18 to a high of 17.22. The Construction industry median Return-on-Tangible-Equity is 8.25. Obayashi's value of 14.26% is 73% above this industry median. Based on the distribution chart, Obayashi ranks #511 out of 1704 companies in the Construction industry, which is above the industry midpoint. Overall, Obayashi has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Obayashi's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Obayashi ranks #511 out of 1704 companies for Return-on-Tangible-Equity. This puts Obayashi in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.25. Obayashi's value of 14.26% is 73% above this benchmark. Historically, Obayashi's own Return-on-Tangible-Equity has ranged from 4.18 to 17.22 over the past decade. While the company's 10-year median is 13.69 vs. the industry median of 8.25, Obayashi 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 8.25, based on 1,704 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. Obayashi's current Return-on-Tangible-Equity of 14.26% is 73% 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 Obayashi and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Obayashi's current Return-on-Tangible-Equity is 14.26%, which is near median its own 10-year median of 13.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Obayashi stock overvalued right now?
Based on GuruFocus' analysis, Obayashi (OBYCF) is currently considered Significantly Overvalued. The stock's GF Value™ is $15.28, compared to a current price of $20.81 — trading 36.2% above its estimated fair value. The current Return-on-Tangible-Equity is 14.26%, which is near median its 10-year median of 13.69 and 73% above the Construction industry median of 8.25. Obayashi's overall GF Score™ is 74/100 with 2 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 Obayashi (OBYCF), the current Return-on-Tangible-Equity is 14.26% 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 Obayashi (OBYCF) Overvalued in 2026?
Based on GuruFocus' analysis, Obayashi stock appears to be overvalued.
The current stock price of $20.81 is trading 36.2% above its estimated GF Value™ of $15.28.
GuruFocus considers Obayashi to be Significantly Overvalued.
Key valuation signals for OBYCF:
Return-on-Tangible-Equity: 14.26% (near median its 10-year median of 13.69)
GF Value™: $15.28 vs. price of $20.81 (36.2% above fair value)
Industry Position: 73% above the Construction median (#511 of 1704)
No single metric tells the full story. See the OBYCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Obayashi Corp is a Japan-based company mainly engaged in construction and real estate business. The company operates through five segments. The Domestic Architecture segment undertakes construction work in Japan, while the Domestic Civil Engineering segment handles civil engineering projects within the country. The Overseas Architecture and Overseas Civil Engineering segments are involved in construction and civil engineering projects abroad. The Real Estate segment focuses on development activities, including real estate sales, leasing, and residential land development. The Others segment is engaged in PFI projects, renewable energy, rug business, and financial services. It generates the majority of its revenue from the Domestic Architecture segment.
74GF Score
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