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Optex Group CoTSE:6914 -5.14%89 Return-on-Tangible-Equity is 11.64% as of Dec. 2025, which is 7% below its 10-year median of 12.49. GuruFocus rates TSE:6914 with a GF Score™ of 89/100 and a GF Value™ of 円2,122.30 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,385 Hardware companies, Optex Group Co ranks better than 75.6% 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. Optex Group Co's annualized net income for the quarter that ended in Dec. 2025 was 円6,148 Mil. Optex Group Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was 円52,800 Mil. Therefore, Optex Group Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 11.64%.
The historical rank and industry rank for Optex Group Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:6914'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.86 Med: 12.49 Max: 14.93
Current: 13.59
During the past 13 years, Optex Group Co's highest Return-on-Tangible-Equity was 14.93%. The lowest was 4.86%. And the median was 12.49%.
TSE:6914's Return-on-Tangible-Equity is ranked better than 75.6% of 2385
companies
in the Hardware industry
Industry Median: 5.32
vs TSE:6914: 13.59
Optex Group Co (TSE:6914) 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.
Optex Group Co Return-on-Tangible-Equity Related Terms
Optex Group Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Optex Group 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:6914 vs APH, GLW: Return-on-Tangible-Equity Comparison
For the Electronic Components subindustry, Optex Group 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.
Optex Group Co Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Optex Group Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Optex Group 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 (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 11.64% mean?
Optex Group Co (TSE:6914) has a Return-on-Tangible-Equity of 11.64% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Optex Group Co and its competitors. This is near median its historical median of 12.49. Over the past decade, Optex Group Co's Return-on-Tangible-Equity has ranged from 4.86 to 14.93. According to the industry distribution chart, Optex Group Co ranks #582 out of 2385 companies in the Hardware industry, placing it in the top 24.4%.
Is Optex Group Co's Return-on-Tangible-Equity too high?
Optex Group Co's current Return-on-Tangible-Equity of 11.64% is near median its 10-year median of 12.49. Over the past 10 years, this metric has ranged from a low of 4.86 to a high of 14.93. The Hardware industry median Return-on-Tangible-Equity is 5.32. Optex Group Co's value of 11.64% is 118.8% above this industry median. Based on the distribution chart, Optex Group Co ranks #582 out of 2385 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Optex Group Co has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Optex Group Co's Return-on-Tangible-Equity compare to APH and GLW?
According to the Hardware industry distribution chart, Optex Group Co ranks #582 out of 2385 companies for Return-on-Tangible-Equity. This places Optex Group Co in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.32. Optex Group Co's value of 11.64% is 118.8% above this benchmark. Historically, Optex Group Co's own Return-on-Tangible-Equity has ranged from 4.86 to 14.93 over the past decade. While the company's 10-year median is 12.49 vs. the industry median of 5.32, Optex Group 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 a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.32, based on 2,385 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. Optex Group Co's current Return-on-Tangible-Equity of 11.64% is 118.8% 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 Optex Group Co and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Optex Group Co's current Return-on-Tangible-Equity is 11.64%, which is near median its own 10-year median of 12.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Optex Group Co stock overvalued right now?
Based on GuruFocus' analysis, Optex Group Co (TSE:6914) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,122.30, compared to a current price of 円3,510.00 — trading 65.4% above its estimated fair value. The current Return-on-Tangible-Equity is 11.64%, which is near median its 10-year median of 12.49 and 118.8% above the Hardware industry median of 5.32. Optex Group Co's overall GF Score™ is 89/100 with 1 warning sign 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 Optex Group Co (TSE:6914), the current Return-on-Tangible-Equity is 11.64% as of Dec. 2025. 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 Optex Group Co (TSE:6914) Overvalued in 2026?
Based on GuruFocus' analysis, Optex Group Co stock appears to be overvalued.
The current stock price of 円3,510.00 is trading 65.4% above its estimated GF Value™ of 円2,122.30.
GuruFocus considers Optex Group Co to be Significantly Overvalued.
Key valuation signals for TSE:6914:
Return-on-Tangible-Equity: 11.64% (near median its 10-year median of 12.49)
GF Value™: 円2,122.30 vs. price of 円3,510.00 (65.4% above fair value)
Industry Position: 118.8% above the Hardware median (#582 of 2385)
No single metric tells the full story. See the TSE:6914 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Optex Group Co Ltd is a Japan sensors and related system manufacturing company. The company operates through three segments. Its Sensing Solutions (SS) business develops security, automatic door, and IoT sensors that improve safety, convenience, and building efficiency. The Industrial Automation (IA) segment provides factory sensors, machine vision lighting, and inspection systems that enhance manufacturing productivity and quality control. The Electronics Manufacturing Services (EMS) segment offers electronic device contract manufacturing, proprietary product development, software development, and related service businesses. The company generates maximum revenue from sensing segment.
89GF Score
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