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TONE CoTSE:5967 +1.04%76 Return-on-Tangible-Equity is 7.78% as of Feb. 2026, which is 19% below its 10-year median of 9.61. GuruFocus rates TSE:5967 with a GF Score™ of 76/100 and a GF Value™ of 円610.90 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,973 Industrial Products companies, TONE Co ranks better than 59.7% 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. TONE Co's annualized net income for the quarter that ended in Feb. 2026 was 円931 Mil. TONE Co's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円11,974 Mil. Therefore, TONE Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 7.78%.
The historical rank and industry rank for TONE Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:5967'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.19 Med: 9.61 Max: 23.68
Current: 9.2
During the past 13 years, TONE Co's highest Return-on-Tangible-Equity was 23.68%. The lowest was 7.19%. And the median was 9.61%.
TSE:5967's Return-on-Tangible-Equity is ranked better than 59.7% of 2973
companies
in the Industrial Products industry
Industry Median: 6.87
vs TSE:5967: 9.20
TONE Co (TSE:5967) 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.
TONE Co Return-on-Tangible-Equity Related Terms
TONE Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for TONE 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:5967 vs SNA, RBC, SWK: Return-on-Tangible-Equity Comparison
For the Tools & Accessories subindustry, TONE 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.
TONE Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, TONE Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where TONE 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 (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.78% mean?
TONE Co (TSE:5967) has a Return-on-Tangible-Equity of 7.78% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on TONE Co and its competitors. This is 19% below median its historical median of 9.61. Over the past decade, TONE Co's Return-on-Tangible-Equity has ranged from 7.19 to 23.68. According to the industry distribution chart, TONE Co ranks #1198 out of 2973 companies in the Industrial Products industry, placing it in the top 40.3%.
Is TONE Co's Return-on-Tangible-Equity too high?
TONE Co's current Return-on-Tangible-Equity of 7.78% is 19% below median its 10-year median of 9.61. Over the past 10 years, this metric has ranged from a low of 7.19 to a high of 23.68. The Industrial Products industry median Return-on-Tangible-Equity is 6.87. TONE Co's value of 7.78% is 13.2% above this industry median. Based on the distribution chart, TONE Co ranks #1198 out of 2973 companies in the Industrial Products industry, which is above the industry midpoint. Overall, TONE Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TONE Co's Return-on-Tangible-Equity compare to SNA and RBC?
According to the Industrial Products industry distribution chart, TONE Co ranks #1198 out of 2973 companies for Return-on-Tangible-Equity. This puts TONE Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.87. TONE Co's value of 7.78% is 13.2% above this benchmark. Historically, TONE Co's own Return-on-Tangible-Equity has ranged from 7.19 to 23.68 over the past decade. While the company's 10-year median is 9.61 vs. the industry median of 6.87, TONE 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.87, based on 2,973 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. TONE Co's current Return-on-Tangible-Equity of 7.78% is 13.2% 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 TONE Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TONE Co's current Return-on-Tangible-Equity is 7.78%, which is 19% below median its own 10-year median of 9.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TONE Co stock overvalued right now?
Based on GuruFocus' analysis, TONE Co (TSE:5967) is currently considered Modestly Undervalued. The stock's GF Value™ is 円610.90, compared to a current price of 円487.00 — trading 20.3% below its estimated fair value. The current Return-on-Tangible-Equity is 7.78%, which is 19% below median its 10-year median of 9.61 and 13.2% above the Industrial Products industry median of 6.87. TONE Co's overall GF Score™ is 76/100 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 TONE Co (TSE:5967), the current Return-on-Tangible-Equity is 7.78% as of Feb. 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 TONE Co (TSE:5967) Overvalued in 2026?
Based on GuruFocus' analysis, TONE Co stock appears to be undervalued.
The current stock price of 円487.00 is trading 20.3% below its estimated GF Value™ of 円610.90.
GuruFocus considers TONE Co to be Modestly Undervalued.
Key valuation signals for TSE:5967:
Return-on-Tangible-Equity: 7.78% (19% below median its 10-year median of 9.61)
GF Value™: 円610.90 vs. price of 円487.00 (20.3% below fair value)
Industry Position: 13.2% above the Industrial Products median (#1198 of 2973)
No single metric tells the full story. See the TSE:5967 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TONE Co Ltd is engaged in the manufacture of work tools for the professional automotive machine direction, and industrial construction and civil engineering development, manufacturing and sales of power tools and torque management devices.
76GF Score
Get the complete analysis for TSE:5967
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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