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Muromachi ChemicalsTSE:4885 78 Return-on-Tangible-Equity is 14.02% as of Feb. 2026, which is 17% below its 10-year median of 16.92. GuruFocus rates TSE:4885 with a GF Score™ of 78/100 and a GF Value™ of 円982.97 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,570 Chemicals companies, Muromachi Chemicals ranks better than 53.12% 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. Muromachi Chemicals's annualized net income for the quarter that ended in Feb. 2026 was 円375 Mil. Muromachi Chemicals's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円2,673 Mil. Therefore, Muromachi Chemicals's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 14.02%.
The historical rank and industry rank for Muromachi Chemicals's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4885'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.44 Med: 16.92 Max: 30.8
Current: 6.44
During the past 8 years, Muromachi Chemicals's highest Return-on-Tangible-Equity was 30.80%. The lowest was 6.44%. And the median was 16.92%.
TSE:4885's Return-on-Tangible-Equity is ranked better than 53.12% of 1570
companies
in the Chemicals industry
Industry Median: 5.77
vs TSE:4885: 6.44
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.
Muromachi Chemicals Return-on-Tangible-Equity Related Terms
Muromachi Chemicals Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Muromachi Chemicals'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.
TSE:4885 vs DOW: Return-on-Tangible-Equity Comparison
For the Chemicals subindustry, Muromachi Chemicals'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.
Muromachi Chemicals Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Muromachi Chemicals's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Muromachi Chemicals'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 four times the quarterly (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 14.02% mean?
Muromachi Chemicals (TSE:4885) has a Return-on-Tangible-Equity of 14.02% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Muromachi Chemicals and its competitors. This is 17% below median its historical median of 16.92. Over the past decade, Muromachi Chemicals' Return-on-Tangible-Equity has ranged from 6.44 to 30.80. According to the industry distribution chart, Muromachi Chemicals ranks #736 out of 1570 companies in the Chemicals industry, placing it in the top 46.9%.
Is Muromachi Chemicals' Return-on-Tangible-Equity too high?
Muromachi Chemicals' current Return-on-Tangible-Equity of 14.02% is 17% below median its 10-year median of 16.92. Over the past 10 years, this metric has ranged from a low of 6.44 to a high of 30.80. The Chemicals industry median Return-on-Tangible-Equity is 5.77. Muromachi Chemicals' value of 14.02% is 143% above this industry median. Based on the distribution chart, Muromachi Chemicals ranks #736 out of 1570 companies in the Chemicals industry, which is above the industry midpoint. Overall, Muromachi Chemicals has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Muromachi Chemicals' Return-on-Tangible-Equity compare to DOW?
According to the Chemicals industry distribution chart, Muromachi Chemicals ranks #736 out of 1570 companies for Return-on-Tangible-Equity. This puts Muromachi Chemicals in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.77. Muromachi Chemicals' value of 14.02% is 143% above this benchmark. Historically, Muromachi Chemicals' own Return-on-Tangible-Equity has ranged from 6.44 to 30.80 over the past decade. While the company's 10-year median is 16.92 vs. the industry median of 5.77, Muromachi Chemicals 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. Muromachi Chemicals's current Return-on-Tangible-Equity of 14.02% is 143% 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 Muromachi Chemicals 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. Muromachi Chemicals's current Return-on-Tangible-Equity is 14.02%, which is 17% below median its own 10-year median of 16.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muromachi Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Muromachi Chemicals (TSE:4885) is currently considered Fairly Valued. The stock's GF Value™ is 円982.97, compared to a current price of 円913.00 — trading 7.1% below its estimated fair value. The current Return-on-Tangible-Equity is 14.02%, which is 17% below median its 10-year median of 16.92 and 143% above the Chemicals industry median of 5.77. Muromachi Chemicals' overall GF Score™ is 78/100 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 Muromachi Chemicals (TSE:4885), the current Return-on-Tangible-Equity is 14.02% as of Feb. 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 Muromachi Chemicals (TSE:4885) Overvalued in 2026?
Based on GuruFocus' analysis, Muromachi Chemicals stock appears to be undervalued.
The current stock price of 円913.00 is trading 7.1% below its estimated GF Value™ of 円982.97.
GuruFocus considers Muromachi Chemicals to be Fairly Valued.
Key valuation signals for TSE:4885:
Return-on-Tangible-Equity: 14.02% (17% below median its 10-year median of 16.92)
GF Value™: 円982.97 vs. price of 円913.00 (7.1% below fair value)
Industry Position: 143% above the Chemicals median (#736 of 1570)
No single metric tells the full story. See the TSE:4885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muromachi Chemicals Inc is engaged in the production and distribution of pharmaceuticals, planning, production, and distribution of health foods, and distribution and processing of ion-exchange resin products. The Company has three reportable segments based on business type: Pharmaceuticals Business, Health Food Business, and Chemicals Business.
78GF Score
Get the complete analysis for TSE:4885
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