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Sumitomo Rubber IndustriesTSE:5110 +1.36%66 Return-on-Tangible-Equity is 6.88% as of Mar. 2026, which is 10% below its 10-year median of 7.63. GuruFocus rates TSE:5110 with a GF Score™ of 66/100 and a GF Value™ of 円1,437.03 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,282 Vehicles & Parts companies, Sumitomo Rubber Industries ranks better than 72.62% 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. Sumitomo Rubber Industries's annualized net income for the quarter that ended in Mar. 2026 was 円34,260 Mil. Sumitomo Rubber Industries's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円497,736 Mil. Therefore, Sumitomo Rubber Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 6.88%.
The historical rank and industry rank for Sumitomo Rubber Industries's Return-on-Tangible-Equity or its related term are showing as below:
TSE:5110'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.08 Med: 7.63 Max: 14.33
Current: 14.33
During the past 13 years, Sumitomo Rubber Industries's highest Return-on-Tangible-Equity was 14.33%. The lowest was 2.08%. And the median was 7.63%.
TSE:5110's Return-on-Tangible-Equity is ranked better than 72.62% of 1282
companies
in the Vehicles & Parts industry
Industry Median: 7.545
vs TSE:5110: 14.33
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.
Sumitomo Rubber Industries Return-on-Tangible-Equity Related Terms
Sumitomo Rubber 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.
TSE:5110 vs ORLY, AZO: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, Sumitomo Rubber 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.
Sumitomo Rubber Industries Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sumitomo Rubber Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sumitomo Rubber 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 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 6.88% mean?
Sumitomo Rubber Industries (TSE:5110) has a Return-on-Tangible-Equity of 6.88% 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 Sumitomo Rubber Industries and its competitors. This is 10% below median its historical median of 7.63. Over the past decade, Sumitomo Rubber Industries' Return-on-Tangible-Equity has ranged from 2.08 to 14.33. According to the industry distribution chart, Sumitomo Rubber Industries ranks #351 out of 1282 companies in the Vehicles & Parts industry, placing it in the top 27.4%.
Is Sumitomo Rubber Industries' Return-on-Tangible-Equity too high?
Sumitomo Rubber Industries' current Return-on-Tangible-Equity of 6.88% is 10% below median its 10-year median of 7.63. Over the past 10 years, this metric has ranged from a low of 2.08 to a high of 14.33. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.55. Sumitomo Rubber Industries' value of 6.88% is 8.8% below this industry median. Based on the distribution chart, Sumitomo Rubber Industries ranks #351 out of 1282 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Sumitomo Rubber Industries has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Rubber Industries' Return-on-Tangible-Equity compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Sumitomo Rubber Industries ranks #351 out of 1282 companies for Return-on-Tangible-Equity. This puts Sumitomo Rubber Industries in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.55. Sumitomo Rubber Industries' value of 6.88% is 8.8% below this benchmark. Historically, Sumitomo Rubber Industries' own Return-on-Tangible-Equity has ranged from 2.08 to 14.33 over the past decade. While the company's 10-year median is 7.63 vs. the industry median of 7.55, Sumitomo Rubber 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.55, based on 1,282 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. Sumitomo Rubber Industries's current Return-on-Tangible-Equity of 6.88% is 8.8% 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 Sumitomo Rubber Industries and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Rubber Industries's current Return-on-Tangible-Equity is 6.88%, which is 10% below median its own 10-year median of 7.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Rubber Industries stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Rubber Industries (TSE:5110) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,437.03, compared to a current price of 円2,271.00 — trading 58% above its estimated fair value. The current Return-on-Tangible-Equity is 6.88%, which is 10% below median its 10-year median of 7.63 and 8.8% below the Vehicles & Parts industry median of 7.55. Sumitomo Rubber Industries' overall GF Score™ is 66/100 with 7 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 Sumitomo Rubber Industries (TSE:5110), the current Return-on-Tangible-Equity is 6.88% 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 Sumitomo Rubber Industries (TSE:5110) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Rubber Industries stock appears to be overvalued.
The current stock price of 円2,271.00 is trading 58% above its estimated GF Value™ of 円1,437.03.
GuruFocus considers Sumitomo Rubber Industries to be Significantly Overvalued.
Key valuation signals for TSE:5110:
Return-on-Tangible-Equity: 6.88% (10% below median its 10-year median of 7.63)
GF Value™: 円1,437.03 vs. price of 円2,271.00 (58% above fair value)
Industry Position: 8.8% below the Vehicles & Parts median (#351 of 1282)
No single metric tells the full story. See the TSE:5110 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Rubber Industries Ltd makes and sells rubber tires, sports equipment, and other products in three segments based on product type. The tire segment, which generates the majority of revenue, sells rubber tires for automobiles and motorcycles under the Dunlop and Falken brand names. The sports segment sells golf, tennis, and fitness equipment under the Srixon, XXIO, Cleveland, and Dunlop brand names. The industrial and other products segment sells rubber parts for printers, artificial turf for sporting use, floor coating materials, portable ramps, gloves, tubes, and valves. The majority of revenue comes from Japan than any other region.
66GF Score
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