Kensoh Co (TSE:7939) Return-on-Tangible-Equity: 9.17% (As of Mar. 2026) — 13% Above Median

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TSE:7939 Kensoh Co Ltd TSE:7939
72 GF Score
Price 円610.00
GF Value 円579.72
Valuation Fairly Valued
! 4 Warning Signs
View Full Analysis

What is Kensoh Co Return-on-Tangible-Equity?

Kensoh Co TSE:7939 +1.67% 72 Return-on-Tangible-Equity is 9.17% as of Mar. 2026, which is 13% above its 10-year median of 8.11. GuruFocus rates TSE:7939 with a GF Score™ of 72/100 and a GF Value™ of 円579.72 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,009 Business Services companies, Kensoh Co ranks worse than 63.43% 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. Kensoh Co's annualized net income for the quarter that ended in Mar. 2026 was 円301 Mil. Kensoh Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円3,283 Mil. Therefore, Kensoh Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 9.17%.

The historical rank and industry rank for Kensoh Co's Return-on-Tangible-Equity or its related term are showing as below:

TSE:7939' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.56   Med: 8.11   Max: 13.1
Current: 6.34

During the past 13 years, Kensoh Co's highest Return-on-Tangible-Equity was 13.10%. The lowest was 5.56%. And the median was 8.11%.

TSE:7939's Return-on-Tangible-Equity is ranked worse than
63.43% of 1009 companies
in the Business Services industry
Industry Median: 10.57 vs TSE:7939: 6.34

Kensoh Co  (TSE:7939) 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.


Kensoh Co Return-on-Tangible-Equity Related Terms


Kensoh Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Kensoh 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.

Kensoh Co Return-on-Tangible-Equity Chart

Kensoh Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.02 8.92 6.12 5.56 6.29

Kensoh Co Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.11 1.01 10.18 3.50 9.17

TSE:7939 vs CTAS, CPRT, ULS: Return-on-Tangible-Equity Comparison

For the Specialty Business Services subindustry, Kensoh 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.


Kensoh Co Return-on-Tangible-Equity vs Business Services Industry

For the Business Services industry and Industrials sector, Kensoh Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Kensoh Co's Return-on-Tangible-Equity falls into.


TSE:7939
72GF Score
Kensoh Co Ltd TSE:7939
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kensoh Co Return-on-Tangible-Equity Calculation

Kensoh Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=206.85/( (3218.995+3353.678 )/ 2 )
=206.85/3286.3365
=6.29 %

Kensoh Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Sep. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Sep. 2025 )(Q: Mar. 2026 )
=301.05/( (3212.542+3353.678)/ 2 )
=301.05/3283.11
=9.17 %

* 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 9.17% mean?
Kensoh Co (TSE:7939) has a Return-on-Tangible-Equity of 9.17% 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 Kensoh Co and its competitors. This is 13% above median its historical median of 8.11. Over the past decade, Kensoh Co's Return-on-Tangible-Equity has ranged from 5.56 to 13.10. According to the industry distribution chart, Kensoh Co ranks #640 out of 1009 companies in the Business Services industry, placing it in the top 63.4%.
Is Kensoh Co's Return-on-Tangible-Equity too high?
Kensoh Co's current Return-on-Tangible-Equity of 9.17% is 13% above median its 10-year median of 8.11. Over the past 10 years, this metric has ranged from a low of 5.56 to a high of 13.10. The Business Services industry median Return-on-Tangible-Equity is 10.57. Kensoh Co's value of 9.17% is 13.2% below this industry median. Based on the distribution chart, Kensoh Co ranks #640 out of 1009 companies in the Business Services industry, which is below the industry midpoint. Overall, Kensoh Co has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kensoh Co's Return-on-Tangible-Equity compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Kensoh Co ranks #640 out of 1009 companies for Return-on-Tangible-Equity. This places Kensoh Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.57. Kensoh Co's value of 9.17% is 13.2% below this benchmark. Historically, Kensoh Co's own Return-on-Tangible-Equity has ranged from 5.56 to 13.10 over the past decade. While the company's 10-year median is 8.11 vs. the industry median of 10.57, Kensoh 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.57, based on 1,009 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. Kensoh Co's current Return-on-Tangible-Equity of 9.17% is 13.2% 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 Kensoh Co 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. Kensoh Co's current Return-on-Tangible-Equity is 9.17%, which is 13% above median its own 10-year median of 8.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kensoh Co stock overvalued right now?
Based on GuruFocus' analysis, Kensoh Co (TSE:7939) is currently considered Fairly Valued. The stock's GF Value™ is 円579.72, compared to a current price of 円610.00 — trading 5.2% above its estimated fair value. The current Return-on-Tangible-Equity is 9.17%, which is 13% above median its 10-year median of 8.11 and 13.2% below the Business Services industry median of 10.57. Kensoh Co's overall GF Score™ is 72/100 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 Kensoh Co (TSE:7939), the current Return-on-Tangible-Equity is 9.17% 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 Kensoh Co (TSE:7939) Overvalued in 2026?

Based on GuruFocus' analysis, Kensoh Co stock appears to be overvalued. The current stock price of 円610.00 is trading 5.2% above its estimated GF Value™ of 円579.72. GuruFocus considers Kensoh Co to be Fairly Valued.

Key valuation signals for TSE:7939:

  • Return-on-Tangible-Equity: 9.17% (13% above median its 10-year median of 8.11)
  • GF Value™: 円579.72 vs. price of 円610.00 (5.2% above fair value)
  • GF Score™: 72/100 with 4 warning signs
  • Industry Position: 13.2% below the Business Services median (#640 of 1009)

No single metric tells the full story. See the TSE:7939 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kensoh Co Business Description

Address 448 Kamifukagawacho, Asakita Ward, Hiroshima, JPN, 739-1792
Kensoh Co Ltd is a Japanese company engaged in manufacturing and selling metal sign products for corporations. Its products include corporate names, billboards, and nameplates for buildings. The company also manufactures and wholesales machinery to create metal signs.
72GF Score

Get the complete analysis for TSE:7939

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円610.00
Price
円579.72
GF Value