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Nippon Avionics CoTSE:6946 -3.08%85 Return-on-Tangible-Equity is 42.78% as of Mar. 2026, which is 188% above its 10-year median of 14.88. GuruFocus rates TSE:6946 with a GF Score™ of 85/100 and a GF Value™ of 円4,254.46 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,970 Industrial Products companies, Nippon Avionics Co ranks better than 90.07% 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. Nippon Avionics Co's annualized net income for the quarter that ended in Mar. 2026 was 円6,356 Mil. Nippon Avionics Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円14,859 Mil. Therefore, Nippon Avionics Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 42.78%.
The historical rank and industry rank for Nippon Avionics Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:6946'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.25 Med: 14.88 Max: 27.1
Current: 27.1
During the past 13 years, Nippon Avionics Co's highest Return-on-Tangible-Equity was 27.10%. The lowest was 0.25%. And the median was 14.88%.
TSE:6946's Return-on-Tangible-Equity is ranked better than 90.07% of 2970
companies
in the Industrial Products industry
Industry Median: 6.725
vs TSE:6946: 27.10
Nippon Avionics Co (TSE:6946) 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.
Nippon Avionics Co Return-on-Tangible-Equity Related Terms
Nippon Avionics Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nippon Avionics 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.
Nippon Avionics Co Return-on-Tangible-Equity Chart
TSE:6946 vs VRT, BE: Return-on-Tangible-Equity Comparison
For the Electrical Equipment & Parts subindustry, Nippon Avionics 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.
Nippon Avionics Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nippon Avionics Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nippon Avionics 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 42.78% mean?
Nippon Avionics Co (TSE:6946) has a Return-on-Tangible-Equity of 42.78% 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 Nippon Avionics Co and its competitors. This is 188% above median its historical median of 14.88. Over the past decade, Nippon Avionics Co's Return-on-Tangible-Equity has ranged from 0.25 to 27.10. According to the industry distribution chart, Nippon Avionics Co ranks #295 out of 2970 companies in the Industrial Products industry, placing it in the top 9.9%.
Is Nippon Avionics Co's Return-on-Tangible-Equity too high?
Nippon Avionics Co's current Return-on-Tangible-Equity of 42.78% is 188% above median its 10-year median of 14.88. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 27.10. The Industrial Products industry median Return-on-Tangible-Equity is 6.73. Nippon Avionics Co's value of 42.78% is 536.1% above this industry median. Based on the distribution chart, Nippon Avionics Co ranks #295 out of 2970 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Avionics Co has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Avionics Co's Return-on-Tangible-Equity compare to VRT and BE?
According to the Industrial Products industry distribution chart, Nippon Avionics Co ranks #295 out of 2970 companies for Return-on-Tangible-Equity. This places Nippon Avionics Co in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.73. Nippon Avionics Co's value of 42.78% is 536.1% above this benchmark. Historically, Nippon Avionics Co's own Return-on-Tangible-Equity has ranged from 0.25 to 27.10 over the past decade. While the company's 10-year median is 14.88 vs. the industry median of 6.73, Nippon Avionics 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 6.73, based on 2,970 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. Nippon Avionics Co's current Return-on-Tangible-Equity of 42.78% is 536.1% 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 Nippon Avionics Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Avionics Co's current Return-on-Tangible-Equity is 42.78%, which is 188% above median its own 10-year median of 14.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Avionics Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Avionics Co (TSE:6946) is currently considered Modestly Overvalued. The stock's GF Value™ is 円4,254.46, compared to a current price of 円4,875.00 — trading 14.6% above its estimated fair value. The current Return-on-Tangible-Equity is 42.78%, which is 188% above median its 10-year median of 14.88 and 536.1% above the Industrial Products industry median of 6.73. Nippon Avionics Co's overall GF Score™ is 85/100 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 Nippon Avionics Co (TSE:6946), the current Return-on-Tangible-Equity is 42.78% 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 Nippon Avionics Co (TSE:6946) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Avionics Co stock appears to be overvalued.
The current stock price of 円4,875.00 is trading 14.6% above its estimated GF Value™ of 円4,254.46.
GuruFocus considers Nippon Avionics Co to be Modestly Overvalued.
Key valuation signals for TSE:6946:
Return-on-Tangible-Equity: 42.78% (188% above median its 10-year median of 14.88)
GF Value™: 円4,254.46 vs. price of 円4,875.00 (14.6% above fair value)
Industry Position: 536.1% above the Industrial Products median (#295 of 2970)
No single metric tells the full story. See the TSE:6946 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Avionics Co Ltd is a manufacturer of electronics equipment. The company is organized into three major business segments - Information System, Joining Equipment, and Infrared Thermography. Information System business provides device products and packaging technologies adopted for the development, manufacture and maintenance of various defence system equipment. The Micro Joining Equipment business active in the manufacture of electronic equipment and electronic parts. It offers a wide range of solutions including welding, soldering, thermocompression bonding, thermal caulking, sealing and ultrasonic bonding. The Infrared Thermography business develops, manufactures and sells infrared thermography camera that visualizes heat.
85GF Score
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