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Daiwa Cycle CoTSE:5888 -1.82%19 Return-on-Tangible-Equity is 7.12% as of Jan. 2026, which is 50% below its 10-year median of 14.21. GuruFocus rates TSE:5888 with a GF Score™ of 19/100. Among 1,281 Vehicles & Parts companies, Daiwa Cycle Co ranks better than 77.44% 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. Daiwa Cycle Co's annualized net income for the quarter that ended in Jan. 2026 was 円441 Mil. Daiwa Cycle Co's average shareholder tangible equity for the quarter that ended in Jan. 2026 was 円6,201 Mil. Therefore, Daiwa Cycle Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2026 was 7.12%.
The historical rank and industry rank for Daiwa Cycle Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:5888'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.15 Med: 14.21 Max: 17.77
Current: 15.83
During the past 5 years, Daiwa Cycle Co's highest Return-on-Tangible-Equity was 17.77%. The lowest was 5.15%. And the median was 14.21%.
TSE:5888's Return-on-Tangible-Equity is ranked better than 77.44% of 1281
companies
in the Vehicles & Parts industry
Industry Median: 7.58
vs TSE:5888: 15.83
Daiwa Cycle Co (TSE:5888) 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.
Daiwa Cycle Co Return-on-Tangible-Equity Related Terms
Daiwa Cycle Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Daiwa Cycle 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:5888 vs BC, PII, THO: Return-on-Tangible-Equity Comparison
For the Recreational Vehicles subindustry, Daiwa Cycle 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.
Daiwa Cycle Co Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Daiwa Cycle Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Daiwa Cycle 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 four times the quarterly (Jan. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.12% mean?
Daiwa Cycle Co (TSE:5888) has a Return-on-Tangible-Equity of 7.12% as of Jan. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Daiwa Cycle Co and its competitors. This is 50% below median its historical median of 14.21. Over the past decade, Daiwa Cycle Co's Return-on-Tangible-Equity has ranged from 5.15 to 17.77. According to the industry distribution chart, Daiwa Cycle Co ranks #289 out of 1281 companies in the Vehicles & Parts industry, placing it in the top 22.6%.
Is Daiwa Cycle Co's Return-on-Tangible-Equity too high?
Daiwa Cycle Co's current Return-on-Tangible-Equity of 7.12% is 50% below median its 10-year median of 14.21. Over the past 10 years, this metric has ranged from a low of 5.15 to a high of 17.77. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.58. Daiwa Cycle Co's value of 7.12% is 6.1% below this industry median. Based on the distribution chart, Daiwa Cycle Co ranks #289 out of 1281 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Daiwa Cycle Co has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Daiwa Cycle Co's Return-on-Tangible-Equity compare to BC and PII?
According to the Vehicles & Parts industry distribution chart, Daiwa Cycle Co ranks #289 out of 1281 companies for Return-on-Tangible-Equity. This places Daiwa Cycle Co in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.58. Daiwa Cycle Co's value of 7.12% is 6.1% below this benchmark. Historically, Daiwa Cycle Co's own Return-on-Tangible-Equity has ranged from 5.15 to 17.77 over the past decade. While the company's 10-year median is 14.21 vs. the industry median of 7.58, Daiwa Cycle Co 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 7.58, based on 1,281 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. Daiwa Cycle Co's current Return-on-Tangible-Equity of 7.12% is 6.1% 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 Daiwa Cycle Co and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daiwa Cycle Co's current Return-on-Tangible-Equity is 7.12%, which is 50% below median its own 10-year median of 14.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiwa Cycle Co stock overvalued right now?
Daiwa Cycle Co (TSE:5888) has a current Return-on-Tangible-Equity of 7.12%. The current Return-on-Tangible-Equity is 7.12%, which is 50% below median its 10-year median of 14.21 and 6.1% below the Vehicles & Parts industry median of 7.58. Daiwa Cycle Co's overall GF Score™ is 19/100. 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 Daiwa Cycle Co (TSE:5888), the current Return-on-Tangible-Equity is 7.12% as of Jan. 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.
Daiwa Cycle Co Ltd is a specialty retail company that operates a chain of bicycle stores. The Company is engaged in the Sales of bicycles, bicycle parts and accessories as well as the provision of bicycle maintenance and repair. The company distributes its products and services directly to consumers through its directly managed physical locations, franchise partnerships, and e-commerce platforms.
19GF Score
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