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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. Kawaguchi Chemical Industry Co's annualized net income for the quarter that ended in May. 2026 was 円419 Mil. Kawaguchi Chemical Industry Co's average shareholder tangible equity for the quarter that ended in May. 2026 was 円3,205 Mil. Therefore, Kawaguchi Chemical Industry Co's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2026 was 13.06%.
The historical rank and industry rank for Kawaguchi Chemical Industry Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4361'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.29 Med: 9.72 Max: 13.41
Current: 11.99
During the past 13 years, Kawaguchi Chemical Industry Co's highest Return-on-Tangible-Equity was 13.41%. The lowest was 2.29%. And the median was 9.72%.
TSE:4361's Return-on-Tangible-Equity is ranked better than 74.68% of 1568
companies
in the Chemicals industry
Industry Median: 5.785
vs TSE:4361: 11.99
Kawaguchi Chemical Industry Co (TSE:4361) 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.
Kawaguchi Chemical Industry Co Return-on-Tangible-Equity Related Terms
Kawaguchi Chemical Industry Co Return-on-Tangible-Equity Historical Data
* 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.
Kawaguchi Chemical Industry Co Return-on-Tangible-Equity Chart
TSE:4361 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Kawaguchi Chemical Industry 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.
Kawaguchi Chemical Industry Co Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kawaguchi Chemical Industry Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kawaguchi Chemical Industry 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 (May. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.06% mean?
Kawaguchi Chemical Industry Co (TSE:4361) has a Return-on-Tangible-Equity of 13.06% as of May. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Kawaguchi Chemical Industry Co and its competitors. This is 34% above median its historical median of 9.72. Over the past decade, Kawaguchi Chemical Industry Co's Return-on-Tangible-Equity has ranged from 2.29 to 13.41. According to the industry distribution chart, Kawaguchi Chemical Industry Co ranks #397 out of 1568 companies in the Chemicals industry, placing it in the top 25.3%.
Is Kawaguchi Chemical Industry Co's Return-on-Tangible-Equity too high?
Kawaguchi Chemical Industry Co's current Return-on-Tangible-Equity of 13.06% is 34% above median its 10-year median of 9.72. Over the past 10 years, this metric has ranged from a low of 2.29 to a high of 13.41. The Chemicals industry median Return-on-Tangible-Equity is 5.79. Kawaguchi Chemical Industry Co's value of 13.06% is 125.8% above this industry median. Based on the distribution chart, Kawaguchi Chemical Industry Co ranks #397 out of 1568 companies in the Chemicals industry, which is above the industry midpoint. Overall, Kawaguchi Chemical Industry Co has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kawaguchi Chemical Industry Co's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Kawaguchi Chemical Industry Co ranks #397 out of 1568 companies for Return-on-Tangible-Equity. This puts Kawaguchi Chemical Industry Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.79. Kawaguchi Chemical Industry Co's value of 13.06% is 125.8% above this benchmark. Historically, Kawaguchi Chemical Industry Co's own Return-on-Tangible-Equity has ranged from 2.29 to 13.41 over the past decade. While the company's 10-year median is 9.72 vs. the industry median of 5.79, Kawaguchi Chemical Industry 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 5.79, 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. Kawaguchi Chemical Industry Co's current Return-on-Tangible-Equity of 13.06% is 125.8% 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 Kawaguchi Chemical Industry 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. Kawaguchi Chemical Industry Co's current Return-on-Tangible-Equity is 13.06%, which is 34% above median its own 10-year median of 9.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawaguchi Chemical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Kawaguchi Chemical Industry Co (TSE:4361) is currently considered Fairly Valued. The stock's GF Value™ is 円1,430.25, compared to a current price of 円1,496.00 — trading 4.6% above its estimated fair value. The current Return-on-Tangible-Equity is 13.06%, which is 34% above median its 10-year median of 9.72 and 125.8% above the Chemicals industry median of 5.79. Kawaguchi Chemical Industry Co's overall GF Score™ is 74/100 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 Kawaguchi Chemical Industry Co (TSE:4361), the current Return-on-Tangible-Equity is 13.06% as of May. 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 Kawaguchi Chemical Industry Co (TSE:4361) Overvalued in 2026?
Based on GuruFocus' analysis, Kawaguchi Chemical Industry Co stock appears to be overvalued.
The current stock price of 円1,496.00 is trading 4.6% above its estimated GF Value™ of 円1,430.25.
GuruFocus considers Kawaguchi Chemical Industry Co to be Fairly Valued.
Key valuation signals for TSE:4361:
Return-on-Tangible-Equity: 13.06% (34% above median its 10-year median of 9.72)
GF Value™: 円1,430.25 vs. price of 円1,496.00 (4.6% above fair value)
Industry Position: 125.8% above the Chemicals median (#397 of 1568)
No single metric tells the full story. See the TSE:4361 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawaguchi Chemical Industry Co Business Description
Kawaguchi Chemical Industry Co Ltd is the Japanese manufacturer of organic-rubber chemical products. The company's product offering includes organic rubber chemicals, resin chemicals, pharmaceutical intermediates, agricultural chemical intermediates, pigment intermediates, pharmaceutical agents for the environment, photographic chemicals and lubricant additives.
74GF Score
Get the complete analysis for TSE:4361
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