Two stone & SonsTSE:7352 +7.27%75 Return-on-Tangible-Equity is 53.49% as of Feb. 2026, which is 72% above its 10-year median of 31.17. GuruFocus rates TSE:7352 with a GF Score™ of 75/100 and a GF Value™ of 円1,434.47 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,010 Business Services companies, Two stone & Sons ranks better than 66.04% 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. Two stone & Sons's annualized net income for the quarter that ended in Feb. 2026 was 円627 Mil. Two stone & Sons's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円1,171 Mil. Therefore, Two stone & Sons's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 53.49%.
The historical rank and industry rank for Two stone & Sons's Return-on-Tangible-Equity or its related term are showing as below:
TSE:7352'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.57 Med: 31.17 Max: 123.39
Current: 18.22
During the past 8 years, Two stone & Sons's highest Return-on-Tangible-Equity was 123.39%. The lowest was 14.57%. And the median was 31.17%.
TSE:7352's Return-on-Tangible-Equity is ranked better than 66.04% of 1010
companies
in the Business Services industry
Industry Median: 10.57
vs TSE:7352: 18.22
Two stone & Sons (TSE:7352) 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.
Two stone & Sons Return-on-Tangible-Equity Related Terms
Two stone & Sons Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Two stone & Sons'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:7352 vs CTAS, CPRT, ULS: Return-on-Tangible-Equity Comparison
For the Specialty Business Services subindustry, Two stone & Sons'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.
Two stone & Sons Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, Two stone & Sons's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Two stone & Sons'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 two times the semi-annual (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 53.49% mean?
Two stone & Sons (TSE:7352) has a Return-on-Tangible-Equity of 53.49% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Two stone & Sons and its competitors. This is 72% above median its historical median of 31.17. Over the past decade, Two stone & Sons' Return-on-Tangible-Equity has ranged from 14.57 to 123.39. According to the industry distribution chart, Two stone & Sons ranks #343 out of 1010 companies in the Business Services industry, placing it in the top 34%.
Is Two stone & Sons' Return-on-Tangible-Equity too high?
Two stone & Sons' current Return-on-Tangible-Equity of 53.49% is 72% above median its 10-year median of 31.17. Over the past 10 years, this metric has ranged from a low of 14.57 to a high of 123.39. The Business Services industry median Return-on-Tangible-Equity is 10.57. Two stone & Sons' value of 53.49% is 406.1% above this industry median. Based on the distribution chart, Two stone & Sons ranks #343 out of 1010 companies in the Business Services industry, which is above the industry midpoint. Overall, Two stone & Sons has a GF Score™ of 75/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Two stone & Sons' Return-on-Tangible-Equity compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Two stone & Sons ranks #343 out of 1010 companies for Return-on-Tangible-Equity. This puts Two stone & Sons in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.57. Two stone & Sons' value of 53.49% is 406.1% above this benchmark. Historically, Two stone & Sons' own Return-on-Tangible-Equity has ranged from 14.57 to 123.39 over the past decade. While the company's 10-year median is 31.17 vs. the industry median of 10.57, Two stone & Sons 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.57, based on 1,010 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. Two stone & Sons's current Return-on-Tangible-Equity of 53.49% is 406.1% 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 Two stone & Sons and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Two stone & Sons's current Return-on-Tangible-Equity is 53.49%, which is 72% above median its own 10-year median of 31.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Two stone & Sons stock overvalued right now?
Based on GuruFocus' analysis, Two stone & Sons (TSE:7352) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,434.47, compared to a current price of 円428.00 — trading 70.2% below its estimated fair value. The current Return-on-Tangible-Equity is 53.49%, which is 72% above median its 10-year median of 31.17 and 406.1% above the Business Services industry median of 10.57. Two stone & Sons' overall GF Score™ is 75/100 with 4 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 Two stone & Sons (TSE:7352), the current Return-on-Tangible-Equity is 53.49% as of Feb. 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 Two stone & Sons (TSE:7352) Overvalued in 2026?
Based on GuruFocus' analysis, Two stone & Sons stock appears to be undervalued.
The current stock price of 円428.00 is trading 70.2% below its estimated GF Value™ of 円1,434.47.
GuruFocus considers Two stone & Sons to be Significantly Undervalued.
Key valuation signals for TSE:7352:
Return-on-Tangible-Equity: 53.49% (72% above median its 10-year median of 31.17)
GF Value™: 円1,434.47 vs. price of 円428.00 (70.2% below fair value)
Industry Position: 406.1% above the Business Services median (#343 of 1010)
No single metric tells the full story. See the TSE:7352 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Two stone & Sons Inc is an engineering company providing engineering resources to companies, media businesses, and programming school businesses. The company develops services such as in-house media management and client solutions such as contract development.
75GF Score
Get the complete analysis for TSE:7352
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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