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Nankai Chemical CoTSE:4040 +0.55%72 Return-on-Tangible-Equity is 50.03% as of Mar. 2026, which is 298% above its 10-year median of 12.56. GuruFocus rates TSE:4040 with a GF Score™ of 72/100 and a GF Value™ of 円2,848.37 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,570 Chemicals companies, Nankai Chemical Co ranks better than 94.71% 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. Nankai Chemical Co's annualized net income for the quarter that ended in Mar. 2026 was 円4,684 Mil. Nankai Chemical Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円9,362 Mil. Therefore, Nankai Chemical Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 50.03%.
The historical rank and industry rank for Nankai Chemical Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4040'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.07 Med: 12.56 Max: 31.37
Current: 31.37
During the past 6 years, Nankai Chemical Co's highest Return-on-Tangible-Equity was 31.37%. The lowest was 4.07%. And the median was 12.56%.
TSE:4040's Return-on-Tangible-Equity is ranked better than 94.71% of 1570
companies
in the Chemicals industry
Industry Median: 5.77
vs TSE:4040: 31.37
Nankai Chemical Co (TSE:4040) 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.
Nankai Chemical Co Return-on-Tangible-Equity Related Terms
Nankai Chemical Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nankai Chemical 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.
Nankai Chemical Co Return-on-Tangible-Equity Chart
TSE:4040 vs DOW: Return-on-Tangible-Equity Comparison
For the Chemicals subindustry, Nankai Chemical 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.
Nankai Chemical Co Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nankai Chemical Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nankai Chemical 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 50.03% mean?
Nankai Chemical Co (TSE:4040) has a Return-on-Tangible-Equity of 50.03% 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 Nankai Chemical Co and its competitors. This is 298% above median its historical median of 12.56. Over the past decade, Nankai Chemical Co's Return-on-Tangible-Equity has ranged from 4.07 to 31.37. According to the industry distribution chart, Nankai Chemical Co ranks #83 out of 1570 companies in the Chemicals industry, placing it in the top 5.3%.
Is Nankai Chemical Co's Return-on-Tangible-Equity too high?
Nankai Chemical Co's current Return-on-Tangible-Equity of 50.03% is 298% above median its 10-year median of 12.56. Over the past 10 years, this metric has ranged from a low of 4.07 to a high of 31.37. The Chemicals industry median Return-on-Tangible-Equity is 5.77. Nankai Chemical Co's value of 50.03% is 767.1% above this industry median. Based on the distribution chart, Nankai Chemical Co ranks #83 out of 1570 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Nankai Chemical Co has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nankai Chemical Co's Return-on-Tangible-Equity compare to DOW?
According to the Chemicals industry distribution chart, Nankai Chemical Co ranks #83 out of 1570 companies for Return-on-Tangible-Equity. This places Nankai Chemical Co in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.77. Nankai Chemical Co's value of 50.03% is 767.1% above this benchmark. Historically, Nankai Chemical Co's own Return-on-Tangible-Equity has ranged from 4.07 to 31.37 over the past decade. While the company's 10-year median is 12.56 vs. the industry median of 5.77, Nankai Chemical 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.77, based on 1,570 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. Nankai Chemical Co's current Return-on-Tangible-Equity of 50.03% is 767.1% 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 Nankai Chemical Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nankai Chemical Co's current Return-on-Tangible-Equity is 50.03%, which is 298% above median its own 10-year median of 12.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nankai Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Nankai Chemical Co (TSE:4040) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,848.37, compared to a current price of 円3,630.00 — trading 27.4% above its estimated fair value. The current Return-on-Tangible-Equity is 50.03%, which is 298% above median its 10-year median of 12.56 and 767.1% above the Chemicals industry median of 5.77. Nankai Chemical Co's overall GF Score™ is 72/100 with 2 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 Nankai Chemical Co (TSE:4040), the current Return-on-Tangible-Equity is 50.03% 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 Nankai Chemical Co (TSE:4040) Overvalued in 2026?
Based on GuruFocus' analysis, Nankai Chemical Co stock appears to be overvalued.
The current stock price of 円3,630.00 is trading 27.4% above its estimated GF Value™ of 円2,848.37.
GuruFocus considers Nankai Chemical Co to be Modestly Overvalued.
Key valuation signals for TSE:4040:
Return-on-Tangible-Equity: 50.03% (298% above median its 10-year median of 12.56)
GF Value™: 円2,848.37 vs. price of 円3,630.00 (27.4% above fair value)
Industry Position: 767.1% above the Chemicals median (#83 of 1570)
No single metric tells the full story. See the TSE:4040 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nankai Chemical Co Ltd is engaged in the manufacturing and sales of chemical products, agricultural products, quasi-drugs and food additives. collecting, transporting, and recycling of industrial wastes.
72GF Score
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