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Nikki CoTSE:6042 +0.52%63 Return-on-Tangible-Equity is 8.19% as of Mar. 2026, which is 5% below its 10-year median of 8.66. GuruFocus rates TSE:6042 with a GF Score™ of 63/100 and a GF Value™ of 円2,699.34 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,281 Vehicles & Parts companies, Nikki Co ranks better than 50.74% 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. Nikki Co's annualized net income for the quarter that ended in Mar. 2026 was 円1,024 Mil. Nikki Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円12,498 Mil. Therefore, Nikki Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.19%.
The historical rank and industry rank for Nikki Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:6042'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.3 Med: 8.66 Max: 20.67
Current: 7.74
During the past 13 years, Nikki Co's highest Return-on-Tangible-Equity was 20.67%. The lowest was 3.30%. And the median was 8.66%.
TSE:6042's Return-on-Tangible-Equity is ranked better than 50.74% of 1281
companies
in the Vehicles & Parts industry
Industry Median: 7.58
vs TSE:6042: 7.74
Nikki Co (TSE:6042) 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.
Nikki Co Return-on-Tangible-Equity Related Terms
Nikki Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nikki 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:6042 vs ORLY, AZO: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, Nikki 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.
Nikki Co Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Nikki Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nikki 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 8.19% mean?
Nikki Co (TSE:6042) has a Return-on-Tangible-Equity of 8.19% 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 Nikki Co and its competitors. This is near median its historical median of 8.66. Over the past decade, Nikki Co's Return-on-Tangible-Equity has ranged from 3.30 to 20.67. According to the industry distribution chart, Nikki Co ranks #631 out of 1281 companies in the Vehicles & Parts industry, placing it in the top 49.3%.
Is Nikki Co's Return-on-Tangible-Equity too high?
Nikki Co's current Return-on-Tangible-Equity of 8.19% is near median its 10-year median of 8.66. Over the past 10 years, this metric has ranged from a low of 3.30 to a high of 20.67. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.58. Nikki Co's value of 8.19% is 8% above this industry median. Based on the distribution chart, Nikki Co ranks #631 out of 1281 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Nikki Co has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nikki Co's Return-on-Tangible-Equity compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Nikki Co ranks #631 out of 1281 companies for Return-on-Tangible-Equity. This puts Nikki Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.58. Nikki Co's value of 8.19% is 8% above this benchmark. Historically, Nikki Co's own Return-on-Tangible-Equity has ranged from 3.30 to 20.67 over the past decade. While the company's 10-year median is 8.66 vs. the industry median of 7.58, Nikki 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 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. Nikki Co's current Return-on-Tangible-Equity of 8.19% is 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 Nikki 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. Nikki Co's current Return-on-Tangible-Equity is 8.19%, which is near median its own 10-year median of 8.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nikki Co stock overvalued right now?
Based on GuruFocus' analysis, Nikki Co (TSE:6042) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,699.34, compared to a current price of 円3,900.00 — trading 44.5% above its estimated fair value. The current Return-on-Tangible-Equity is 8.19%, which is near median its 10-year median of 8.66 and 8% above the Vehicles & Parts industry median of 7.58. Nikki Co's overall GF Score™ is 63/100 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 Nikki Co (TSE:6042), the current Return-on-Tangible-Equity is 8.19% 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 Nikki Co (TSE:6042) Overvalued in 2026?
Based on GuruFocus' analysis, Nikki Co stock appears to be overvalued.
The current stock price of 円3,900.00 is trading 44.5% above its estimated GF Value™ of 円2,699.34.
GuruFocus considers Nikki Co to be Significantly Overvalued.
Key valuation signals for TSE:6042:
Return-on-Tangible-Equity: 8.19% (near median its 10-year median of 8.66)
GF Value™: 円2,699.34 vs. price of 円3,900.00 (44.5% above fair value)
Industry Position: 8% above the Vehicles & Parts median (#631 of 1281)
No single metric tells the full story. See the TSE:6042 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nikki Co Ltd is engaged in the design, development and manufacture of fuel related devices for automobile and carburettor for an automobile engine. In addition, the company is also involved in the design and development of LPG/CNG fuel supply system and manufacture of related equipment.
63GF Score
Get the complete analysis for TSE:6042
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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