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Nihon Kagakungyo CoTSE:4094 +0.68%64 Return-on-Tangible-Equity is 4.16% as of Mar. 2026, which is 23% below its 10-year median of 5.40. GuruFocus rates TSE:4094 with a GF Score™ of 64/100 and a GF Value™ of 円1,859.61 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,570 Chemicals companies, Nihon Kagakungyo Co ranks worse than 55.86% 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. Nihon Kagakungyo Co's annualized net income for the quarter that ended in Mar. 2026 was 円2,056 Mil. Nihon Kagakungyo Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円49,417 Mil. Therefore, Nihon Kagakungyo Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.16%.
The historical rank and industry rank for Nihon Kagakungyo Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4094'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.93 Med: 5.4 Max: 7.97
Current: 4.71
During the past 13 years, Nihon Kagakungyo Co's highest Return-on-Tangible-Equity was 7.97%. The lowest was 3.93%. And the median was 5.40%.
TSE:4094's Return-on-Tangible-Equity is ranked worse than 55.86% of 1570
companies
in the Chemicals industry
Industry Median: 5.77
vs TSE:4094: 4.71
Nihon Kagakungyo Co (TSE:4094) 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.
Nihon Kagakungyo Co Return-on-Tangible-Equity Related Terms
Nihon Kagakungyo Co Return-on-Tangible-Equity Historical Data
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The historical data trend for Nihon Kagakungyo 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.
Nihon Kagakungyo Co Return-on-Tangible-Equity Chart
TSE:4094 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Nihon Kagakungyo 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.
Nihon Kagakungyo Co Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nihon Kagakungyo Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nihon Kagakungyo 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 4.16% mean?
Nihon Kagakungyo Co (TSE:4094) has a Return-on-Tangible-Equity of 4.16% 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 Nihon Kagakungyo Co and its competitors. This is 23% below median its historical median of 5.40. Over the past decade, Nihon Kagakungyo Co's Return-on-Tangible-Equity has ranged from 3.93 to 7.97. According to the industry distribution chart, Nihon Kagakungyo Co ranks #877 out of 1570 companies in the Chemicals industry, placing it in the top 55.9%.
Is Nihon Kagakungyo Co's Return-on-Tangible-Equity too high?
Nihon Kagakungyo Co's current Return-on-Tangible-Equity of 4.16% is 23% below median its 10-year median of 5.40. Over the past 10 years, this metric has ranged from a low of 3.93 to a high of 7.97. The Chemicals industry median Return-on-Tangible-Equity is 5.77. Nihon Kagakungyo Co's value of 4.16% is 27.9% below this industry median. Based on the distribution chart, Nihon Kagakungyo Co ranks #877 out of 1570 companies in the Chemicals industry, which is below the industry midpoint. Overall, Nihon Kagakungyo Co has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Kagakungyo Co's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Nihon Kagakungyo Co ranks #877 out of 1570 companies for Return-on-Tangible-Equity. This places Nihon Kagakungyo Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.77. Nihon Kagakungyo Co's value of 4.16% is 27.9% below this benchmark. Historically, Nihon Kagakungyo Co's own Return-on-Tangible-Equity has ranged from 3.93 to 7.97 over the past decade. While the company's 10-year median is 5.40 vs. the industry median of 5.77, Nihon Kagakungyo Co 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 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. Nihon Kagakungyo Co's current Return-on-Tangible-Equity of 4.16% is 27.9% 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 Nihon Kagakungyo 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. Nihon Kagakungyo Co's current Return-on-Tangible-Equity is 4.16%, which is 23% below median its own 10-year median of 5.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Kagakungyo Co stock overvalued right now?
Based on GuruFocus' analysis, Nihon Kagakungyo Co (TSE:4094) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,859.61, compared to a current price of 円2,084.00 — trading 12.1% above its estimated fair value. The current Return-on-Tangible-Equity is 4.16%, which is 23% below median its 10-year median of 5.40 and 27.9% below the Chemicals industry median of 5.77. Nihon Kagakungyo Co's overall GF Score™ is 64/100 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 Nihon Kagakungyo Co (TSE:4094), the current Return-on-Tangible-Equity is 4.16% 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 Nihon Kagakungyo Co (TSE:4094) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Kagakungyo Co stock appears to be overvalued.
The current stock price of 円2,084.00 is trading 12.1% above its estimated GF Value™ of 円1,859.61.
GuruFocus considers Nihon Kagakungyo Co to be Modestly Overvalued.
Key valuation signals for TSE:4094:
Return-on-Tangible-Equity: 4.16% (23% below median its 10-year median of 5.40)
GF Value™: 円1,859.61 vs. price of 円2,084.00 (12.1% above fair value)
Industry Position: 27.9% below the Chemicals median (#877 of 1570)
No single metric tells the full story. See the TSE:4094 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Kagaku Sangyo Co Ltd is a Japan-based chemical manufacturer. Its business activities are divided into two divisions including Chemical business which is engaged in production and sales of organic and inorganic industrial chemicals. And Building Materials business which offers metal products. Its chemical product offerings include copper compounds, tin compounds, nickel compounds, cobalt compounds, metallic soaps, among others. The building materials division offers products including plancier air vent, nent roof, finish hardware, mail post, approach stainless steel, handrails, heat exchanger, metal eaves fascia and cold rolling forming hardware.
64GF Score
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