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Sumitomo Heavy IndustriesSTU:SSM1 +0.77%78 Return-on-Tangible-Equity is 4.86% as of Mar. 2026, which is 44% below its 10-year median of 8.71. GuruFocus rates STU:SSM1 with a GF Score™ of 78/100 and a GF Value™ of €19.77 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,972 Industrial Products companies, Sumitomo Heavy Industries ranks worse than 56.53% 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. Sumitomo Heavy Industries's annualized net income for the quarter that ended in Mar. 2026 was €173 Mil. Sumitomo Heavy Industries's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €3,553 Mil. Therefore, Sumitomo Heavy Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.86%.
The historical rank and industry rank for Sumitomo Heavy Industries's Return-on-Tangible-Equity or its related term are showing as below:
STU:SSM1'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.3 Med: 8.71 Max: 11.87
Current: 5.23
During the past 13 years, Sumitomo Heavy Industries's highest Return-on-Tangible-Equity was 11.87%. The lowest was 1.30%. And the median was 8.71%.
STU:SSM1's Return-on-Tangible-Equity is ranked worse than 56.53% of 2972
companies
in the Industrial Products industry
Industry Median: 6.72
vs STU:SSM1: 5.23
Sumitomo Heavy Industries (STU:SSM1) 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.
Sumitomo Heavy Industries Return-on-Tangible-Equity Related Terms
Sumitomo Heavy Industries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sumitomo 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.
Sumitomo Heavy Industries Return-on-Tangible-Equity Chart
STU:SSM1 vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Sumitomo 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.
Sumitomo Heavy Industries Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Sumitomo Heavy Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sumitomo 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 4.86% mean?
Sumitomo Heavy Industries (STU:SSM1) has a Return-on-Tangible-Equity of 4.86% 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 Sumitomo Heavy Industries and its competitors. This is 44% below median its historical median of 8.71. Over the past decade, Sumitomo Heavy Industries' Return-on-Tangible-Equity has ranged from 1.30 to 11.87. According to the industry distribution chart, Sumitomo Heavy Industries ranks #1680 out of 2972 companies in the Industrial Products industry, placing it in the top 56.5%.
Is Sumitomo Heavy Industries' Return-on-Tangible-Equity too high?
Sumitomo Heavy Industries' current Return-on-Tangible-Equity of 4.86% is 44% below median its 10-year median of 8.71. Over the past 10 years, this metric has ranged from a low of 1.30 to a high of 11.87. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Sumitomo Heavy Industries' value of 4.86% is 27.7% below this industry median. Based on the distribution chart, Sumitomo Heavy Industries ranks #1680 out of 2972 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Sumitomo Heavy Industries has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Heavy Industries' Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Sumitomo Heavy Industries ranks #1680 out of 2972 companies for Return-on-Tangible-Equity. This places Sumitomo Heavy Industries in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.72. Sumitomo Heavy Industries' value of 4.86% is 27.7% below this benchmark. Historically, Sumitomo Heavy Industries' own Return-on-Tangible-Equity has ranged from 1.30 to 11.87 over the past decade. While the company's 10-year median is 8.71 vs. the industry median of 6.72, Sumitomo Heavy Industries has consistently been below 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 2,972 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. Sumitomo Heavy Industries's current Return-on-Tangible-Equity of 4.86% is 27.7% below 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 Sumitomo Heavy Industries 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. Sumitomo Heavy Industries's current Return-on-Tangible-Equity is 4.86%, which is 44% below median its own 10-year median of 8.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Heavy Industries stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Heavy Industries (STU:SSM1) is currently considered Significantly Overvalued. The stock's GF Value™ is €19.77, compared to a current price of €27.47 — trading 38.9% above its estimated fair value. The current Return-on-Tangible-Equity is 4.86%, which is 44% below median its 10-year median of 8.71 and 27.7% below the Industrial Products industry median of 6.72. Sumitomo Heavy Industries' overall GF Score™ is 78/100 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 Sumitomo Heavy Industries (STU:SSM1), the current Return-on-Tangible-Equity is 4.86% 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 Sumitomo Heavy Industries (STU:SSM1) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Heavy Industries stock appears to be overvalued.
The current stock price of €27.47 is trading 38.9% above its estimated GF Value™ of €19.77.
GuruFocus considers Sumitomo Heavy Industries to be Significantly Overvalued.
Key valuation signals for STU:SSM1:
Return-on-Tangible-Equity: 4.86% (44% below median its 10-year median of 8.71)
GF Value™: €19.77 vs. price of €27.47 (38.9% above fair value)
Industry Position: 27.7% below the Industrial Products median (#1680 of 2972)
No single metric tells the full story. See the STU:SSM1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Heavy Industries Ltd manufactures and sells mechanical components. The company operates through four segments. The Energy & Lifelines segment covers power generation equipment, boilers, turbines, pumps, water treatment systems, ships, and food machinery. Industrial Machinery includes plastic and film processing machinery, cryogenic refrigerators, semiconductor equipment, accelerators, medical devices, forging presses, machine tools, and defense equipment. Logistics & Construction handles excavators, cranes, road machinery, logistics systems, and parking systems. Mechatronics provides gear reducers, motors, inverters, laser processing systems, and control devices, while Others include real estate and software.
78GF Score
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