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Nippon Soda CoTSE:4041 +0.96%75 Return-on-Tangible-Equity is 11.74% as of Mar. 2026, which is 58% above its 10-year median of 7.45. GuruFocus rates TSE:4041 with a GF Score™ of 75/100 and a GF Value™ of 円2,832.33 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,570 Chemicals companies, Nippon Soda Co ranks better than 66.94% 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 Soda Co's annualized net income for the quarter that ended in Mar. 2026 was 円23,340 Mil. Nippon Soda Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円198,772 Mil. Therefore, Nippon Soda Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.74%.
The historical rank and industry rank for Nippon Soda Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4041'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.2 Med: 7.45 Max: 10.56
Current: 9.56
During the past 13 years, Nippon Soda Co's highest Return-on-Tangible-Equity was 10.56%. The lowest was 4.20%. And the median was 7.45%.
TSE:4041's Return-on-Tangible-Equity is ranked better than 66.94% of 1570
companies
in the Chemicals industry
Industry Median: 5.745
vs TSE:4041: 9.56
Nippon Soda Co (TSE:4041) 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 Soda Co Return-on-Tangible-Equity Related Terms
Nippon Soda Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nippon Soda 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:4041 vs DOW: Return-on-Tangible-Equity Comparison
For the Chemicals subindustry, Nippon Soda 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.
Nippon Soda Co Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Soda Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nippon Soda 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 11.74% mean?
Nippon Soda Co (TSE:4041) has a Return-on-Tangible-Equity of 11.74% 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 Nippon Soda Co and its competitors. This is 58% above median its historical median of 7.45. Over the past decade, Nippon Soda Co's Return-on-Tangible-Equity has ranged from 4.20 to 10.56. According to the industry distribution chart, Nippon Soda Co ranks #519 out of 1570 companies in the Chemicals industry, placing it in the top 33.1%.
Is Nippon Soda Co's Return-on-Tangible-Equity too high?
Nippon Soda Co's current Return-on-Tangible-Equity of 11.74% is 58% above median its 10-year median of 7.45. Over the past 10 years, this metric has ranged from a low of 4.20 to a high of 10.56. The Chemicals industry median Return-on-Tangible-Equity is 5.75. Nippon Soda Co's value of 11.74% is 104.4% above this industry median. Based on the distribution chart, Nippon Soda Co ranks #519 out of 1570 companies in the Chemicals industry, which is above the industry midpoint. Overall, Nippon Soda Co has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Soda Co's Return-on-Tangible-Equity compare to DOW?
According to the Chemicals industry distribution chart, Nippon Soda Co ranks #519 out of 1570 companies for Return-on-Tangible-Equity. This puts Nippon Soda Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.75. Nippon Soda Co's value of 11.74% is 104.4% above this benchmark. Historically, Nippon Soda Co's own Return-on-Tangible-Equity has ranged from 4.20 to 10.56 over the past decade. While the company's 10-year median is 7.45 vs. the industry median of 5.75, Nippon Soda 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 5.75, 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. Nippon Soda Co's current Return-on-Tangible-Equity of 11.74% is 104.4% 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 Nippon Soda Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Soda Co's current Return-on-Tangible-Equity is 11.74%, which is 58% above median its own 10-year median of 7.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Soda Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Soda Co (TSE:4041) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,832.33, compared to a current price of 円3,690.00 — trading 30.3% above its estimated fair value. The current Return-on-Tangible-Equity is 11.74%, which is 58% above median its 10-year median of 7.45 and 104.4% above the Chemicals industry median of 5.75. Nippon Soda Co's overall GF Score™ is 75/100 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 Nippon Soda Co (TSE:4041), the current Return-on-Tangible-Equity is 11.74% 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 Nippon Soda Co (TSE:4041) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Soda Co stock appears to be overvalued.
The current stock price of 円3,690.00 is trading 30.3% above its estimated GF Value™ of 円2,832.33.
GuruFocus considers Nippon Soda Co to be Modestly Overvalued.
Key valuation signals for TSE:4041:
Return-on-Tangible-Equity: 11.74% (58% above median its 10-year median of 7.45)
GF Value™: 円2,832.33 vs. price of 円3,690.00 (30.3% above fair value)
Industry Position: 104.4% above the Chemicals median (#519 of 1570)
No single metric tells the full story. See the TSE:4041 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Soda Co Ltd manufactures and sells chemical products and operates in three major and three minor segments. The chemicals segment sells caustic soda, sodium derivatives, and specialty chemicals, which are used to make household cleaning products and pharmaceuticals. The agrochemicals segment sells pesticides, fungicides, and herbicides to the agricultural industry. The trading segment offers chemicals, synthetic resins, and industrial machineries and devices. The company generates additional revenue from its minor segments: transportation, warehousing, and construction services. These segments are engaged in the transportation and warehousing of chemical products, as well as in plant construction and civil engineering services.
75GF Score
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