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Taihei Machinery WorksTSE:6342 +0.67%83 Return-on-Tangible-Equity is 3.08% as of Mar. 2026, which is 70% below its 10-year median of 10.39. GuruFocus rates TSE:6342 with a GF Score™ of 83/100 and a GF Value™ of 円2,520.75 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 279 Forest Products companies, Taihei Machinery Works ranks better than 71.33% 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. Taihei Machinery Works's annualized net income for the quarter that ended in Mar. 2026 was 円220 Mil. Taihei Machinery Works's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円7,153 Mil. Therefore, Taihei Machinery Works's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 3.08%.
The historical rank and industry rank for Taihei Machinery Works's Return-on-Tangible-Equity or its related term are showing as below:
TSE:6342'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.08 Med: 10.39 Max: 16.83
Current: 6.21
During the past 13 years, Taihei Machinery Works's highest Return-on-Tangible-Equity was 16.83%. The lowest was 0.08%. And the median was 10.39%.
TSE:6342's Return-on-Tangible-Equity is ranked better than 71.33% of 279
companies
in the Forest Products industry
Industry Median: 2.21
vs TSE:6342: 6.21
Taihei Machinery Works (TSE:6342) 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.
Taihei Machinery Works Return-on-Tangible-Equity Related Terms
Taihei Machinery Works Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Taihei Machinery Works'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.
Taihei Machinery Works Return-on-Tangible-Equity Chart
TSE:6342 vs SSD, UFPI, BCC: Return-on-Tangible-Equity Comparison
For the Lumber & Wood Production subindustry, Taihei Machinery Works'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.
Taihei Machinery Works Return-on-Tangible-Equity vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Taihei Machinery Works's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Taihei Machinery Works'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 3.08% mean?
Taihei Machinery Works (TSE:6342) has a Return-on-Tangible-Equity of 3.08% 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 Taihei Machinery Works and its competitors. This is 70% below median its historical median of 10.39. Over the past decade, Taihei Machinery Works' Return-on-Tangible-Equity has ranged from 0.08 to 16.83. According to the industry distribution chart, Taihei Machinery Works ranks #80 out of 279 companies in the Forest Products industry, placing it in the top 28.7%.
Is Taihei Machinery Works' Return-on-Tangible-Equity too high?
Taihei Machinery Works' current Return-on-Tangible-Equity of 3.08% is 70% below median its 10-year median of 10.39. Over the past 10 years, this metric has ranged from a low of 0.08 to a high of 16.83. The Forest Products industry median Return-on-Tangible-Equity is 2.21. Taihei Machinery Works' value of 3.08% is 39.4% above this industry median. Based on the distribution chart, Taihei Machinery Works ranks #80 out of 279 companies in the Forest Products industry, which is above the industry midpoint. Overall, Taihei Machinery Works has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taihei Machinery Works' Return-on-Tangible-Equity compare to SSD and UFPI?
According to the Forest Products industry distribution chart, Taihei Machinery Works ranks #80 out of 279 companies for Return-on-Tangible-Equity. This puts Taihei Machinery Works in the upper half of its industry. The industry median Return-on-Tangible-Equity is 2.21. Taihei Machinery Works' value of 3.08% is 39.4% above this benchmark. Historically, Taihei Machinery Works' own Return-on-Tangible-Equity has ranged from 0.08 to 16.83 over the past decade. While the company's 10-year median is 10.39 vs. the industry median of 2.21, Taihei Machinery Works 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 Forest Products company?
The median Return-on-Tangible-Equity among Forest Products companies is 2.21, based on 279 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. Taihei Machinery Works's current Return-on-Tangible-Equity of 3.08% is 39.4% 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 Taihei Machinery Works and its competitors. For the Forest Products industry, the median Return-on-Tangible-Equity is 2.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taihei Machinery Works's current Return-on-Tangible-Equity is 3.08%, which is 70% below median its own 10-year median of 10.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taihei Machinery Works stock overvalued right now?
Based on GuruFocus' analysis, Taihei Machinery Works (TSE:6342) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,520.75, compared to a current price of 円2,835.00 — trading 12.5% above its estimated fair value. The current Return-on-Tangible-Equity is 3.08%, which is 70% below median its 10-year median of 10.39 and 39.4% above the Forest Products industry median of 2.21. Taihei Machinery Works' overall GF Score™ is 83/100 with 6 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 Taihei Machinery Works (TSE:6342), the current Return-on-Tangible-Equity is 3.08% 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 Taihei Machinery Works (TSE:6342) Overvalued in 2026?
Based on GuruFocus' analysis, Taihei Machinery Works stock appears to be overvalued.
The current stock price of 円2,835.00 is trading 12.5% above its estimated GF Value™ of 円2,520.75.
GuruFocus considers Taihei Machinery Works to be Modestly Overvalued.
Key valuation signals for TSE:6342:
Return-on-Tangible-Equity: 3.08% (70% below median its 10-year median of 10.39)
GF Value™: 円2,520.75 vs. price of 円2,835.00 (12.5% above fair value)
Industry Position: 39.4% above the Forest Products median (#80 of 279)
No single metric tells the full story. See the TSE:6342 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taihei Machinery Works Ltd is engaged in the manufacturing and sale of plywood and woodworking machines. It offers plywood plant equipment, LVL production machines, knife grinding machines, chargers, reeling apparatus and dryers among others.
83GF Score
Get the complete analysis for TSE:6342
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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