Kohnan Shoji CoTSE:7516 +0.25%66 Return-on-Tangible-Equity is 3.71% as of Feb. 2026, which is 66% below its 10-year median of 10.87. GuruFocus rates TSE:7516 with a GF Score™ of 66/100 and a GF Value™ of 円4,396.84 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,056 Retail - Cyclical companies, Kohnan Shoji Co ranks better than 50.09% 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. Kohnan Shoji Co's annualized net income for the quarter that ended in Feb. 2026 was 円5,424 Mil. Kohnan Shoji Co's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円146,243 Mil. Therefore, Kohnan Shoji Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 3.71%.
The historical rank and industry rank for Kohnan Shoji Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:7516'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.87 Med: 10.87 Max: 18.86
Current: 8.47
During the past 13 years, Kohnan Shoji Co's highest Return-on-Tangible-Equity was 18.86%. The lowest was 6.87%. And the median was 10.87%.
TSE:7516's Return-on-Tangible-Equity is ranked better than 50.09% of 1056
companies
in the Retail - Cyclical industry
Industry Median: 8.34
vs TSE:7516: 8.47
Kohnan Shoji Co (TSE:7516) 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.
Kohnan Shoji Co Return-on-Tangible-Equity Related Terms
Kohnan Shoji Co Return-on-Tangible-Equity Historical Data
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The historical data trend for Kohnan Shoji 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:7516 vs HD, LOW, FND: Return-on-Tangible-Equity Comparison
For the Home Improvement Retail subindustry, Kohnan Shoji 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.
Kohnan Shoji Co Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Kohnan Shoji Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kohnan Shoji 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 (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 3.71% mean?
Kohnan Shoji Co (TSE:7516) has a Return-on-Tangible-Equity of 3.71% 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 Kohnan Shoji Co and its competitors. This is 66% below median its historical median of 10.87. Over the past decade, Kohnan Shoji Co's Return-on-Tangible-Equity has ranged from 6.87 to 18.86. According to the industry distribution chart, Kohnan Shoji Co ranks #527 out of 1056 companies in the Retail - Cyclical industry, placing it in the top 49.9%.
Is Kohnan Shoji Co's Return-on-Tangible-Equity too high?
Kohnan Shoji Co's current Return-on-Tangible-Equity of 3.71% is 66% below median its 10-year median of 10.87. Over the past 10 years, this metric has ranged from a low of 6.87 to a high of 18.86. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.34. Kohnan Shoji Co's value of 3.71% is 55.5% below this industry median. Based on the distribution chart, Kohnan Shoji Co ranks #527 out of 1056 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Kohnan Shoji Co has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kohnan Shoji Co's Return-on-Tangible-Equity compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Kohnan Shoji Co ranks #527 out of 1056 companies for Return-on-Tangible-Equity. This puts Kohnan Shoji Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.34. Kohnan Shoji Co's value of 3.71% is 55.5% below this benchmark. Historically, Kohnan Shoji Co's own Return-on-Tangible-Equity has ranged from 6.87 to 18.86 over the past decade. While the company's 10-year median is 10.87 vs. the industry median of 8.34, Kohnan Shoji Co has consistently been below 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.34, based on 1,056 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. Kohnan Shoji Co's current Return-on-Tangible-Equity of 3.71% is 55.5% below 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 Kohnan Shoji Co and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kohnan Shoji Co's current Return-on-Tangible-Equity is 3.71%, which is 66% below median its own 10-year median of 10.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kohnan Shoji Co stock overvalued right now?
Based on GuruFocus' analysis, Kohnan Shoji Co (TSE:7516) is currently considered Fairly Valued. The stock's GF Value™ is 円4,396.84, compared to a current price of 円4,085.00 — trading 7.1% below its estimated fair value. The current Return-on-Tangible-Equity is 3.71%, which is 66% below median its 10-year median of 10.87 and 55.5% below the Retail - Cyclical industry median of 8.34. Kohnan Shoji Co's overall GF Score™ is 66/100 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 Kohnan Shoji Co (TSE:7516), the current Return-on-Tangible-Equity is 3.71% 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 Kohnan Shoji Co (TSE:7516) Overvalued in 2026?
Based on GuruFocus' analysis, Kohnan Shoji Co stock appears to be undervalued.
The current stock price of 円4,085.00 is trading 7.1% below its estimated GF Value™ of 円4,396.84.
GuruFocus considers Kohnan Shoji Co to be Fairly Valued.
Key valuation signals for TSE:7516:
Return-on-Tangible-Equity: 3.71% (66% below median its 10-year median of 10.87)
GF Value™: 円4,396.84 vs. price of 円4,085.00 (7.1% below fair value)
Industry Position: 55.5% below the Retail - Cyclical median (#527 of 1056)
No single metric tells the full story. See the TSE:7516 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kohnan Shoji Co Ltd is a Japan-based company that is principally engaged in the retail of products related to home improvement, housekeeping, and automotive supplies and accessories. The company operates through three store chains with different styles: Home Center, mainly offering DIY products and household goods to improve consumers' home and life; Homestock, a small-format version of Home Center with original brands EDLP and Lifelex; and Kohnan Pro, providing tools, building materials, and working equipment for professionals. The majority of the company's stores are Home Center stores.
66GF Score
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