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Zenhoren CoTSE:5845 -0.78%38 Return-on-Tangible-Equity is 19.68% as of Mar. 2026, which is 61% below its 10-year median of 49.84. GuruFocus rates TSE:5845 with a GF Score™ of 38/100 and a GF Value™ of 円886.18 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,009 Business Services companies, Zenhoren Co ranks better than 73.74% 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. Zenhoren Co's annualized net income for the quarter that ended in Mar. 2026 was 円1,352 Mil. Zenhoren Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円6,869 Mil. Therefore, Zenhoren Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 19.68%.
The historical rank and industry rank for Zenhoren Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:5845'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 25.06 Med: 49.84 Max: 63.44
Current: 25.49
During the past 5 years, Zenhoren Co's highest Return-on-Tangible-Equity was 63.44%. The lowest was 25.06%. And the median was 49.84%.
TSE:5845's Return-on-Tangible-Equity is ranked better than 73.74% of 1009
companies
in the Business Services industry
Industry Median: 10.71
vs TSE:5845: 25.49
Zenhoren Co (TSE:5845) 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.
Zenhoren Co Return-on-Tangible-Equity Related Terms
Zenhoren Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zenhoren Co'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:5845 vs CTAS, CPRT, ULS: Return-on-Tangible-Equity Comparison
For the Specialty Business Services subindustry, Zenhoren 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.
Zenhoren Co Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, Zenhoren Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zenhoren 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 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 19.68% mean?
Zenhoren Co (TSE:5845) has a Return-on-Tangible-Equity of 19.68% 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 Zenhoren Co and its competitors. This is 61% below median its historical median of 49.84. Over the past decade, Zenhoren Co's Return-on-Tangible-Equity has ranged from 25.06 to 63.44. According to the industry distribution chart, Zenhoren Co ranks #265 out of 1009 companies in the Business Services industry, placing it in the top 26.3%.
Is Zenhoren Co's Return-on-Tangible-Equity too high?
Zenhoren Co's current Return-on-Tangible-Equity of 19.68% is 61% below median its 10-year median of 49.84. Over the past 10 years, this metric has ranged from a low of 25.06 to a high of 63.44. The Business Services industry median Return-on-Tangible-Equity is 10.71. Zenhoren Co's value of 19.68% is 83.8% above this industry median. Based on the distribution chart, Zenhoren Co ranks #265 out of 1009 companies in the Business Services industry, which is above the industry midpoint. Overall, Zenhoren Co has a GF Score™ of 38/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zenhoren Co's Return-on-Tangible-Equity compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Zenhoren Co ranks #265 out of 1009 companies for Return-on-Tangible-Equity. This puts Zenhoren Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.71. Zenhoren Co's value of 19.68% is 83.8% above this benchmark. Historically, Zenhoren Co's own Return-on-Tangible-Equity has ranged from 25.06 to 63.44 over the past decade. While the company's 10-year median is 49.84 vs. the industry median of 10.71, Zenhoren Co 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.71, based on 1,009 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. Zenhoren Co's current Return-on-Tangible-Equity of 19.68% is 83.8% 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 Zenhoren Co and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zenhoren Co's current Return-on-Tangible-Equity is 19.68%, which is 61% below median its own 10-year median of 49.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenhoren Co stock overvalued right now?
Based on GuruFocus' analysis, Zenhoren Co (TSE:5845) is currently considered Modestly Overvalued. The stock's GF Value™ is 円886.18, compared to a current price of 円1,022.00 — trading 15.3% above its estimated fair value. The current Return-on-Tangible-Equity is 19.68%, which is 61% below median its 10-year median of 49.84 and 83.8% above the Business Services industry median of 10.71. Zenhoren Co's overall GF Score™ is 38/100 with 4 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 Zenhoren Co (TSE:5845), the current Return-on-Tangible-Equity is 19.68% 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 Zenhoren Co (TSE:5845) Overvalued in 2026?
Based on GuruFocus' analysis, Zenhoren Co stock appears to be overvalued.
The current stock price of 円1,022.00 is trading 15.3% above its estimated GF Value™ of 円886.18.
GuruFocus considers Zenhoren Co to be Modestly Overvalued.
Key valuation signals for TSE:5845:
Return-on-Tangible-Equity: 19.68% (61% below median its 10-year median of 49.84)
GF Value™: 円886.18 vs. price of 円1,022.00 (15.3% above fair value)
Industry Position: 83.8% above the Business Services median (#265 of 1009)
No single metric tells the full story. See the TSE:5845 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zenhoren Co Ltd is engaged in the rent liability guarantee business, providing rent guarantee services for residential properties with coverage of up to 24 months rent, including monthly rent, moving-out settlement fees, and tenant accident expense insurance. For business use, the Z-Business NEO service covers stores and offices with guarantees up to 24 months rent. The company also offers guarantees for parking lots and trunk rooms, the Z-value service for combined rent guarantee and fire insurance via smartphone, and Z-WEB/Z-WEB2.0 for centralized management by real estate companies. In addition, Zenhoren provides Z-College Support (tuition guarantee), enabling vocational schools and students to pay tuition fees in installments.
38GF Score
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