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HochikiTSE:6745 +0.87%79 Return-on-Tangible-Equity is 22.85% as of Mar. 2026, which is 96% above its 10-year median of 11.68. GuruFocus rates TSE:6745 with a GF Score™ of 79/100 and a GF Value™ of 円876.32 (Significantly Overvalued). Among 1,710 Construction companies, Hochiki ranks better than 69.88% 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. Hochiki's annualized net income for the quarter that ended in Mar. 2026 was 円14,844 Mil. Hochiki's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円64,963 Mil. Therefore, Hochiki's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 22.85%.
The historical rank and industry rank for Hochiki's Return-on-Tangible-Equity or its related term are showing as below:
TSE:6745'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.15 Med: 11.68 Max: 17.77
Current: 15.3
During the past 13 years, Hochiki's highest Return-on-Tangible-Equity was 17.77%. The lowest was 10.15%. And the median was 11.68%.
TSE:6745's Return-on-Tangible-Equity is ranked better than 69.88% of 1710
companies
in the Construction industry
Industry Median: 8.21
vs TSE:6745: 15.30
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.
Hochiki Return-on-Tangible-Equity Related Terms
Hochiki Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hochiki'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:6745 vs TT, JCI, CARR: Return-on-Tangible-Equity Comparison
For the Building Products & Equipment subindustry, Hochiki'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.
Hochiki Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Hochiki's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hochiki'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 22.85% mean?
Hochiki (TSE:6745) has a Return-on-Tangible-Equity of 22.85% 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 Hochiki and its competitors. This is 96% above median its historical median of 11.68. Over the past decade, Hochiki's Return-on-Tangible-Equity has ranged from 10.15 to 17.77. According to the industry distribution chart, Hochiki ranks #515 out of 1710 companies in the Construction industry, placing it in the top 30.1%.
Is Hochiki's Return-on-Tangible-Equity too high?
Hochiki's current Return-on-Tangible-Equity of 22.85% is 96% above median its 10-year median of 11.68. Over the past 10 years, this metric has ranged from a low of 10.15 to a high of 17.77. The Construction industry median Return-on-Tangible-Equity is 8.21. Hochiki's value of 22.85% is 178.3% above this industry median. Based on the distribution chart, Hochiki ranks #515 out of 1710 companies in the Construction industry, which is above the industry midpoint. Overall, Hochiki has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hochiki's Return-on-Tangible-Equity compare to TT and JCI?
According to the Construction industry distribution chart, Hochiki ranks #515 out of 1710 companies for Return-on-Tangible-Equity. This puts Hochiki in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.21. Hochiki's value of 22.85% is 178.3% above this benchmark. Historically, Hochiki's own Return-on-Tangible-Equity has ranged from 10.15 to 17.77 over the past decade. While the company's 10-year median is 11.68 vs. the industry median of 8.21, Hochiki 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.21, based on 1,710 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. Hochiki's current Return-on-Tangible-Equity of 22.85% is 178.3% 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 Hochiki and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hochiki's current Return-on-Tangible-Equity is 22.85%, which is 96% above median its own 10-year median of 11.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hochiki stock overvalued right now?
Based on GuruFocus' analysis, Hochiki (TSE:6745) is currently considered Significantly Overvalued. The stock's GF Value™ is 円876.32, compared to a current price of 円1,972.00 — trading 125% above its estimated fair value. The current Return-on-Tangible-Equity is 22.85%, which is 96% above median its 10-year median of 11.68 and 178.3% above the Construction industry median of 8.21. Hochiki's overall GF Score™ is 79/100. 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 Hochiki (TSE:6745), the current Return-on-Tangible-Equity is 22.85% 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 Hochiki (TSE:6745) Overvalued in 2026?
Based on GuruFocus' analysis, Hochiki stock appears to be overvalued.
The current stock price of 円1,972.00 is trading 125% above its estimated GF Value™ of 円876.32.
GuruFocus considers Hochiki to be Significantly Overvalued.
Key valuation signals for TSE:6745:
Return-on-Tangible-Equity: 22.85% (96% above median its 10-year median of 11.68)
GF Value™: 円876.32 vs. price of 円1,972.00 (125% above fair value)
Industry Position: 178.3% above the Construction median (#515 of 1710)
No single metric tells the full story. See the TSE:6745 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hochiki Corp. is engaged in the business of Research and development, manufacturing and sales, consulting and engineering, installation and maintenance of the systems such as Fire Alarm Systems, Fire Extinguishing Systems, Information and Communication Systems, and Security Systems. It generates maximum revenue from the Fire Alarm Systems.
79GF Score
Get the complete analysis for TSE:6745
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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