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Raito Kogyo CoTSE:1926 -0.13%93 Return-on-Tangible-Equity is 15.55% as of Mar. 2026, which is 35% above its 10-year median of 11.50. GuruFocus rates TSE:1926 with a GF Score™ of 93/100 and a GF Value™ of 円2,901.38 (Significantly Overvalued). Among 1,712 Construction companies, Raito Kogyo Co ranks better than 68.05% 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. Raito Kogyo Co's annualized net income for the quarter that ended in Mar. 2026 was 円13,768 Mil. Raito Kogyo Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円88,559 Mil. Therefore, Raito Kogyo Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.55%.
The historical rank and industry rank for Raito Kogyo Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:1926'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.44 Med: 11.5 Max: 14.4
Current: 14.4
During the past 13 years, Raito Kogyo Co's highest Return-on-Tangible-Equity was 14.40%. The lowest was 9.44%. And the median was 11.50%.
TSE:1926's Return-on-Tangible-Equity is ranked better than 68.05% of 1712
companies
in the Construction industry
Industry Median: 8.21
vs TSE:1926: 14.40
Raito Kogyo Co (TSE:1926) 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.
Raito Kogyo Co Return-on-Tangible-Equity Related Terms
Raito Kogyo Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Raito Kogyo 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:1926 vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Raito Kogyo 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.
Raito Kogyo Co Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Raito Kogyo Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Raito Kogyo 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 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 15.55% mean?
Raito Kogyo Co (TSE:1926) has a Return-on-Tangible-Equity of 15.55% 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 Raito Kogyo Co and its competitors. This is 35% above median its historical median of 11.50. Over the past decade, Raito Kogyo Co's Return-on-Tangible-Equity has ranged from 9.44 to 14.40. According to the industry distribution chart, Raito Kogyo Co ranks #547 out of 1712 companies in the Construction industry, placing it in the top 32%.
Is Raito Kogyo Co's Return-on-Tangible-Equity too high?
Raito Kogyo Co's current Return-on-Tangible-Equity of 15.55% is 35% above median its 10-year median of 11.50. Over the past 10 years, this metric has ranged from a low of 9.44 to a high of 14.40. The Construction industry median Return-on-Tangible-Equity is 8.21. Raito Kogyo Co's value of 15.55% is 89.4% above this industry median. Based on the distribution chart, Raito Kogyo Co ranks #547 out of 1712 companies in the Construction industry, which is above the industry midpoint. Overall, Raito Kogyo Co has a GF Score™ of 93/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Raito Kogyo Co's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Raito Kogyo Co ranks #547 out of 1712 companies for Return-on-Tangible-Equity. This puts Raito Kogyo Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.21. Raito Kogyo Co's value of 15.55% is 89.4% above this benchmark. Historically, Raito Kogyo Co's own Return-on-Tangible-Equity has ranged from 9.44 to 14.40 over the past decade. While the company's 10-year median is 11.50 vs. the industry median of 8.21, Raito Kogyo 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. Raito Kogyo Co's current Return-on-Tangible-Equity of 15.55% is 89.4% 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 Raito Kogyo 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. Raito Kogyo Co's current Return-on-Tangible-Equity is 15.55%, which is 35% above median its own 10-year median of 11.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Raito Kogyo Co stock overvalued right now?
Based on GuruFocus' analysis, Raito Kogyo Co (TSE:1926) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,901.38, compared to a current price of 円3,880.00 — trading 33.7% above its estimated fair value. The current Return-on-Tangible-Equity is 15.55%, which is 35% above median its 10-year median of 11.50 and 89.4% above the Construction industry median of 8.21. Raito Kogyo Co's overall GF Score™ is 93/100. 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 Raito Kogyo Co (TSE:1926), the current Return-on-Tangible-Equity is 15.55% 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 Raito Kogyo Co (TSE:1926) Overvalued in 2026?
Based on GuruFocus' analysis, Raito Kogyo Co stock appears to be overvalued.
The current stock price of 円3,880.00 is trading 33.7% above its estimated GF Value™ of 円2,901.38.
GuruFocus considers Raito Kogyo Co to be Significantly Overvalued.
Key valuation signals for TSE:1926:
Return-on-Tangible-Equity: 15.55% (35% above median its 10-year median of 11.50)
GF Value™: 円2,901.38 vs. price of 円3,880.00 (33.7% above fair value)
Industry Position: 89.4% above the Construction median (#547 of 1712)
No single metric tells the full story. See the TSE:1926 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Raito Kogyo Co Ltd is a civil engineering contractor. It provides engineering, building construction and sells related products and materials. The company operates in construction business segment that provides slope protection, landslide prevention, foundation/ground improvement, structural repair/reinforcement, environmental restoration, and sewage system construction. It has operations in North America and other countries with revenue from Japan.
93GF Score
Get the complete analysis for TSE:1926
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