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TSE:7952's Return-on-Tangible-Equity is ranked worse than 64.6% of 791
companies
in the Travel & Leisure industry
Industry Median: 7.76
vs TSE:7952: 2.58
Kawai Musical Instruments Manufacturing Co (TSE:7952) 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.
Kawai Musical Instruments Manufacturing Co Return-on-Tangible-Equity Related Terms
Kawai Musical Instruments Manufacturing Co Return-on-Tangible-Equity Historical Data
* 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.
Kawai Musical Instruments Manufacturing Co Return-on-Tangible-Equity Chart
Kawai Musical Instruments Manufacturing Co Annual Data
TSE:7952 vs AS, HAS, LTH: Return-on-Tangible-Equity Comparison
For the Leisure subindustry, Kawai Musical Instruments Manufacturing 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.
Kawai Musical Instruments Manufacturing Co Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Kawai Musical Instruments Manufacturing Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kawai Musical Instruments Manufacturing 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 5.21% mean?
Kawai Musical Instruments Manufacturing Co (TSE:7952) has a Return-on-Tangible-Equity of 5.21% 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 Kawai Musical Instruments Manufacturing Co and its competitors. This is 38% below median its historical median of 8.35. Over the past decade, Kawai Musical Instruments Manufacturing Co's Return-on-Tangible-Equity has ranged from 0.94 to 16.85. According to the industry distribution chart, Kawai Musical Instruments Manufacturing Co ranks #511 out of 791 companies in the Travel & Leisure industry, placing it in the top 64.6%.
Is Kawai Musical Instruments Manufacturing Co's Return-on-Tangible-Equity too high?
Kawai Musical Instruments Manufacturing Co's current Return-on-Tangible-Equity of 5.21% is 38% below median its 10-year median of 8.35. Over the past 10 years, this metric has ranged from a low of 0.94 to a high of 16.85. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.76. Kawai Musical Instruments Manufacturing Co's value of 5.21% is 32.9% below this industry median. Based on the distribution chart, Kawai Musical Instruments Manufacturing Co ranks #511 out of 791 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Kawai Musical Instruments Manufacturing Co has a GF Score™ of 59/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kawai Musical Instruments Manufacturing Co's Return-on-Tangible-Equity compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Kawai Musical Instruments Manufacturing Co ranks #511 out of 791 companies for Return-on-Tangible-Equity. This places Kawai Musical Instruments Manufacturing Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.76. Kawai Musical Instruments Manufacturing Co's value of 5.21% is 32.9% below this benchmark. Historically, Kawai Musical Instruments Manufacturing Co's own Return-on-Tangible-Equity has ranged from 0.94 to 16.85 over the past decade. While the company's 10-year median is 8.35 vs. the industry median of 7.76, Kawai Musical Instruments Manufacturing 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 Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.76, based on 791 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. Kawai Musical Instruments Manufacturing Co's current Return-on-Tangible-Equity of 5.21% is 32.9% 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 Kawai Musical Instruments Manufacturing Co and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kawai Musical Instruments Manufacturing Co's current Return-on-Tangible-Equity is 5.21%, which is 38% below median its own 10-year median of 8.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawai Musical Instruments Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Kawai Musical Instruments Manufacturing Co (TSE:7952) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,726.67, compared to a current price of 円3,300.00 — trading 21% above its estimated fair value. The current Return-on-Tangible-Equity is 5.21%, which is 38% below median its 10-year median of 8.35 and 32.9% below the Travel & Leisure industry median of 7.76. Kawai Musical Instruments Manufacturing Co's overall GF Score™ is 59/100 with 12 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 Kawai Musical Instruments Manufacturing Co (TSE:7952), the current Return-on-Tangible-Equity is 5.21% 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 Kawai Musical Instruments Manufacturing Co (TSE:7952) Overvalued in 2026?
Based on GuruFocus' analysis, Kawai Musical Instruments Manufacturing Co stock appears to be overvalued.
The current stock price of 円3,300.00 is trading 21% above its estimated GF Value™ of 円2,726.67.
GuruFocus considers Kawai Musical Instruments Manufacturing Co to be Modestly Overvalued.
Key valuation signals for TSE:7952:
Return-on-Tangible-Equity: 5.21% (38% below median its 10-year median of 8.35)
GF Value™: 円2,726.67 vs. price of 円3,300.00 (21% above fair value)
Industry Position: 32.9% below the Travel & Leisure median (#511 of 791)
No single metric tells the full story. See the TSE:7952 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawai Musical Instruments Manufacturing Co Business Description
Kawai Musical Instruments Manufacturing Co Ltd is a Japan-based musical instrument manufacturer. The company is mainly engaged in manufacturing and sales of musical instruments, precision metals, wood products, and electronic devices. Products offered by the company include grand pianos, upright pianos, digital pianos, hybrid pianos, and anytime pianos. It sells its products under the brand name Philosophy, Legacy, Artists, Competitions, and Institutions. Kawai has world-wide sales networks, it distributes its products in Europe, America, Asia and Oceania, Africa and the Middle East. The company is also engaged in the development and sales of software and operations of music schools, and gymnastics schools.
59GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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