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Obara GroupTSE:6877 -4.44%82 Return-on-Tangible-Equity is 11.12% as of Mar. 2026, which is 0% below its 10-year median of 11.15. GuruFocus rates TSE:6877 with a GF Score™ of 82/100 and a GF Value™ of 円5,117.38 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,969 Industrial Products companies, Obara Group ranks better than 67.23% 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. Obara Group's annualized net income for the quarter that ended in Mar. 2026 was 円7,788 Mil. Obara Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円70,057 Mil. Therefore, Obara Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.12%.
The historical rank and industry rank for Obara Group's Return-on-Tangible-Equity or its related term are showing as below:
TSE:6877'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.15 Med: 11.15 Max: 19.5
Current: 11.22
During the past 13 years, Obara Group's highest Return-on-Tangible-Equity was 19.50%. The lowest was 9.15%. And the median was 11.15%.
TSE:6877's Return-on-Tangible-Equity is ranked better than 67.23% of 2969
companies
in the Industrial Products industry
Industry Median: 6.72
vs TSE:6877: 11.22
Obara Group (TSE:6877) 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.
Obara Group Return-on-Tangible-Equity Related Terms
Obara Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Obara Group'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:6877 vs SNA, RBC, LECO: Return-on-Tangible-Equity Comparison
For the Tools & Accessories subindustry, Obara Group'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.
Obara Group Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Obara Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Obara Group'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 11.12% mean?
Obara Group (TSE:6877) has a Return-on-Tangible-Equity of 11.12% 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 Obara Group and its competitors. This is near median its historical median of 11.15. Over the past decade, Obara Group's Return-on-Tangible-Equity has ranged from 9.15 to 19.50. According to the industry distribution chart, Obara Group ranks #973 out of 2969 companies in the Industrial Products industry, placing it in the top 32.8%.
Is Obara Group's Return-on-Tangible-Equity too high?
Obara Group's current Return-on-Tangible-Equity of 11.12% is near median its 10-year median of 11.15. Over the past 10 years, this metric has ranged from a low of 9.15 to a high of 19.50. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Obara Group's value of 11.12% is 65.5% above this industry median. Based on the distribution chart, Obara Group ranks #973 out of 2969 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Obara Group has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Obara Group's Return-on-Tangible-Equity compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Obara Group ranks #973 out of 2969 companies for Return-on-Tangible-Equity. This puts Obara Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.72. Obara Group's value of 11.12% is 65.5% above this benchmark. Historically, Obara Group's own Return-on-Tangible-Equity has ranged from 9.15 to 19.50 over the past decade. While the company's 10-year median is 11.15 vs. the industry median of 6.72, Obara Group 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 2,969 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. Obara Group's current Return-on-Tangible-Equity of 11.12% is 65.5% 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 Obara Group 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. Obara Group's current Return-on-Tangible-Equity is 11.12%, which is near median its own 10-year median of 11.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Obara Group stock overvalued right now?
Based on GuruFocus' analysis, Obara Group (TSE:6877) is currently considered Modestly Overvalued. The stock's GF Value™ is 円5,117.38, compared to a current price of 円5,810.00 — trading 13.5% above its estimated fair value. The current Return-on-Tangible-Equity is 11.12%, which is near median its 10-year median of 11.15 and 65.5% above the Industrial Products industry median of 6.72. Obara Group's overall GF Score™ is 82/100 with 3 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 Obara Group (TSE:6877), the current Return-on-Tangible-Equity is 11.12% 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 Obara Group (TSE:6877) Overvalued in 2026?
Based on GuruFocus' analysis, Obara Group stock appears to be overvalued.
The current stock price of 円5,810.00 is trading 13.5% above its estimated GF Value™ of 円5,117.38.
GuruFocus considers Obara Group to be Modestly Overvalued.
Key valuation signals for TSE:6877:
Return-on-Tangible-Equity: 11.12% (near median its 10-year median of 11.15)
GF Value™: 円5,117.38 vs. price of 円5,810.00 (13.5% above fair value)
Industry Position: 65.5% above the Industrial Products median (#973 of 2969)
No single metric tells the full story. See the TSE:6877 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Obara Group Inc is a Japanese supplier of welding and polishing solutions. The company offers resistance welding systems for the automotive industry and arc welding tools for the shipbuilding and construction industries. The polishing business sells polishing machines under the SpeedFam brand primarily to electronic and precision industries, including the treatment of silicon wafers, mobile phones and personal computer electronics, flat panels, memory disks, and opto-electronic parts.
82GF Score
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