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Nakayama Steel WorksTSE:5408 -0.15%67 Return-on-Tangible-Equity is 2.95% as of Mar. 2026, which is 46% below its 10-year median of 5.50. GuruFocus rates TSE:5408 with a GF Score™ of 67/100 and a GF Value™ of 円620.99 (Fairly Valued). The stock has 3 warning signs investors should review. Among 616 Steel companies, Nakayama Steel Works ranks worse than 58.77% 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. Nakayama Steel Works's annualized net income for the quarter that ended in Mar. 2026 was 円3,176 Mil. Nakayama Steel Works's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円107,826 Mil. Therefore, Nakayama Steel Works's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 2.95%.
The historical rank and industry rank for Nakayama Steel Works's Return-on-Tangible-Equity or its related term are showing as below:
TSE:5408'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.29 Med: 5.5 Max: 11.06
Current: 2.3
During the past 13 years, Nakayama Steel Works's highest Return-on-Tangible-Equity was 11.06%. The lowest was 2.29%. And the median was 5.50%.
TSE:5408's Return-on-Tangible-Equity is ranked worse than 58.77% of 616
companies
in the Steel industry
Industry Median: 4.13
vs TSE:5408: 2.30
Nakayama Steel Works (TSE:5408) 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.
Nakayama Steel Works Return-on-Tangible-Equity Related Terms
Nakayama Steel Works Return-on-Tangible-Equity Historical Data
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The historical data trend for Nakayama Steel Works'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.
Nakayama Steel Works Return-on-Tangible-Equity Chart
TSE:5408 vs NUE, STLD, RS: Return-on-Tangible-Equity Comparison
For the Steel subindustry, Nakayama Steel Works'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.
Nakayama Steel Works Return-on-Tangible-Equity vs Steel Industry
For the Steel industry and Basic Materials sector, Nakayama Steel Works's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nakayama Steel Works'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 2.95% mean?
Nakayama Steel Works (TSE:5408) has a Return-on-Tangible-Equity of 2.95% 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 Nakayama Steel Works and its competitors. This is 46% below median its historical median of 5.50. Over the past decade, Nakayama Steel Works' Return-on-Tangible-Equity has ranged from 2.29 to 11.06. According to the industry distribution chart, Nakayama Steel Works ranks #362 out of 616 companies in the Steel industry, placing it in the top 58.8%.
Is Nakayama Steel Works' Return-on-Tangible-Equity too high?
Nakayama Steel Works' current Return-on-Tangible-Equity of 2.95% is 46% below median its 10-year median of 5.50. Over the past 10 years, this metric has ranged from a low of 2.29 to a high of 11.06. The Steel industry median Return-on-Tangible-Equity is 4.13. Nakayama Steel Works' value of 2.95% is 28.6% below this industry median. Based on the distribution chart, Nakayama Steel Works ranks #362 out of 616 companies in the Steel industry, which is below the industry midpoint. Overall, Nakayama Steel Works has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nakayama Steel Works' Return-on-Tangible-Equity compare to NUE and STLD?
According to the Steel industry distribution chart, Nakayama Steel Works ranks #362 out of 616 companies for Return-on-Tangible-Equity. This places Nakayama Steel Works in the lower half of its industry. The industry median Return-on-Tangible-Equity is 4.13. Nakayama Steel Works' value of 2.95% is 28.6% below this benchmark. Historically, Nakayama Steel Works' own Return-on-Tangible-Equity has ranged from 2.29 to 11.06 over the past decade. While the company's 10-year median is 5.50 vs. the industry median of 4.13, Nakayama Steel Works 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 Steel company?
The median Return-on-Tangible-Equity among Steel companies is 4.13, based on 616 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. Nakayama Steel Works's current Return-on-Tangible-Equity of 2.95% is 28.6% 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 Nakayama Steel Works and its competitors. For the Steel industry, the median Return-on-Tangible-Equity is 4.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nakayama Steel Works's current Return-on-Tangible-Equity is 2.95%, which is 46% below median its own 10-year median of 5.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nakayama Steel Works stock overvalued right now?
Based on GuruFocus' analysis, Nakayama Steel Works (TSE:5408) is currently considered Fairly Valued. The stock's GF Value™ is 円620.99, compared to a current price of 円656.00 — trading 5.6% above its estimated fair value. The current Return-on-Tangible-Equity is 2.95%, which is 46% below median its 10-year median of 5.50 and 28.6% below the Steel industry median of 4.13. Nakayama Steel Works' overall GF Score™ is 67/100 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 Nakayama Steel Works (TSE:5408), the current Return-on-Tangible-Equity is 2.95% 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 Nakayama Steel Works (TSE:5408) Overvalued in 2026?
Based on GuruFocus' analysis, Nakayama Steel Works stock appears to be overvalued.
The current stock price of 円656.00 is trading 5.6% above its estimated GF Value™ of 円620.99.
GuruFocus considers Nakayama Steel Works to be Fairly Valued.
Key valuation signals for TSE:5408:
Return-on-Tangible-Equity: 2.95% (46% below median its 10-year median of 5.50)
GF Value™: 円620.99 vs. price of 円656.00 (5.6% above fair value)
Industry Position: 28.6% below the Steel median (#362 of 616)
No single metric tells the full story. See the TSE:5408 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nakayama Steel Works Ltd is a Japan-based company. The company operates in Steel, Engineering, and Real estate business. Its Steel business includes manufacturing and sale of steel products including coil products, steel sheets, bars and wire products. The company is also engaged in real estate buying, leasing and selling.
67GF Score
Get the complete analysis for TSE:5408
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