Dainichiseika Color & Chemicals Mfg Co (TSE:4116) Return-on-Tangible-Equity: 4.23% (As of Mar. 2026) — 30% Below Median

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TSE:4116 Dainichiseika Color & Chemicals Mfg Co Ltd TSE:4116
66 GF Score
Price 円1,089.00
GF Value 円781.82
Valuation Significantly Overvalued
! 2 Warning Signs
View Full Analysis

What is Dainichiseika Color & Chemicals Mfg Co Return-on-Tangible-Equity?

Dainichiseika Color & Chemicals Mfg Co TSE:4116 -0.27% 66 Return-on-Tangible-Equity is 4.23% as of Mar. 2026, which is 30% below its 10-year median of 6.07. GuruFocus rates TSE:4116 with a GF Score™ of 66/100 and a GF Value™ of 円781.82 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,568 Chemicals companies, Dainichiseika Color & Chemicals Mfg Co ranks better than 52.36% 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. Dainichiseika Color & Chemicals Mfg Co's annualized net income for the quarter that ended in Mar. 2026 was 円5,608 Mil. Dainichiseika Color & Chemicals Mfg Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円132,716 Mil. Therefore, Dainichiseika Color & Chemicals Mfg Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.23%.

The historical rank and industry rank for Dainichiseika Color & Chemicals Mfg Co's Return-on-Tangible-Equity or its related term are showing as below:

TSE:4116' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.85   Med: 6.07   Max: 12.74
Current: 6.28

During the past 13 years, Dainichiseika Color & Chemicals Mfg Co's highest Return-on-Tangible-Equity was 12.74%. The lowest was 1.85%. And the median was 6.07%.

TSE:4116's Return-on-Tangible-Equity is ranked better than
52.36% of 1568 companies
in the Chemicals industry
Industry Median: 5.785 vs TSE:4116: 6.28

Dainichiseika Color & Chemicals Mfg Co  (TSE:4116) 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.


Dainichiseika Color & Chemicals Mfg Co Return-on-Tangible-Equity Related Terms


Dainichiseika Color & Chemicals Mfg Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Dainichiseika Color & Chemicals Mfg 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.

Dainichiseika Color & Chemicals Mfg Co Return-on-Tangible-Equity Chart

Dainichiseika Color & Chemicals Mfg Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.98 1.85 3.24 8.49 6.16

Dainichiseika Color & Chemicals Mfg Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 Premium Member Only 0.44 7.91 4.02 9.17 4.23

TSE:4116 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison

For the Specialty Chemicals subindustry, Dainichiseika Color & Chemicals Mfg 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.


Dainichiseika Color & Chemicals Mfg Co Return-on-Tangible-Equity vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Dainichiseika Color & Chemicals Mfg Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Dainichiseika Color & Chemicals Mfg Co's Return-on-Tangible-Equity falls into.


TSE:4116
66GF Score
Dainichiseika Color & Chemicals Mfg Co Ltd TSE:4116
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Dainichiseika Color & Chemicals Mfg Co Return-on-Tangible-Equity Calculation

Dainichiseika Color & Chemicals Mfg Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=8101/( (126764+136464 )/ 2 )
=8101/131614
=6.16 %

Dainichiseika Color & Chemicals Mfg Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=5608/( (128967+136464)/ 2 )
=5608/132715.5
=4.23 %

