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Rhythm CoTSE:7769 -0.52%75 Return-on-Tangible-Equity is 3.12% as of Mar. 2026, which is 94% above its 10-year median of 1.61. GuruFocus rates TSE:7769 with a GF Score™ of 75/100 and a GF Value™ of 円3,883.99 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,062 Retail - Cyclical companies, Rhythm Co ranks worse than 53.58% 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. Rhythm Co's annualized net income for the quarter that ended in Mar. 2026 was 円1,002 Mil. Rhythm Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円32,132 Mil. Therefore, Rhythm Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 3.12%.
The historical rank and industry rank for Rhythm Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:7769'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -5.15 Med: 1.61 Max: 7.29
Current: 7.29
During the past 13 years, Rhythm Co's highest Return-on-Tangible-Equity was 7.29%. The lowest was -5.15%. And the median was 1.61%.
TSE:7769's Return-on-Tangible-Equity is ranked worse than 53.58% of 1062
companies
in the Retail - Cyclical industry
Industry Median: 8.455
vs TSE:7769: 7.29
Rhythm Co (TSE:7769) 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.
Rhythm Co Return-on-Tangible-Equity Related Terms
Rhythm Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Rhythm 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:7769 vs TPR: Return-on-Tangible-Equity Comparison
For the Luxury Goods subindustry, Rhythm 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.
Rhythm Co Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Rhythm Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rhythm 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 two times the semi-annual (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 3.12% mean?
Rhythm Co (TSE:7769) has a Return-on-Tangible-Equity of 3.12% 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 Rhythm Co and its competitors. This is 94% above median its historical median of 1.61. According to the industry distribution chart, Rhythm Co ranks #569 out of 1062 companies in the Retail - Cyclical industry, placing it in the top 53.6%.
Is Rhythm Co's Return-on-Tangible-Equity too high?
Rhythm Co's current Return-on-Tangible-Equity of 3.12% is 94% above median its 10-year median of 1.61. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.46. Rhythm Co's value of 3.12% is 63.1% below this industry median. Based on the distribution chart, Rhythm Co ranks #569 out of 1062 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Rhythm Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rhythm Co's Return-on-Tangible-Equity compare to TPR?
According to the Retail - Cyclical industry distribution chart, Rhythm Co ranks #569 out of 1062 companies for Return-on-Tangible-Equity. This places Rhythm Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.46. Rhythm Co's value of 3.12% is 63.1% below this benchmark. While the company's 10-year median is 1.61 vs. the industry median of 8.46, Rhythm 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 8.46, based on 1,062 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. Rhythm Co's current Return-on-Tangible-Equity of 3.12% is 63.1% 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 Rhythm Co and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rhythm Co's current Return-on-Tangible-Equity is 3.12%, which is 94% above median its own 10-year median of 1.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rhythm Co stock overvalued right now?
Based on GuruFocus' analysis, Rhythm Co (TSE:7769) is currently considered Fairly Valued. The stock's GF Value™ is 円3,883.99, compared to a current price of 円3,850.00 — trading 0.9% below its estimated fair value. The current Return-on-Tangible-Equity is 3.12%, which is 94% above median its 10-year median of 1.61 and 63.1% below the Retail - Cyclical industry median of 8.46. Rhythm Co's overall GF Score™ is 75/100 with 6 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 Rhythm Co (TSE:7769), the current Return-on-Tangible-Equity is 3.12% 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 Rhythm Co (TSE:7769) Overvalued in 2026?
Based on GuruFocus' analysis, Rhythm Co stock appears to be undervalued.
The current stock price of 円3,850.00 is trading 0.9% below its estimated GF Value™ of 円3,883.99.
GuruFocus considers Rhythm Co to be Fairly Valued.
Key valuation signals for TSE:7769:
Return-on-Tangible-Equity: 3.12% (94% above median its 10-year median of 1.61)
GF Value™: 円3,883.99 vs. price of 円3,850.00 (0.9% below fair value)
Industry Position: 63.1% below the Retail - Cyclical median (#569 of 1062)
No single metric tells the full story. See the TSE:7769 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rhythm Co Ltd is a watch manufacturer. The company is mainly engaged in the manufacturing and sale of clocks, jewelry, watches, electronic parts and equipment. It operates its business in two divisions including Precision Parts and Household Goods Business. The Precision Parts Business manufactures and sells precision parts used in automobiles, industrial equipment, optical equipment, office/communication equipment, solar power generation, home appliances, difficult precision molds, electronic equipment, information, automotive-related equipment and other decorative products. The Household Goods Business manufactures and sells clocks such as wall clocks, table clocks, alarm clocks, digital clocks and equipment clocks, clock movements, disaster prevention administrative radios and others.
75GF Score
Get the complete analysis for TSE:7769
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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