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Mori-Gumi CoTSE:1853 67 Return-on-Tangible-Equity is 10.31% as of Mar. 2026, which is 21% above its 10-year median of 8.53. GuruFocus rates TSE:1853 with a GF Score™ of 67/100 and a GF Value™ of 円329.79 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,712 Construction companies, Mori-Gumi Co ranks worse than 56.48% 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. Mori-Gumi Co's annualized net income for the quarter that ended in Mar. 2026 was 円1,520 Mil. Mori-Gumi Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円14,746 Mil. Therefore, Mori-Gumi Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 10.31%.
The historical rank and industry rank for Mori-Gumi Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:1853'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.75 Med: 8.53 Max: 23.27
Current: 6.29
During the past 13 years, Mori-Gumi Co's highest Return-on-Tangible-Equity was 23.27%. The lowest was 3.75%. And the median was 8.53%.
TSE:1853's Return-on-Tangible-Equity is ranked worse than 56.48% of 1712
companies
in the Construction industry
Industry Median: 8.21
vs TSE:1853: 6.29
Mori-Gumi Co (TSE:1853) 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.
Mori-Gumi Co Return-on-Tangible-Equity Related Terms
Mori-Gumi Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Mori-Gumi 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.
TSE:1853 vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Mori-Gumi 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.
Mori-Gumi Co Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Mori-Gumi Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Mori-Gumi 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 (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 10.31% mean?
Mori-Gumi Co (TSE:1853) has a Return-on-Tangible-Equity of 10.31% 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 Mori-Gumi Co and its competitors. This is 21% above median its historical median of 8.53. Over the past decade, Mori-Gumi Co's Return-on-Tangible-Equity has ranged from 3.75 to 23.27. According to the industry distribution chart, Mori-Gumi Co ranks #967 out of 1712 companies in the Construction industry, placing it in the top 56.5%.
Is Mori-Gumi Co's Return-on-Tangible-Equity too high?
Mori-Gumi Co's current Return-on-Tangible-Equity of 10.31% is 21% above median its 10-year median of 8.53. Over the past 10 years, this metric has ranged from a low of 3.75 to a high of 23.27. The Construction industry median Return-on-Tangible-Equity is 8.21. Mori-Gumi Co's value of 10.31% is 25.6% above this industry median. Based on the distribution chart, Mori-Gumi Co ranks #967 out of 1712 companies in the Construction industry, which is below the industry midpoint. Overall, Mori-Gumi Co has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mori-Gumi Co's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Mori-Gumi Co ranks #967 out of 1712 companies for Return-on-Tangible-Equity. This places Mori-Gumi Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.21. Mori-Gumi Co's value of 10.31% is 25.6% above this benchmark. Historically, Mori-Gumi Co's own Return-on-Tangible-Equity has ranged from 3.75 to 23.27 over the past decade. While the company's 10-year median is 8.53 vs. the industry median of 8.21, Mori-Gumi 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 a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.21, based on 1,712 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. Mori-Gumi Co's current Return-on-Tangible-Equity of 10.31% is 25.6% 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 Mori-Gumi Co and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mori-Gumi Co's current Return-on-Tangible-Equity is 10.31%, which is 21% above median its own 10-year median of 8.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mori-Gumi Co stock overvalued right now?
Based on GuruFocus' analysis, Mori-Gumi Co (TSE:1853) is currently considered Fairly Valued. The stock's GF Value™ is 円329.79, compared to a current price of 円324.00 — trading 1.8% below its estimated fair value. The current Return-on-Tangible-Equity is 10.31%, which is 21% above median its 10-year median of 8.53 and 25.6% above the Construction industry median of 8.21. Mori-Gumi Co's overall GF Score™ is 67/100 with 3 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 Mori-Gumi Co (TSE:1853), the current Return-on-Tangible-Equity is 10.31% 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 Mori-Gumi Co (TSE:1853) Overvalued in 2026?
Based on GuruFocus' analysis, Mori-Gumi Co stock appears to be undervalued.
The current stock price of 円324.00 is trading 1.8% below its estimated GF Value™ of 円329.79.
GuruFocus considers Mori-Gumi Co to be Fairly Valued.
Key valuation signals for TSE:1853:
Return-on-Tangible-Equity: 10.31% (21% above median its 10-year median of 8.53)
GF Value™: 円329.79 vs. price of 円324.00 (1.8% below fair value)
Industry Position: 25.6% above the Construction median (#967 of 1712)
No single metric tells the full story. See the TSE:1853 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mori-Gumi Co Ltd operates in three divisions - Construction business, which is engaged in civil engineering, architecture, and other general construction work-related businesses; Crushed stone division, which is engaged in the manufacture and sale of crushed stone, crushed sand, etc., and brokerage of transactions.; and Real estate division is engaged in the development, purchase and sale, exchange, and rental of real estate, as well as the agency and brokerage of these businesses.
67GF Score
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