Sakai Heavy Industries (TSE:6358) Return-on-Tangible-Equity: 8.80% (As of Mar. 2026) — 43% Above Median

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TSE:6358 Sakai Heavy Industries Ltd TSE:6358
79 GF Score
Price 円2,163.00
GF Value 円2,201.32
Valuation Fairly Valued
! 7 Warning Signs
View Full Analysis

What is Sakai Heavy Industries Return-on-Tangible-Equity?

Sakai Heavy Industries TSE:6358 +0.23% 79 Return-on-Tangible-Equity is 8.80% as of Mar. 2026, which is 43% above its 10-year median of 6.15. GuruFocus rates TSE:6358 with a GF Score™ of 79/100 and a GF Value™ of 円2,201.32 (Fairly Valued). The stock has 7 warning signs investors should review. Among 199 Farm & Heavy Construction Machinery companies, Sakai Heavy Industries ranks worse than 63.82% 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. Sakai Heavy Industries's annualized net income for the quarter that ended in Mar. 2026 was 円2,664 Mil. Sakai Heavy Industries's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円30,275 Mil. Therefore, Sakai Heavy Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.80%.

The historical rank and industry rank for Sakai Heavy Industries's Return-on-Tangible-Equity or its related term are showing as below:

TSE:6358' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.02   Med: 6.15   Max: 9.42
Current: 5.87

During the past 13 years, Sakai Heavy Industries's highest Return-on-Tangible-Equity was 9.42%. The lowest was 0.02%. And the median was 6.15%.

TSE:6358's Return-on-Tangible-Equity is ranked worse than
63.82% of 199 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.26 vs TSE:6358: 5.87

Sakai Heavy Industries  (TSE:6358) 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.


Sakai Heavy Industries Return-on-Tangible-Equity Related Terms


Sakai Heavy Industries Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Sakai Heavy Industries'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.

Sakai Heavy Industries Return-on-Tangible-Equity Chart

Sakai Heavy Industries Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.48 7.13 9.08 4.92 5.82

Sakai Heavy Industries Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
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 6.40 8.93 0.91 2.92 8.80

TSE:6358 vs CAT, DE, PCAR: Return-on-Tangible-Equity Comparison

For the Farm & Heavy Construction Machinery subindustry, Sakai Heavy Industries'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.


Sakai Heavy Industries Return-on-Tangible-Equity vs Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Sakai Heavy Industries's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Sakai Heavy Industries's Return-on-Tangible-Equity falls into.


TSE:6358
79GF Score
Sakai Heavy Industries Ltd TSE:6358
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sakai Heavy Industries Return-on-Tangible-Equity Calculation

Sakai Heavy Industries's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=1763.114/( (29532.052+31066.751 )/ 2 )
=1763.114/30299.4015
=5.82 %

Sakai Heavy Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Sep. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Sep. 2025 )(Q: Mar. 2026 )
=2663.6/( (29483.825+31066.751)/ 2 )
=2663.6/30275.288
=8.80 %

* 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 8.80% mean?
Sakai Heavy Industries (TSE:6358) has a Return-on-Tangible-Equity of 8.80% 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 Sakai Heavy Industries and its competitors. This is 43% above median its historical median of 6.15. Over the past decade, Sakai Heavy Industries' Return-on-Tangible-Equity has ranged from 0.02 to 9.42. According to the industry distribution chart, Sakai Heavy Industries ranks #127 out of 199 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 63.8%.
Is Sakai Heavy Industries' Return-on-Tangible-Equity too high?
Sakai Heavy Industries' current Return-on-Tangible-Equity of 8.80% is 43% above median its 10-year median of 6.15. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 9.42. The Farm & Heavy Construction Machinery industry median Return-on-Tangible-Equity is 9.26. Sakai Heavy Industries' value of 8.80% is 5% below this industry median. Based on the distribution chart, Sakai Heavy Industries ranks #127 out of 199 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Sakai Heavy Industries has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sakai Heavy Industries' Return-on-Tangible-Equity compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Sakai Heavy Industries ranks #127 out of 199 companies for Return-on-Tangible-Equity. This places Sakai Heavy Industries in the lower half of its industry. The industry median Return-on-Tangible-Equity is 9.26. Sakai Heavy Industries' value of 8.80% is 5% below this benchmark. Historically, Sakai Heavy Industries' own Return-on-Tangible-Equity has ranged from 0.02 to 9.42 over the past decade. While the company's 10-year median is 6.15 vs. the industry median of 9.26, Sakai Heavy Industries 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 Farm & Heavy Construction Machinery company?
The median Return-on-Tangible-Equity among Farm & Heavy Construction Machinery companies is 9.26, based on 199 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. Sakai Heavy Industries's current Return-on-Tangible-Equity of 8.80% is 5% 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 Sakai Heavy Industries and its competitors. For the Farm & Heavy Construction Machinery industry, the median Return-on-Tangible-Equity is 9.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sakai Heavy Industries's current Return-on-Tangible-Equity is 8.80%, which is 43% above median its own 10-year median of 6.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sakai Heavy Industries stock overvalued right now?
Based on GuruFocus' analysis, Sakai Heavy Industries (TSE:6358) is currently considered Fairly Valued. The stock's GF Value™ is 円2,201.32, compared to a current price of 円2,163.00 — trading 1.7% below its estimated fair value. The current Return-on-Tangible-Equity is 8.80%, which is 43% above median its 10-year median of 6.15 and 5% below the Farm & Heavy Construction Machinery industry median of 9.26. Sakai Heavy Industries' overall GF Score™ is 79/100 with 7 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 Sakai Heavy Industries (TSE:6358), the current Return-on-Tangible-Equity is 8.80% 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 Sakai Heavy Industries (TSE:6358) Overvalued in 2026?

Based on GuruFocus' analysis, Sakai Heavy Industries stock appears to be undervalued. The current stock price of 円2,163.00 is trading 1.7% below its estimated GF Value™ of 円2,201.32. GuruFocus considers Sakai Heavy Industries to be Fairly Valued.

Key valuation signals for TSE:6358:

  • Return-on-Tangible-Equity: 8.80% (43% above median its 10-year median of 6.15)
  • GF Value™: 円2,201.32 vs. price of 円2,163.00 (1.7% below fair value)
  • GF Score™: 79/100 with 7 warning signs
  • Industry Position: 5% below the Farm & Heavy Construction Machinery median (#127 of 199)

No single metric tells the full story. See the TSE:6358 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sakai Heavy Industries Business Description

Address 1-9-9 Shibadaimon, Nomura Shibadaimon Building, 5th Floor, Minato-ku, Tokyo, JPN, 105-0012
Sakai Heavy Industries Ltd is a Japan-based construction machinery manufacturing company. It is mainly engaged in the manufacturing and sale of compaction, road maintenance, and repair machines. Products offered by the company include earthmoving vibration roller, earthmoving vibration tandem roller, tire roller, macadam roller, vibrating tandem roller, vibrating combined roller, vibrating tire roller, vibrating macadam roller, rammer, plate compactor, backward and reverse plate compactor, handguide roller, road cutter, road stabilizer, asphalt finisher, drainage paving function recovery car, and sprinkler wheel.
79GF Score

Get the complete analysis for TSE:6358

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

円2,163.00
Price
円2,201.32
GF Value