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Kato Works CoTSE:6390 +1.82%57 Return-on-Tangible-Equity is -10.56% as of Mar. 2026. GuruFocus rates TSE:6390 with a GF Score™ of 57/100 and a GF Value™ of 円1,345.50 (Fairly Valued). The stock has 6 warning signs investors should review. Among 199 Farm & Heavy Construction Machinery companies, Kato Works Co ranks better than 55.78% 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. Kato Works Co's annualized net income for the quarter that ended in Mar. 2026 was 円-4,420 Mil. Kato Works Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円41,875 Mil. Therefore, Kato Works Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -10.56%.
The historical rank and industry rank for Kato Works Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:6390'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -20.63 Med: 5.44 Max: 16.39
Current: 10.79
During the past 13 years, Kato Works Co's highest Return-on-Tangible-Equity was 16.39%. The lowest was -20.63%. And the median was 5.44%.
TSE:6390's Return-on-Tangible-Equity is ranked better than 55.78% of 199
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.26
vs TSE:6390: 10.79
Kato Works Co (TSE:6390) 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.
Kato Works Co Return-on-Tangible-Equity Related Terms
Kato Works Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Kato Works 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:6390 vs CAT, DE, PCAR: Return-on-Tangible-Equity Comparison
For the Farm & Heavy Construction Machinery subindustry, Kato Works 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.
Kato Works Co Return-on-Tangible-Equity vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Kato Works Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kato Works 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 (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 -10.56% mean?
Kato Works Co (TSE:6390) has a Return-on-Tangible-Equity of -10.56% 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 Kato Works Co and its competitors. According to the industry distribution chart, Kato Works Co ranks #88 out of 199 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 44.2%.
Is Kato Works Co's Return-on-Tangible-Equity too high?
Kato Works Co's current Return-on-Tangible-Equity is -10.56%. Based on the distribution chart, Kato Works Co ranks #88 out of 199 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Kato Works Co has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kato Works Co's Return-on-Tangible-Equity compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Kato Works Co ranks #88 out of 199 companies for Return-on-Tangible-Equity. This puts Kato Works Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 9.26. 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. 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 Kato Works Co 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. Kato Works Co's current Return-on-Tangible-Equity is -10.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kato Works Co stock overvalued right now?
Based on GuruFocus' analysis, Kato Works Co (TSE:6390) is currently considered Fairly Valued. The stock's GF Value™ is 円1,345.50, compared to a current price of 円1,345.00 — trading 0% below its estimated fair value. The current Return-on-Tangible-Equity is -10.56%. Kato Works Co's overall GF Score™ is 57/100 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 Kato Works Co (TSE:6390), the current Return-on-Tangible-Equity is -10.56% 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 Kato Works Co (TSE:6390) Overvalued in 2026?
Based on GuruFocus' analysis, Kato Works Co stock appears to be undervalued.
The current stock price of 円1,345.00 is trading 0% below its estimated GF Value™ of 円1,345.50.
GuruFocus considers Kato Works Co to be Fairly Valued.
Key valuation signals for TSE:6390:
Return-on-Tangible-Equity: -10.56%
GF Value™: 円1,345.50 vs. price of 円1,345.00 (0% below fair value)
No single metric tells the full story. See the TSE:6390 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kato Works Co Ltd is a Japan-based machinery manufacturer. The company is mainly engaged in the manufacturing and sales of machinery used for the lifting and construction industries. It offers various construction equipment, mobile cranes, and industrial equipment, including truck cranes, hydraulic excavators, rough terrain cranes, all-terrain cranes, crawler cranes, mini excavators, earth boring rigs, vacuum trucks, street sweepers, and snow sweepers. Kato also offers related spare parts and services. The group's reportable segments are Japan, which is its key revenue-generating market, China, Europe, and Others.
57GF Score
Get the complete analysis for TSE:6390
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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