Nichia Steel WorksTSE:5658 68 Return-on-Tangible-Equity is 4.03% as of Mar. 2026, which is 85% above its 10-year median of 2.18. GuruFocus rates TSE:5658 with a GF Score™ of 68/100 and a GF Value™ of 円326.41 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,968 Industrial Products companies, Nichia Steel Works ranks worse than 69.54% 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. Nichia Steel Works's annualized net income for the quarter that ended in Mar. 2026 was 円2,076 Mil. Nichia Steel Works's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円51,548 Mil. Therefore, Nichia Steel Works's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.03%.
The historical rank and industry rank for Nichia Steel Works's Return-on-Tangible-Equity or its related term are showing as below:
TSE:5658'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.9 Med: 2.18 Max: 3.75
Current: 1.98
During the past 13 years, Nichia Steel Works's highest Return-on-Tangible-Equity was 3.75%. The lowest was 0.90%. And the median was 2.18%.
TSE:5658's Return-on-Tangible-Equity is ranked worse than 69.54% of 2968
companies
in the Industrial Products industry
Industry Median: 6.725
vs TSE:5658: 1.98
Nichia Steel Works (TSE:5658) 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.
Nichia Steel Works Return-on-Tangible-Equity Related Terms
Nichia Steel Works Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nichia 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.
Nichia Steel Works Return-on-Tangible-Equity Chart
TSE:5658 vs SNA, RBC, LECO: Return-on-Tangible-Equity Comparison
For the Tools & Accessories subindustry, Nichia 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.
Nichia Steel Works Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nichia Steel Works's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nichia 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 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 4.03% mean?
Nichia Steel Works (TSE:5658) has a Return-on-Tangible-Equity of 4.03% 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 Nichia Steel Works and its competitors. This is 85% above median its historical median of 2.18. Over the past decade, Nichia Steel Works' Return-on-Tangible-Equity has ranged from 0.90 to 3.75. According to the industry distribution chart, Nichia Steel Works ranks #2064 out of 2968 companies in the Industrial Products industry, placing it in the top 69.5%.
Is Nichia Steel Works' Return-on-Tangible-Equity too high?
Nichia Steel Works' current Return-on-Tangible-Equity of 4.03% is 85% above median its 10-year median of 2.18. Over the past 10 years, this metric has ranged from a low of 0.90 to a high of 3.75. The Industrial Products industry median Return-on-Tangible-Equity is 6.73. Nichia Steel Works' value of 4.03% is 40.1% below this industry median. Based on the distribution chart, Nichia Steel Works ranks #2064 out of 2968 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Nichia Steel Works has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nichia Steel Works' Return-on-Tangible-Equity compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Nichia Steel Works ranks #2064 out of 2968 companies for Return-on-Tangible-Equity. This places Nichia Steel Works in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.73. Nichia Steel Works' value of 4.03% is 40.1% below this benchmark. Historically, Nichia Steel Works' own Return-on-Tangible-Equity has ranged from 0.90 to 3.75 over the past decade. While the company's 10-year median is 2.18 vs. the industry median of 6.73, Nichia 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.73, based on 2,968 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. Nichia Steel Works's current Return-on-Tangible-Equity of 4.03% is 40.1% 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 Nichia Steel Works and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nichia Steel Works's current Return-on-Tangible-Equity is 4.03%, which is 85% above median its own 10-year median of 2.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nichia Steel Works stock overvalued right now?
Based on GuruFocus' analysis, Nichia Steel Works (TSE:5658) is currently considered Fairly Valued. The stock's GF Value™ is 円326.41, compared to a current price of 円352.00 — trading 7.8% above its estimated fair value. The current Return-on-Tangible-Equity is 4.03%, which is 85% above median its 10-year median of 2.18 and 40.1% below the Industrial Products industry median of 6.73. Nichia Steel Works' overall GF Score™ is 68/100 with 5 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 Nichia Steel Works (TSE:5658), the current Return-on-Tangible-Equity is 4.03% 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 Nichia Steel Works (TSE:5658) Overvalued in 2026?
Based on GuruFocus' analysis, Nichia Steel Works stock appears to be overvalued.
The current stock price of 円352.00 is trading 7.8% above its estimated GF Value™ of 円326.41.
GuruFocus considers Nichia Steel Works to be Fairly Valued.
Key valuation signals for TSE:5658:
Return-on-Tangible-Equity: 4.03% (85% above median its 10-year median of 2.18)
GF Value™: 円326.41 vs. price of 円352.00 (7.8% above fair value)
Industry Position: 40.1% below the Industrial Products median (#2064 of 2968)
No single metric tells the full story. See the TSE:5658 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nichia Steel Works Ltd is a manufacturer of steel wire products, fasteners and related products. The products are used in various fields such as construction and civil infrastructure. It offers low carbon steel wire products, hard drawn steel wire products, fasteners & special products and other special finished products.
68GF Score
Get the complete analysis for TSE:5658
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