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Arakawa Chemical IndustriesTSE:4968 -10.33%62 Return-on-Tangible-Equity is 4.98% as of Mar. 2026, which is 28% above its 10-year median of 3.89. GuruFocus rates TSE:4968 with a GF Score™ of 62/100 and a GF Value™ of 円1,216.93 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 1,570 Chemicals companies, Arakawa Chemical Industries ranks worse than 61.15% 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. Arakawa Chemical Industries's annualized net income for the quarter that ended in Mar. 2026 was 円2,954 Mil. Arakawa Chemical Industries's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円59,282 Mil. Therefore, Arakawa Chemical Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.98%.
The historical rank and industry rank for Arakawa Chemical Industries's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4968'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -9.01 Med: 3.89 Max: 7.3
Current: 3.76
During the past 13 years, Arakawa Chemical Industries's highest Return-on-Tangible-Equity was 7.30%. The lowest was -9.01%. And the median was 3.89%.
TSE:4968's Return-on-Tangible-Equity is ranked worse than 61.15% of 1570
companies
in the Chemicals industry
Industry Median: 5.77
vs TSE:4968: 3.76
Arakawa Chemical Industries (TSE:4968) 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.
Arakawa Chemical Industries Return-on-Tangible-Equity Related Terms
Arakawa Chemical Industries 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.
Arakawa Chemical Industries Return-on-Tangible-Equity Chart
TSE:4968 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Arakawa Chemical Industries'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.
Arakawa Chemical Industries Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Arakawa Chemical Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arakawa Chemical Industries'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 4.98% mean?
Arakawa Chemical Industries (TSE:4968) has a Return-on-Tangible-Equity of 4.98% 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 Arakawa Chemical Industries and its competitors. This is 28% above median its historical median of 3.89. According to the industry distribution chart, Arakawa Chemical Industries ranks #960 out of 1570 companies in the Chemicals industry, placing it in the top 61.1%.
Is Arakawa Chemical Industries' Return-on-Tangible-Equity too high?
Arakawa Chemical Industries' current Return-on-Tangible-Equity of 4.98% is 28% above median its 10-year median of 3.89. The Chemicals industry median Return-on-Tangible-Equity is 5.77. Arakawa Chemical Industries' value of 4.98% is 13.7% below this industry median. Based on the distribution chart, Arakawa Chemical Industries ranks #960 out of 1570 companies in the Chemicals industry, which is below the industry midpoint. Overall, Arakawa Chemical Industries has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arakawa Chemical Industries' Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Arakawa Chemical Industries ranks #960 out of 1570 companies for Return-on-Tangible-Equity. This places Arakawa Chemical Industries in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.77. Arakawa Chemical Industries' value of 4.98% is 13.7% below this benchmark. While the company's 10-year median is 3.89 vs. the industry median of 5.77, Arakawa Chemical Industries 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 5.77, 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. Arakawa Chemical Industries's current Return-on-Tangible-Equity of 4.98% is 13.7% 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 Arakawa Chemical Industries 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. Arakawa Chemical Industries's current Return-on-Tangible-Equity is 4.98%, which is 28% above median its own 10-year median of 3.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arakawa Chemical Industries stock overvalued right now?
Based on GuruFocus' analysis, Arakawa Chemical Industries (TSE:4968) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,216.93, compared to a current price of 円2,161.00 — trading 77.6% above its estimated fair value. The current Return-on-Tangible-Equity is 4.98%, which is 28% above median its 10-year median of 3.89 and 13.7% below the Chemicals industry median of 5.77. Arakawa Chemical Industries' overall GF Score™ is 62/100 with 11 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 Arakawa Chemical Industries (TSE:4968), the current Return-on-Tangible-Equity is 4.98% 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 Arakawa Chemical Industries (TSE:4968) Overvalued in 2026?
Based on GuruFocus' analysis, Arakawa Chemical Industries stock appears to be overvalued.
The current stock price of 円2,161.00 is trading 77.6% above its estimated GF Value™ of 円1,216.93.
GuruFocus considers Arakawa Chemical Industries to be Significantly Overvalued.
Key valuation signals for TSE:4968:
Return-on-Tangible-Equity: 4.98% (28% above median its 10-year median of 3.89)
GF Value™: 円1,216.93 vs. price of 円2,161.00 (77.6% above fair value)
Industry Position: 13.7% below the Chemicals median (#960 of 1570)
No single metric tells the full story. See the TSE:4968 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arakawa Chemical Industries Ltd is engaged in the production and sales of paper chemicals, resins for printing inks, resins for adhesives/adhesives, and intermediates for electronic materials. It manufactures various paper chemicals including water-repellents, sizing agents, paper surface improving agents, and paper strengthening, and other types of papers. It also provides printing inks for offset printing; book (magazine)-gravures and food-package-gravures. It also offers electronic materials, including rosins for use as raw material of chemicals and electronic components.
62GF Score
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