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VertexTSE:5290 -1.93%79 Return-on-Tangible-Equity is 48.22% as of Mar. 2026, which is 214% above its 10-year median of 15.34. GuruFocus rates TSE:5290 with a GF Score™ of 79/100 and a GF Value™ of 円1,291.40 (Fairly Valued). The stock has 1 warning sign investors should review. Among 397 Building Materials companies, Vertex ranks better than 92.95% 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. Vertex's annualized net income for the quarter that ended in Mar. 2026 was 円17,746 Mil. Vertex's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円36,801 Mil. Therefore, Vertex's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 48.22%.
The historical rank and industry rank for Vertex's Return-on-Tangible-Equity or its related term are showing as below:
TSE:5290'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.47 Med: 15.34 Max: 29
Current: 29
During the past 8 years, Vertex's highest Return-on-Tangible-Equity was 29.00%. The lowest was 10.47%. And the median was 15.34%.
TSE:5290's Return-on-Tangible-Equity is ranked better than 92.95% of 397
companies
in the Building Materials industry
Industry Median: 5.06
vs TSE:5290: 29.00
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.
Vertex Return-on-Tangible-Equity Related Terms
Vertex Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Vertex'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:5290 vs CRH, VMC, MLM: Return-on-Tangible-Equity Comparison
For the Building Materials subindustry, Vertex'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.
Vertex Return-on-Tangible-Equity vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Vertex's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Vertex'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 48.22% mean?
Vertex (TSE:5290) has a Return-on-Tangible-Equity of 48.22% 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 Vertex and its competitors. This is 214% above median its historical median of 15.34. Over the past decade, Vertex's Return-on-Tangible-Equity has ranged from 10.47 to 29.00. According to the industry distribution chart, Vertex ranks #28 out of 397 companies in the Building Materials industry, placing it in the top 7.1%.
Is Vertex's Return-on-Tangible-Equity too high?
Vertex's current Return-on-Tangible-Equity of 48.22% is 214% above median its 10-year median of 15.34. Over the past 10 years, this metric has ranged from a low of 10.47 to a high of 29.00. The Building Materials industry median Return-on-Tangible-Equity is 5.06. Vertex's value of 48.22% is 853% above this industry median. Based on the distribution chart, Vertex ranks #28 out of 397 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Vertex has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vertex's Return-on-Tangible-Equity compare to CRH and VMC?
According to the Building Materials industry distribution chart, Vertex ranks #28 out of 397 companies for Return-on-Tangible-Equity. This places Vertex in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.06. Vertex's value of 48.22% is 853% above this benchmark. Historically, Vertex's own Return-on-Tangible-Equity has ranged from 10.47 to 29.00 over the past decade. While the company's 10-year median is 15.34 vs. the industry median of 5.06, Vertex 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 Building Materials company?
The median Return-on-Tangible-Equity among Building Materials companies is 5.06, based on 397 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. Vertex's current Return-on-Tangible-Equity of 48.22% is 853% 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 Vertex and its competitors. For the Building Materials industry, the median Return-on-Tangible-Equity is 5.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vertex's current Return-on-Tangible-Equity is 48.22%, which is 214% above median its own 10-year median of 15.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vertex stock overvalued right now?
Based on GuruFocus' analysis, Vertex (TSE:5290) is currently considered Fairly Valued. The stock's GF Value™ is 円1,291.40, compared to a current price of 円1,324.00 — trading 2.5% above its estimated fair value. The current Return-on-Tangible-Equity is 48.22%, which is 214% above median its 10-year median of 15.34 and 853% above the Building Materials industry median of 5.06. Vertex's overall GF Score™ is 79/100 with 1 warning sign 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 Vertex (TSE:5290), the current Return-on-Tangible-Equity is 48.22% 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 Vertex (TSE:5290) Overvalued in 2026?
Based on GuruFocus' analysis, Vertex stock appears to be overvalued.
The current stock price of 円1,324.00 is trading 2.5% above its estimated GF Value™ of 円1,291.40.
GuruFocus considers Vertex to be Fairly Valued.
Key valuation signals for TSE:5290:
Return-on-Tangible-Equity: 48.22% (214% above median its 10-year median of 15.34)
GF Value™: 円1,291.40 vs. price of 円1,324.00 (2.5% above fair value)
Industry Position: 853% above the Building Materials median (#28 of 397)
No single metric tells the full story. See the TSE:5290 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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