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OtakeTSE:7434 -0.49%71 Return-on-Tangible-Equity is 8.28% as of Nov. 2025, which is 96% above its 10-year median of 4.22. GuruFocus rates TSE:7434 with a GF Score™ of 71/100 and a GF Value™ of 円2,154.26 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,708 Construction companies, Otake ranks worse than 63.17% 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. Otake's annualized net income for the quarter that ended in Nov. 2025 was 円1,294 Mil. Otake's average shareholder tangible equity for the quarter that ended in Nov. 2025 was 円15,623 Mil. Therefore, Otake's annualized Return-on-Tangible-Equity for the quarter that ended in Nov. 2025 was 8.28%.
The historical rank and industry rank for Otake's Return-on-Tangible-Equity or its related term are showing as below:
TSE:7434'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.93 Med: 4.22 Max: 6.15
Current: 4.17
During the past 13 years, Otake's highest Return-on-Tangible-Equity was 6.15%. The lowest was 2.93%. And the median was 4.22%.
TSE:7434's Return-on-Tangible-Equity is ranked worse than 63.17% of 1708
companies
in the Construction industry
Industry Median: 8.175
vs TSE:7434: 4.17
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.
Otake Return-on-Tangible-Equity Related Terms
Otake Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Otake'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:7434 vs TT, JCI, CARR: Return-on-Tangible-Equity Comparison
For the Building Products & Equipment subindustry, Otake'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.
Otake Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Otake's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Otake'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 (Nov. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 8.28% mean?
Otake (TSE:7434) has a Return-on-Tangible-Equity of 8.28% as of Nov. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Otake and its competitors. This is 96% above median its historical median of 4.22. Over the past decade, Otake's Return-on-Tangible-Equity has ranged from 2.93 to 6.15. According to the industry distribution chart, Otake ranks #1079 out of 1708 companies in the Construction industry, placing it in the top 63.2%.
Is Otake's Return-on-Tangible-Equity too high?
Otake's current Return-on-Tangible-Equity of 8.28% is 96% above median its 10-year median of 4.22. Over the past 10 years, this metric has ranged from a low of 2.93 to a high of 6.15. The Construction industry median Return-on-Tangible-Equity is 8.18. Otake's value of 8.28% is 1.3% above this industry median. Based on the distribution chart, Otake ranks #1079 out of 1708 companies in the Construction industry, which is below the industry midpoint. Overall, Otake has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Otake's Return-on-Tangible-Equity compare to TT and JCI?
According to the Construction industry distribution chart, Otake ranks #1079 out of 1708 companies for Return-on-Tangible-Equity. This places Otake in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.18. Otake's value of 8.28% is 1.3% above this benchmark. Historically, Otake's own Return-on-Tangible-Equity has ranged from 2.93 to 6.15 over the past decade. While the company's 10-year median is 4.22 vs. the industry median of 8.18, Otake 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.18, based on 1,708 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. Otake's current Return-on-Tangible-Equity of 8.28% is 1.3% 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 Otake and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otake's current Return-on-Tangible-Equity is 8.28%, which is 96% above median its own 10-year median of 4.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otake stock overvalued right now?
Based on GuruFocus' analysis, Otake (TSE:7434) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,154.26, compared to a current price of 円1,830.00 — trading 15.1% below its estimated fair value. The current Return-on-Tangible-Equity is 8.28%, which is 96% above median its 10-year median of 4.22 and 1.3% above the Construction industry median of 8.18. Otake's overall GF Score™ is 71/100 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 Otake (TSE:7434), the current Return-on-Tangible-Equity is 8.28% as of Nov. 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 Otake (TSE:7434) Overvalued in 2026?
Based on GuruFocus' analysis, Otake stock appears to be undervalued.
The current stock price of 円1,830.00 is trading 15.1% below its estimated GF Value™ of 円2,154.26.
GuruFocus considers Otake to be Modestly Undervalued.
Key valuation signals for TSE:7434:
Return-on-Tangible-Equity: 8.28% (96% above median its 10-year median of 4.22)
GF Value™: 円2,154.26 vs. price of 円1,830.00 (15.1% below fair value)
Industry Position: 1.3% above the Construction median (#1079 of 1708)
No single metric tells the full story. See the TSE:7434 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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