Nippon Hotel & Residential Investment (TSE:3472) Return-on-Tangible-Equity: 5.97% (As of Nov. 2025) — 23% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:3472 Nippon Hotel & Residential Investment Corp TSE:3472
54 GF Score
Price 円65,400.00
GF Value 円74,186.75
Valuation Modestly Undervalued
! 5 Warning Signs
View Full Analysis

What is Nippon Hotel & Residential Investment Return-on-Tangible-Equity?

Nippon Hotel & Residential Investment TSE:3472 -1.06% 54 Return-on-Tangible-Equity is 5.97% as of Nov. 2025, which is 23% above its 10-year median of 4.84. GuruFocus rates TSE:3472 with a GF Score™ of 54/100 and a GF Value™ of 円74,186.75 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 928 REITs companies, Nippon Hotel & Residential Investment ranks worse than 54.53% 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. Nippon Hotel & Residential Investment's annualized net income for the quarter that ended in Nov. 2025 was 円1,535 Mil. Nippon Hotel & Residential Investment's average shareholder tangible equity for the quarter that ended in Nov. 2025 was 円25,704 Mil. Therefore, Nippon Hotel & Residential Investment's annualized Return-on-Tangible-Equity for the quarter that ended in Nov. 2025 was 5.97%.

The historical rank and industry rank for Nippon Hotel & Residential Investment's Return-on-Tangible-Equity or its related term are showing as below:

TSE:3472' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.29   Med: 4.84   Max: 6.19
Current: 5.78

During the past 10 years, Nippon Hotel & Residential Investment's highest Return-on-Tangible-Equity was 6.19%. The lowest was 3.29%. And the median was 4.84%.

TSE:3472's Return-on-Tangible-Equity is ranked worse than
54.53% of 928 companies
in the REITs industry
Industry Median: 6.265 vs TSE:3472: 5.78

Nippon Hotel & Residential Investment  (TSE:3472) 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.


Nippon Hotel & Residential Investment Return-on-Tangible-Equity Related Terms


Nippon Hotel & Residential Investment Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Nippon Hotel & Residential Investment'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.

Nippon Hotel & Residential Investment Return-on-Tangible-Equity Chart

Nippon Hotel & Residential Investment Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.10 3.29 3.35 3.85 5.98

Nippon Hotel & Residential Investment Semi-Annual Data
Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24 May25 Nov25
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.31 3.56 4.15 5.38 5.97

TSE:3472 vs HST, RHP, APLE: Return-on-Tangible-Equity Comparison

For the REIT - Hotel & Motel subindustry, Nippon Hotel & Residential Investment'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.


Nippon Hotel & Residential Investment Return-on-Tangible-Equity vs REITs Industry

For the REITs industry and Real Estate sector, Nippon Hotel & Residential Investment's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Nippon Hotel & Residential Investment's Return-on-Tangible-Equity falls into.


TSE:3472
54GF Score
Nippon Hotel & Residential Investment Corp TSE:3472
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nippon Hotel & Residential Investment Return-on-Tangible-Equity Calculation

Nippon Hotel & Residential Investment's annualized Return-on-Tangible-Equity for the fiscal year that ended in Nov. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Nov. 2025 )  (A: Nov. 2024 )(A: Nov. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Nov. 2025 )  (A: Nov. 2024 )(A: Nov. 2025 )
=1390.553/( (20730.255+25774.294 )/ 2 )
=1390.553/23252.2745
=5.98 %

Nippon Hotel & Residential Investment's annualized Return-on-Tangible-Equity for the quarter that ended in Nov. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Nov. 2025 )  (Q: May. 2025 )(Q: Nov. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Nov. 2025 )  (Q: May. 2025 )(Q: Nov. 2025 )
=1535.03/( (25633.583+25774.294)/ 2 )
=1535.03/25703.9385
=5.97 %

