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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. Hikari Holdings Co's annualized net income for the quarter that ended in Feb. 2026 was 円160 Mil. Hikari Holdings Co's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円-324 Mil. Therefore, Hikari Holdings Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Hikari Holdings Co's Return-on-Tangible-Equity or its related term are showing as below:
During the past 10 years, Hikari Holdings Co's highest Return-on-Tangible-Equity was 116.13%. The lowest was -91.12%. And the median was 1.33%.
TSE:1445's Return-on-Tangible-Equity is not ranked *
in the Conglomerates industry.
Industry Median: 7.465 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Hikari Holdings Co (TSE:1445) 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.
Hikari Holdings Co Return-on-Tangible-Equity Related Terms
Hikari Holdings Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hikari Holdings 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.
Hikari Holdings Co Return-on-Tangible-Equity Chart
TSE:1445 vs HON, MMM: Return-on-Tangible-Equity Comparison
For the Conglomerates subindustry, Hikari Holdings 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.
Hikari Holdings Co Return-on-Tangible-Equity vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hikari Holdings Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hikari Holdings Co'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 (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 Negative Tangible Equity% mean?
Hikari Holdings Co (TSE:1445) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Hikari Holdings Co and its competitors.
Is Hikari Holdings Co's Return-on-Tangible-Equity too high?
Hikari Holdings Co's current Return-on-Tangible-Equity is Negative Tangible Equity%. Overall, Hikari Holdings Co has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Hikari Holdings Co's Return-on-Tangible-Equity compare to HON and MMM?
Hikari Holdings Co's Return-on-Tangible-Equity of Negative Tangible Equity% can be compared against companies in the Conglomerates industry. The industry median Return-on-Tangible-Equity is 7.47. 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 7.47, based on 552 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. 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 Hikari Holdings Co and its competitors. For the Conglomerates industry, the median Return-on-Tangible-Equity is 7.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Holdings Co's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Holdings Co stock overvalued right now?
Hikari Holdings Co (TSE:1445) has a current Return-on-Tangible-Equity of Negative Tangible Equity%. The stock's GF Value™ is 円4,506.62, compared to a current price of 円2,900.00 — trading 35.7% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Hikari Holdings Co's overall GF Score™ is 16/100 with 7 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 Hikari Holdings Co (TSE:1445), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Hikari Holdings Co (TSE:1445) Overvalued in 2026?
Based on GuruFocus' analysis, Hikari Holdings Co stock appears to be undervalued.
The current stock price of 円2,900.00 is trading 35.7% below its estimated GF Value™ of 円4,506.62.
No single metric tells the full story. See the TSE:1445 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hikari Holdings Co Ltd is engaged in construction-related businesses with five reportable segments: Tile and Stone Processing and Sales Business, General Building Materials Business, Telecommunications Construction Business, Civil Engineering Work Business, and General Renovation Construction Business. The company provides a wide range of services, including processing and sales of interior and exterior materials, construction work using tiles and stone, telecommunications system design and supervision, public works projects like sewerage and road improvements, and comprehensive renovation work such as tile renovation and ultra-high pressure cleaning. It generates the majority of its revenue from the General Building Materials Business segment.
16GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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