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Toho Chemical Industry CoTSE:4409 +0.54%60 Return-on-Tangible-Equity is 9.37% as of Mar. 2026, which is 19% above its 10-year median of 7.90. GuruFocus rates TSE:4409 with a GF Score™ of 60/100 and a GF Value™ of 円626.94 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,570 Chemicals companies, Toho Chemical Industry Co ranks better than 57.64% 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. Toho Chemical Industry Co's annualized net income for the quarter that ended in Mar. 2026 was 円2,010 Mil. Toho Chemical Industry Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円21,459 Mil. Therefore, Toho Chemical Industry Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 9.37%.
The historical rank and industry rank for Toho Chemical Industry Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4409'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.18 Med: 7.9 Max: 16.68
Current: 7.29
During the past 13 years, Toho Chemical Industry Co's highest Return-on-Tangible-Equity was 16.68%. The lowest was 3.18%. And the median was 7.90%.
TSE:4409's Return-on-Tangible-Equity is ranked better than 57.64% of 1570
companies
in the Chemicals industry
Industry Median: 5.77
vs TSE:4409: 7.29
Toho Chemical Industry Co (TSE:4409) 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.
Toho Chemical Industry Co Return-on-Tangible-Equity Related Terms
Toho Chemical Industry Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Toho Chemical Industry 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.
Toho Chemical Industry Co Return-on-Tangible-Equity Chart
TSE:4409 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Toho 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.
Toho Chemical Industry Co Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Toho Chemical Industry Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Toho 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 (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 9.37% mean?
Toho Chemical Industry Co (TSE:4409) has a Return-on-Tangible-Equity of 9.37% 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 Toho Chemical Industry Co and its competitors. This is 19% above median its historical median of 7.90. Over the past decade, Toho Chemical Industry Co's Return-on-Tangible-Equity has ranged from 3.18 to 16.68. According to the industry distribution chart, Toho Chemical Industry Co ranks #665 out of 1570 companies in the Chemicals industry, placing it in the top 42.4%.
Is Toho Chemical Industry Co's Return-on-Tangible-Equity too high?
Toho Chemical Industry Co's current Return-on-Tangible-Equity of 9.37% is 19% above median its 10-year median of 7.90. Over the past 10 years, this metric has ranged from a low of 3.18 to a high of 16.68. The Chemicals industry median Return-on-Tangible-Equity is 5.77. Toho Chemical Industry Co's value of 9.37% is 62.4% above this industry median. Based on the distribution chart, Toho Chemical Industry Co ranks #665 out of 1570 companies in the Chemicals industry, which is above the industry midpoint. Overall, Toho Chemical Industry Co has a GF Score™ of 60/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toho Chemical Industry Co's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Toho Chemical Industry Co ranks #665 out of 1570 companies for Return-on-Tangible-Equity. This puts Toho Chemical Industry Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.77. Toho Chemical Industry Co's value of 9.37% is 62.4% above this benchmark. Historically, Toho Chemical Industry Co's own Return-on-Tangible-Equity has ranged from 3.18 to 16.68 over the past decade. While the company's 10-year median is 7.90 vs. the industry median of 5.77, Toho 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 5.77, 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. Toho Chemical Industry Co's current Return-on-Tangible-Equity of 9.37% is 62.4% 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 Toho Chemical Industry 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. Toho Chemical Industry Co's current Return-on-Tangible-Equity is 9.37%, which is 19% above median its own 10-year median of 7.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toho Chemical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Toho Chemical Industry Co (TSE:4409) is currently considered Modestly Overvalued. The stock's GF Value™ is 円626.94, compared to a current price of 円749.00 — trading 19.5% above its estimated fair value. The current Return-on-Tangible-Equity is 9.37%, which is 19% above median its 10-year median of 7.90 and 62.4% above the Chemicals industry median of 5.77. Toho Chemical Industry Co's overall GF Score™ is 60/100 with 6 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 Toho Chemical Industry Co (TSE:4409), the current Return-on-Tangible-Equity is 9.37% 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 Toho Chemical Industry Co (TSE:4409) Overvalued in 2026?
Based on GuruFocus' analysis, Toho Chemical Industry Co stock appears to be overvalued.
The current stock price of 円749.00 is trading 19.5% above its estimated GF Value™ of 円626.94.
GuruFocus considers Toho Chemical Industry Co to be Modestly Overvalued.
Key valuation signals for TSE:4409:
Return-on-Tangible-Equity: 9.37% (19% above median its 10-year median of 7.90)
GF Value™: 円626.94 vs. price of 円749.00 (19.5% above fair value)
Industry Position: 62.4% above the Chemicals median (#665 of 1570)
No single metric tells the full story. See the TSE:4409 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toho Chemical Industry Co Ltd is engaged in the chemical business. Its product lines are surfactants, specialty chemicals, resins, and industrial chemicals. Some of its products are chemicals for textiles, detergents, pharmaceutical formulations, and others. The company serves a range of industries from daily consumables to high-tech products industries.
60GF Score
Get the complete analysis for TSE:4409
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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