Daido Signal CoTSE:6743 +0.98%68 Return-on-Tangible-Equity is 8.20% as of Mar. 2026, which is 47% above its 10-year median of 5.56. GuruFocus rates TSE:6743 with a GF Score™ of 68/100 and a GF Value™ of 円667.16 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,972 Industrial Products companies, Daido Signal Co ranks better than 50.94% 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. Daido Signal Co's annualized net income for the quarter that ended in Mar. 2026 was 円2,171 Mil. Daido Signal Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円26,482 Mil. Therefore, Daido Signal Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.20%.
The historical rank and industry rank for Daido Signal Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:6743'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -3.51 Med: 5.56 Max: 9.23
Current: 6.98
During the past 13 years, Daido Signal Co's highest Return-on-Tangible-Equity was 9.23%. The lowest was -3.51%. And the median was 5.56%.
TSE:6743's Return-on-Tangible-Equity is ranked better than 50.94% of 2972
companies
in the Industrial Products industry
Industry Median: 6.72
vs TSE:6743: 6.98
Daido Signal Co (TSE:6743) 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.
Daido Signal Co Return-on-Tangible-Equity Related Terms
Daido Signal Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Daido Signal 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:6743 vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Daido Signal 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.
Daido Signal Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Daido Signal Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Daido Signal 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 8.20% mean?
Daido Signal Co (TSE:6743) has a Return-on-Tangible-Equity of 8.20% 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 Daido Signal Co and its competitors. This is 47% above median its historical median of 5.56. According to the industry distribution chart, Daido Signal Co ranks #1458 out of 2972 companies in the Industrial Products industry, placing it in the top 49.1%.
Is Daido Signal Co's Return-on-Tangible-Equity too high?
Daido Signal Co's current Return-on-Tangible-Equity of 8.20% is 47% above median its 10-year median of 5.56. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Daido Signal Co's value of 8.20% is 22% above this industry median. Based on the distribution chart, Daido Signal Co ranks #1458 out of 2972 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Daido Signal Co has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daido Signal Co's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Daido Signal Co ranks #1458 out of 2972 companies for Return-on-Tangible-Equity. This puts Daido Signal Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.72. Daido Signal Co's value of 8.20% is 22% above this benchmark. While the company's 10-year median is 5.56 vs. the industry median of 6.72, Daido Signal 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,972 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. Daido Signal Co's current Return-on-Tangible-Equity of 8.20% is 22% 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 Daido Signal Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daido Signal Co's current Return-on-Tangible-Equity is 8.20%, which is 47% above median its own 10-year median of 5.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daido Signal Co stock overvalued right now?
Based on GuruFocus' analysis, Daido Signal Co (TSE:6743) is currently considered Modestly Overvalued. The stock's GF Value™ is 円667.16, compared to a current price of 円821.00 — trading 23.1% above its estimated fair value. The current Return-on-Tangible-Equity is 8.20%, which is 47% above median its 10-year median of 5.56 and 22% above the Industrial Products industry median of 6.72. Daido Signal Co's overall GF Score™ is 68/100 with 2 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 Daido Signal Co (TSE:6743), the current Return-on-Tangible-Equity is 8.20% 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 Daido Signal Co (TSE:6743) Overvalued in 2026?
Based on GuruFocus' analysis, Daido Signal Co stock appears to be overvalued.
The current stock price of 円821.00 is trading 23.1% above its estimated GF Value™ of 円667.16.
GuruFocus considers Daido Signal Co to be Modestly Overvalued.
Key valuation signals for TSE:6743:
Return-on-Tangible-Equity: 8.20% (47% above median its 10-year median of 5.56)
GF Value™: 円667.16 vs. price of 円821.00 (23.1% above fair value)
Industry Position: 22% above the Industrial Products median (#1458 of 2972)
No single metric tells the full story. See the TSE:6743 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daido Signal Co Ltd is a Japan-based company engages in the manufacture, installation/processing, repair and sale of railway signal safety devices, electrical equipment, mechanical devices, and synthetic resins.
68GF Score
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