* 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 (Nov. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 5.97% mean?
Nippon Hotel & Residential Investment (TSE:3472) has a Return-on-Tangible-Equity of 5.97% as of Nov. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Nippon Hotel & Residential Investment and its competitors. This is 23% above median its historical median of 4.84. Over the past decade, Nippon Hotel & Residential Investment's Return-on-Tangible-Equity has ranged from 3.29 to 6.19. According to the industry distribution chart, Nippon Hotel & Residential Investment ranks #506 out of 928 companies in the REITs industry, placing it in the top 54.5%.
Is Nippon Hotel & Residential Investment's Return-on-Tangible-Equity too high?
Nippon Hotel & Residential Investment's current Return-on-Tangible-Equity of 5.97% is 23% above median its 10-year median of 4.84. Over the past 10 years, this metric has ranged from a low of 3.29 to a high of 6.19. The REITs industry median Return-on-Tangible-Equity is 6.27. Nippon Hotel & Residential Investment's value of 5.97% is 4.7% below this industry median. Based on the distribution chart, Nippon Hotel & Residential Investment ranks #506 out of 928 companies in the REITs industry, which is below the industry midpoint. Overall, Nippon Hotel & Residential Investment has a GF Score™ of 54/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Hotel & Residential Investment's Return-on-Tangible-Equity compare to HST and RHP?
According to the REITs industry distribution chart, Nippon Hotel & Residential Investment ranks #506 out of 928 companies for Return-on-Tangible-Equity. This places Nippon Hotel & Residential Investment in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.27. Nippon Hotel & Residential Investment's value of 5.97% is 4.7% below this benchmark. Historically, Nippon Hotel & Residential Investment's own Return-on-Tangible-Equity has ranged from 3.29 to 6.19 over the past decade. While the company's 10-year median is 4.84 vs. the industry median of 6.27, Nippon Hotel & Residential Investment 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 a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.27, based on 928 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. Nippon Hotel & Residential Investment's current Return-on-Tangible-Equity of 5.97% is 4.7% 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 Nippon Hotel & Residential Investment and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Hotel & Residential Investment's current Return-on-Tangible-Equity is 5.97%, which is 23% above median its own 10-year median of 4.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Hotel & Residential Investment stock overvalued right now?
Based on GuruFocus' analysis, Nippon Hotel & Residential Investment (TSE:3472) is currently considered Modestly Undervalued. The stock's GF Value™ is 円74,186.75, compared to a current price of 円65,400.00 — trading 11.8% below its estimated fair value. The current Return-on-Tangible-Equity is 5.97%, which is 23% above median its 10-year median of 4.84 and 4.7% below the REITs industry median of 6.27. Nippon Hotel & Residential Investment's overall GF Score™ is 54/100 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 Nippon Hotel & Residential Investment (TSE:3472), the current Return-on-Tangible-Equity is 5.97% as of Nov. 2025. 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 Nippon Hotel & Residential Investment (TSE:3472) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Hotel & Residential Investment stock appears to be undervalued. The current stock price of 円65,400.00 is trading 11.8% below its estimated GF Value™ of 円74,186.75. GuruFocus considers Nippon Hotel & Residential Investment to be Modestly Undervalued.

Key valuation signals for TSE:3472:

  • Return-on-Tangible-Equity: 5.97% (23% above median its 10-year median of 4.84)
  • GF Value™: 円74,186.75 vs. price of 円65,400.00 (11.8% below fair value)
  • GF Score™: 54/100 with 5 warning signs
  • Industry Position: 4.7% below the REITs median (#506 of 928)

No single metric tells the full story. See the TSE:3472 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nippon Hotel & Residential Investment Business Description

Industry Real EstateREITs
Address 3-3-4, Nihonbashihoncho, Chuo-ku, Tokyo, JPN, 103-0023
Nippon Hotel & Residential Investment Corp is a real estate investment trust. The firm invests in onsen and spa-related facilities, and Accomodation. The company principally invests in hot spring-related industries, such as hotels, hot spring facilities and theme parks.
54GF Score

Get the complete analysis for TSE:3472

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円65,400.00
Price
円74,186.75
GF Value