* 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 4.23% mean?
Dainichiseika Color & Chemicals Mfg Co (TSE:4116) has a Return-on-Tangible-Equity of 4.23% 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 Dainichiseika Color & Chemicals Mfg Co and its competitors. This is 30% below median its historical median of 6.07. Over the past decade, Dainichiseika Color & Chemicals Mfg Co's Return-on-Tangible-Equity has ranged from 1.85 to 12.74. According to the industry distribution chart, Dainichiseika Color & Chemicals Mfg Co ranks #747 out of 1568 companies in the Chemicals industry, placing it in the top 47.6%.
Is Dainichiseika Color & Chemicals Mfg Co's Return-on-Tangible-Equity too high?
Dainichiseika Color & Chemicals Mfg Co's current Return-on-Tangible-Equity of 4.23% is 30% below median its 10-year median of 6.07. Over the past 10 years, this metric has ranged from a low of 1.85 to a high of 12.74. The Chemicals industry median Return-on-Tangible-Equity is 5.79. Dainichiseika Color & Chemicals Mfg Co's value of 4.23% is 26.9% below this industry median. Based on the distribution chart, Dainichiseika Color & Chemicals Mfg Co ranks #747 out of 1568 companies in the Chemicals industry, which is above the industry midpoint. Overall, Dainichiseika Color & Chemicals Mfg Co has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dainichiseika Color & Chemicals Mfg Co's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Dainichiseika Color & Chemicals Mfg Co ranks #747 out of 1568 companies for Return-on-Tangible-Equity. This puts Dainichiseika Color & Chemicals Mfg Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.79. Dainichiseika Color & Chemicals Mfg Co's value of 4.23% is 26.9% below this benchmark. Historically, Dainichiseika Color & Chemicals Mfg Co's own Return-on-Tangible-Equity has ranged from 1.85 to 12.74 over the past decade. While the company's 10-year median is 6.07 vs. the industry median of 5.79, Dainichiseika Color & Chemicals Mfg 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 5.79, based on 1,568 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. Dainichiseika Color & Chemicals Mfg Co's current Return-on-Tangible-Equity of 4.23% is 26.9% 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 Dainichiseika Color & Chemicals Mfg Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dainichiseika Color & Chemicals Mfg Co's current Return-on-Tangible-Equity is 4.23%, which is 30% below median its own 10-year median of 6.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dainichiseika Color & Chemicals Mfg Co stock overvalued right now?
Based on GuruFocus' analysis, Dainichiseika Color & Chemicals Mfg Co (TSE:4116) is currently considered Significantly Overvalued. The stock's GF Value™ is 円781.82, compared to a current price of 円1,089.00 — trading 39.3% above its estimated fair value. The current Return-on-Tangible-Equity is 4.23%, which is 30% below median its 10-year median of 6.07 and 26.9% below the Chemicals industry median of 5.79. Dainichiseika Color & Chemicals Mfg Co's overall GF Score™ is 66/100 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 Dainichiseika Color & Chemicals Mfg Co (TSE:4116), the current Return-on-Tangible-Equity is 4.23% 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 Dainichiseika Color & Chemicals Mfg Co (TSE:4116) Overvalued in 2026?

Based on GuruFocus' analysis, Dainichiseika Color & Chemicals Mfg Co stock appears to be overvalued. The current stock price of 円1,089.00 is trading 39.3% above its estimated GF Value™ of 円781.82. GuruFocus considers Dainichiseika Color & Chemicals Mfg Co to be Significantly Overvalued.

Key valuation signals for TSE:4116:

  • Return-on-Tangible-Equity: 4.23% (30% below median its 10-year median of 6.07)
  • GF Value™: 円781.82 vs. price of 円1,089.00 (39.3% above fair value)
  • GF Score™: 66/100 with 2 warning signs
  • Industry Position: 26.9% below the Chemicals median (#747 of 1568)

No single metric tells the full story. See the TSE:4116 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Dainichiseika Color & Chemicals Mfg Co Business Description

Address 1-7-6, Nihonbashi-Bakurocho, Chuo-ku, Tokyo, JPN, 103-8383
Dainichiseika Color & Chemicals Mfg Co Ltd manufactures and sells pigments, plastics, and inks in five segments based on product type. The polymers segment, which generates the majority of revenue, sells plastic resins used to produce interior components for automobiles, polyurethane coatings and adhesives, and textile coatings. The pigments segment sells inorganic pigments and colorants. The prepared colors and chemicals segment sells colorants used in plastics and coatings. The printing inks segment sells inks for printing and gravure. The other segment leases real estate properties.
66GF Score

Get the complete analysis for TSE:4116

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

円1,089.00
Price
円781.82
GF Value