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Showa Chemical Industry CoTSE:4990 +0.20%41 Return-on-Tangible-Equity is 2.89% as of Mar. 2026, which is 63% below its 10-year median of 7.73. GuruFocus rates TSE:4990 with a GF Score™ of 41/100. The stock has 3 warning signs investors should review. Among 1,575 Chemicals companies, Showa Chemical Industry Co ranks worse than 50.29% 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. Showa Chemical Industry Co's annualized net income for the quarter that ended in Mar. 2026 was 円262 Mil. Showa Chemical Industry Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円9,090 Mil. Therefore, Showa Chemical Industry Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 2.89%.
The historical rank and industry rank for Showa Chemical Industry Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4990'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.29 Med: 7.73 Max: 11.71
Current: 6.78
During the past 13 years, Showa Chemical Industry Co's highest Return-on-Tangible-Equity was 11.71%. The lowest was 5.29%. And the median was 7.73%.
TSE:4990's Return-on-Tangible-Equity is ranked worse than 50.29% of 1575
companies
in the Chemicals industry
Industry Median: 6.84
vs TSE:4990: 6.78
Showa Chemical Industry Co (TSE:4990) 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.
Showa Chemical Industry Co Return-on-Tangible-Equity Related Terms
Showa 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.
Showa Chemical Industry Co Return-on-Tangible-Equity Chart
TSE:4990 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Showa 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.
Showa Chemical Industry Co Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Showa Chemical Industry Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Showa 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 four times the quarterly (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 2.89% mean?
Showa Chemical Industry Co (TSE:4990) has a Return-on-Tangible-Equity of 2.89% 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 Showa Chemical Industry Co and its competitors. This is 63% below median its historical median of 7.73. Over the past decade, Showa Chemical Industry Co's Return-on-Tangible-Equity has ranged from 5.29 to 11.71. According to the industry distribution chart, Showa Chemical Industry Co ranks #792 out of 1575 companies in the Chemicals industry, placing it in the top 50.3%.
Is Showa Chemical Industry Co's Return-on-Tangible-Equity too high?
Showa Chemical Industry Co's current Return-on-Tangible-Equity of 2.89% is 63% below median its 10-year median of 7.73. Over the past 10 years, this metric has ranged from a low of 5.29 to a high of 11.71. The Chemicals industry median Return-on-Tangible-Equity is 6.84. Showa Chemical Industry Co's value of 2.89% is 57.7% below this industry median. Based on the distribution chart, Showa Chemical Industry Co ranks #792 out of 1575 companies in the Chemicals industry, which is below the industry midpoint. Overall, Showa Chemical Industry Co has a GF Score™ of 41/100, reflecting its overall financial health beyond just this single metric.
How does Showa Chemical Industry Co's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Showa Chemical Industry Co ranks #792 out of 1575 companies for Return-on-Tangible-Equity. This places Showa Chemical Industry Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.84. Showa Chemical Industry Co's value of 2.89% is 57.7% below this benchmark. Historically, Showa Chemical Industry Co's own Return-on-Tangible-Equity has ranged from 5.29 to 11.71 over the past decade. While the company's 10-year median is 7.73 vs. the industry median of 6.84, Showa Chemical Industry 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 6.84, based on 1,575 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. Showa Chemical Industry Co's current Return-on-Tangible-Equity of 2.89% is 57.7% 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 Showa Chemical Industry Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 6.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Showa Chemical Industry Co's current Return-on-Tangible-Equity is 2.89%, which is 63% below median its own 10-year median of 7.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Showa Chemical Industry Co stock overvalued right now?
Showa Chemical Industry Co (TSE:4990) has a current Return-on-Tangible-Equity of 2.89%. The current Return-on-Tangible-Equity is 2.89%, which is 63% below median its 10-year median of 7.73 and 57.7% below the Chemicals industry median of 6.84. Showa Chemical Industry Co's overall GF Score™ is 41/100 with 3 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 Showa Chemical Industry Co (TSE:4990), the current Return-on-Tangible-Equity is 2.89% 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.
Showa Chemical Industry Co Ltd is engaged in the development and manufacturing of diatomite and perlite. The product range consists of radiolite diatomite filter aids and functional additives, and topco perlite products. Its products are used in a widening spectrum of applications from chemical manufacturing, pool water treatment, pharmaceuticals, incinerator exhaust filtration, the manufacture of building materials, silicone resins, and soil conditioners. It is operating a diatomite plant in Jilin Province, Northeast China.
41GF Score
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