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New Japan Chemical CoTSE:4406 +1.52%60 Return-on-Tangible-Equity is 3.75% as of Mar. 2026, which is 18% above its 10-year median of 3.18. GuruFocus rates TSE:4406 with a GF Score™ of 60/100 and a GF Value™ of 円199.55 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,567 Chemicals companies, New Japan Chemical Co ranks worse than 63.43% 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. New Japan Chemical Co's annualized net income for the quarter that ended in Mar. 2026 was 円718 Mil. New Japan Chemical Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円19,127 Mil. Therefore, New Japan Chemical Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 3.75%.
The historical rank and industry rank for New Japan Chemical Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4406'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.38 Med: 3.18 Max: 5.22
Current: 3.2
During the past 13 years, New Japan Chemical Co's highest Return-on-Tangible-Equity was 5.22%. The lowest was -4.38%. And the median was 3.18%.
TSE:4406's Return-on-Tangible-Equity is ranked worse than 63.43% of 1567
companies
in the Chemicals industry
Industry Median: 5.81
vs TSE:4406: 3.20
New Japan Chemical Co (TSE:4406) 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.
New Japan Chemical Co Return-on-Tangible-Equity Related Terms
New Japan Chemical Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for New Japan 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.
New Japan Chemical Co Return-on-Tangible-Equity Chart
TSE:4406 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, New Japan 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.
New Japan Chemical Co Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, New Japan Chemical Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where New Japan 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 3.75% mean?
New Japan Chemical Co (TSE:4406) has a Return-on-Tangible-Equity of 3.75% 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 New Japan Chemical Co and its competitors. This is 18% above median its historical median of 3.18. According to the industry distribution chart, New Japan Chemical Co ranks #994 out of 1567 companies in the Chemicals industry, placing it in the top 63.4%.
Is New Japan Chemical Co's Return-on-Tangible-Equity too high?
New Japan Chemical Co's current Return-on-Tangible-Equity of 3.75% is 18% above median its 10-year median of 3.18. The Chemicals industry median Return-on-Tangible-Equity is 5.81. New Japan Chemical Co's value of 3.75% is 35.5% below this industry median. Based on the distribution chart, New Japan Chemical Co ranks #994 out of 1567 companies in the Chemicals industry, which is below the industry midpoint. Overall, New Japan Chemical Co has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does New Japan Chemical Co's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, New Japan Chemical Co ranks #994 out of 1567 companies for Return-on-Tangible-Equity. This places New Japan Chemical Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.81. New Japan Chemical Co's value of 3.75% is 35.5% below this benchmark. While the company's 10-year median is 3.18 vs. the industry median of 5.81, New Japan Chemical 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 5.81, based on 1,567 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. New Japan Chemical Co's current Return-on-Tangible-Equity of 3.75% is 35.5% 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 New Japan Chemical Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Japan Chemical Co's current Return-on-Tangible-Equity is 3.75%, which is 18% above median its own 10-year median of 3.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Japan Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, New Japan Chemical Co (TSE:4406) is currently considered Fairly Valued. The stock's GF Value™ is 円199.55, compared to a current price of 円200.00 — trading 0.2% above its estimated fair value. The current Return-on-Tangible-Equity is 3.75%, which is 18% above median its 10-year median of 3.18 and 35.5% below the Chemicals industry median of 5.81. New Japan Chemical Co's overall GF Score™ is 60/100 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 New Japan Chemical Co (TSE:4406), the current Return-on-Tangible-Equity is 3.75% 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 New Japan Chemical Co (TSE:4406) Overvalued in 2026?
Based on GuruFocus' analysis, New Japan Chemical Co stock appears to be overvalued.
The current stock price of 円200.00 is trading 0.2% above its estimated GF Value™ of 円199.55.
GuruFocus considers New Japan Chemical Co to be Fairly Valued.
Key valuation signals for TSE:4406:
Return-on-Tangible-Equity: 3.75% (18% above median its 10-year median of 3.18)
GF Value™: 円199.55 vs. price of 円200.00 (0.2% above fair value)
Industry Position: 35.5% below the Chemicals median (#994 of 1567)
No single metric tells the full story. See the TSE:4406 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Japan Chemical Co Ltd is a Japan-based company engages in the production and sale of oleo-chemical and chemical products. It offers fatty acids, glycerol, higher alcohols, unsaturated alcohols, surfactants, plasticizers, functional products, and resin additives.
60GF Score
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