ERI HOLDINGS Co (TSE:6083) Return-on-Tangible-Equity: 58.24% (As of Feb. 2026) — 127% Above Median

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TSE:6083 ERI HOLDINGS Co Ltd TSE:6083
93 GF Score
Price 円1,456.00
GF Value 円1,074.57
Valuation Significantly Overvalued
! 1 Warning Sign
View Full Analysis

What is ERI HOLDINGS Co Return-on-Tangible-Equity?

ERI HOLDINGS Co TSE:6083 -0.27% 93 Return-on-Tangible-Equity is 58.24% as of Feb. 2026, which is 127% above its 10-year median of 25.62. GuruFocus rates TSE:6083 with a GF Score™ of 93/100 and a GF Value™ of 円1,074.57 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,009 Business Services companies, ERI HOLDINGS Co ranks better than 85.53% 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. ERI HOLDINGS Co's annualized net income for the quarter that ended in Feb. 2026 was 円3,444 Mil. ERI HOLDINGS Co's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円5,913 Mil. Therefore, ERI HOLDINGS Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 58.24%.

The historical rank and industry rank for ERI HOLDINGS Co's Return-on-Tangible-Equity or its related term are showing as below:

TSE:6083' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.1   Med: 25.62   Max: 52.81
Current: 52.81

During the past 13 years, ERI HOLDINGS Co's highest Return-on-Tangible-Equity was 52.81%. The lowest was 10.10%. And the median was 25.62%.

TSE:6083's Return-on-Tangible-Equity is ranked better than
85.53% of 1009 companies
in the Business Services industry
Industry Median: 10.69 vs TSE:6083: 52.81

ERI HOLDINGS Co  (TSE:6083) 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.


ERI HOLDINGS Co Return-on-Tangible-Equity Related Terms


ERI HOLDINGS Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for ERI HOLDINGS 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.

ERI HOLDINGS Co Return-on-Tangible-Equity Chart

ERI HOLDINGS Co Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 44.17 39.72 25.91 25.11 50.10

ERI HOLDINGS Co Quarterly Data
Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Nov24 May25 Aug25 Nov25 Feb26 May26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 39.45 53.97 58.24 60.08

TSE:6083 vs CTAS, CPRT, ULS: Return-on-Tangible-Equity Comparison

For the Specialty Business Services subindustry, ERI HOLDINGS 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.


ERI HOLDINGS Co Return-on-Tangible-Equity vs Business Services Industry

For the Business Services industry and Industrials sector, ERI HOLDINGS Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where ERI HOLDINGS Co's Return-on-Tangible-Equity falls into.


TSE:6083
93GF Score
ERI HOLDINGS Co Ltd TSE:6083
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

ERI HOLDINGS Co Return-on-Tangible-Equity Calculation

ERI HOLDINGS Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in May. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: May. 2026 )  (A: May. 2025 )(A: May. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: May. 2026 )  (A: May. 2025 )(A: May. 2026 )
=3146.578/( (5179.355+7382.95 )/ 2 )
=3146.578/6281.1525
=50.10 %

ERI HOLDINGS Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Feb. 2026 )  (Q: Nov. 2025 )(Q: Feb. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Feb. 2026 )  (Q: Nov. 2025 )(Q: Feb. 2026 )
=3444.044/( (5663.363+6163.605)/ 2 )
=3444.044/5913.484
=58.24 %

* 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 58.24% mean?
ERI HOLDINGS Co (TSE:6083) has a Return-on-Tangible-Equity of 58.24% 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 ERI HOLDINGS Co and its competitors. This is 127% above median its historical median of 25.62. Over the past decade, ERI HOLDINGS Co's Return-on-Tangible-Equity has ranged from 10.10 to 52.81. According to the industry distribution chart, ERI HOLDINGS Co ranks #146 out of 1009 companies in the Business Services industry, placing it in the top 14.5%.
Is ERI HOLDINGS Co's Return-on-Tangible-Equity too high?
ERI HOLDINGS Co's current Return-on-Tangible-Equity of 58.24% is 127% above median its 10-year median of 25.62. Over the past 10 years, this metric has ranged from a low of 10.10 to a high of 52.81. The Business Services industry median Return-on-Tangible-Equity is 10.69. ERI HOLDINGS Co's value of 58.24% is 444.8% above this industry median. Based on the distribution chart, ERI HOLDINGS Co ranks #146 out of 1009 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, ERI HOLDINGS Co has a GF Score™ of 93/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ERI HOLDINGS Co's Return-on-Tangible-Equity compare to CTAS and CPRT?
According to the Business Services industry distribution chart, ERI HOLDINGS Co ranks #146 out of 1009 companies for Return-on-Tangible-Equity. This places ERI HOLDINGS Co in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.69. ERI HOLDINGS Co's value of 58.24% is 444.8% above this benchmark. Historically, ERI HOLDINGS Co's own Return-on-Tangible-Equity has ranged from 10.10 to 52.81 over the past decade. While the company's 10-year median is 25.62 vs. the industry median of 10.69, ERI HOLDINGS 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 10.69, 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. ERI HOLDINGS Co's current Return-on-Tangible-Equity of 58.24% is 444.8% 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 ERI HOLDINGS Co and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ERI HOLDINGS Co's current Return-on-Tangible-Equity is 58.24%, which is 127% above median its own 10-year median of 25.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ERI HOLDINGS Co stock overvalued right now?
Based on GuruFocus' analysis, ERI HOLDINGS Co (TSE:6083) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,074.57, compared to a current price of 円1,456.00 — trading 35.5% above its estimated fair value. The current Return-on-Tangible-Equity is 58.24%, which is 127% above median its 10-year median of 25.62 and 444.8% above the Business Services industry median of 10.69. ERI HOLDINGS Co's overall GF Score™ is 93/100 with 1 warning sign 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 ERI HOLDINGS Co (TSE:6083), the current Return-on-Tangible-Equity is 58.24% 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 ERI HOLDINGS Co (TSE:6083) Overvalued in 2026?

Based on GuruFocus' analysis, ERI HOLDINGS Co stock appears to be overvalued. The current stock price of 円1,456.00 is trading 35.5% above its estimated GF Value™ of 円1,074.57. GuruFocus considers ERI HOLDINGS Co to be Significantly Overvalued.

Key valuation signals for TSE:6083:

  • Return-on-Tangible-Equity: 58.24% (127% above median its 10-year median of 25.62)
  • GF Value™: 円1,074.57 vs. price of 円1,456.00 (35.5% above fair value)
  • GF Score™: 93/100 with 1 warning sign
  • Industry Position: 444.8% above the Business Services median (#146 of 1009)

No single metric tells the full story. See the TSE:6083 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


ERI HOLDINGS Co Business Description

Address 8-10-24 Akasaka, Minato-ku, Sumitomo Real Estate Aoyama Building, South Wing, 6th floor, Tokyo, JPN, 107-0052
ERI HOLDINGS Co Ltd is engaged in providing business services. The business of the company includes confirmation inspection business based on building confirmation and building standard law, housing performance evaluation and related business, and solution business during construction which include due diligence and technical review. Its segments into three reportable segments: Inspection and related businesses, Housing performance evaluation and related businesses, and Solution businesses.
93GF Score

Get the complete analysis for TSE:6083

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,456.00
Price
円1,074.57
GF Value