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Nitto DenkoTSE:6988 -2.81%85 Return-on-Tangible-Equity is 10.64% as of Mar. 2026, which is 15% below its 10-year median of 12.45. GuruFocus rates TSE:6988 with a GF Score™ of 85/100 and a GF Value™ of 円2,973.53 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,570 Chemicals companies, Nitto Denko ranks better than 78.34% 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. Nitto Denko's annualized net income for the quarter that ended in Mar. 2026 was 円111,180 Mil. Nitto Denko's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円1,044,886 Mil. Therefore, Nitto Denko's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 10.64%.
The historical rank and industry rank for Nitto Denko's Return-on-Tangible-Equity or its related term are showing as below:
TSE:6988'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.96 Med: 12.45 Max: 14.7
Current: 13.42
During the past 13 years, Nitto Denko's highest Return-on-Tangible-Equity was 14.70%. The lowest was 6.96%. And the median was 12.45%.
TSE:6988's Return-on-Tangible-Equity is ranked better than 78.34% of 1570
companies
in the Chemicals industry
Industry Median: 5.77
vs TSE:6988: 13.42
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.
Nitto Denko Return-on-Tangible-Equity Related Terms
Nitto Denko Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nitto Denko'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:6988 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Nitto Denko'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.
Nitto Denko Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nitto Denko's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nitto Denko'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 10.64% mean?
Nitto Denko (TSE:6988) has a Return-on-Tangible-Equity of 10.64% 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 Nitto Denko and its competitors. This is 15% below median its historical median of 12.45. Over the past decade, Nitto Denko's Return-on-Tangible-Equity has ranged from 6.96 to 14.70. According to the industry distribution chart, Nitto Denko ranks #340 out of 1570 companies in the Chemicals industry, placing it in the top 21.7%.
Is Nitto Denko's Return-on-Tangible-Equity too high?
Nitto Denko's current Return-on-Tangible-Equity of 10.64% is 15% below median its 10-year median of 12.45. Over the past 10 years, this metric has ranged from a low of 6.96 to a high of 14.70. The Chemicals industry median Return-on-Tangible-Equity is 5.77. Nitto Denko's value of 10.64% is 84.4% above this industry median. Based on the distribution chart, Nitto Denko ranks #340 out of 1570 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Nitto Denko has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nitto Denko's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Nitto Denko ranks #340 out of 1570 companies for Return-on-Tangible-Equity. This places Nitto Denko in the top 22% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.77. Nitto Denko's value of 10.64% is 84.4% above this benchmark. Historically, Nitto Denko's own Return-on-Tangible-Equity has ranged from 6.96 to 14.70 over the past decade. While the company's 10-year median is 12.45 vs. the industry median of 5.77, Nitto Denko 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.77, based on 1,570 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. Nitto Denko's current Return-on-Tangible-Equity of 10.64% is 84.4% 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 Nitto Denko and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nitto Denko's current Return-on-Tangible-Equity is 10.64%, which is 15% below median its own 10-year median of 12.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nitto Denko stock overvalued right now?
Based on GuruFocus' analysis, Nitto Denko (TSE:6988) is currently considered Fairly Valued. The stock's GF Value™ is 円2,973.53, compared to a current price of 円3,222.00 — trading 8.4% above its estimated fair value. The current Return-on-Tangible-Equity is 10.64%, which is 15% below median its 10-year median of 12.45 and 84.4% above the Chemicals industry median of 5.77. Nitto Denko'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 Nitto Denko (TSE:6988), the current Return-on-Tangible-Equity is 10.64% 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 Nitto Denko (TSE:6988) Overvalued in 2026?
Based on GuruFocus' analysis, Nitto Denko stock appears to be overvalued.
The current stock price of 円3,222.00 is trading 8.4% above its estimated GF Value™ of 円2,973.53.
GuruFocus considers Nitto Denko to be Fairly Valued.
Key valuation signals for TSE:6988:
Return-on-Tangible-Equity: 10.64% (15% below median its 10-year median of 12.45)
GF Value™: 円2,973.53 vs. price of 円3,222.00 (8.4% above fair value)
Industry Position: 84.4% above the Chemicals median (#340 of 1570)
No single metric tells the full story. See the TSE:6988 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nitto Denko is a manufacturer of advanced materials for niche industry applications. Its three segments are industrial tape (35% of revenue), optical films (55%), and materials used in health science (10%). Its advanced materials are used in manufacturing with main customers being suppliers to original equipment manufacturers in the computer, smartphone, and automobile industries. The company has more than 15,000 products. Most revenue is from Asia/Oceania (60%), followed by Japan (20%). The remainder is roughly equally split between Americas and Europe, each representing about 10% of revenue.
85GF Score
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