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The Royal HotelTSE:9713 +0.33%67 Return-on-Tangible-Equity is 6.81% as of Mar. 2026, which is 0% below its 10-year median of 6.84. GuruFocus rates TSE:9713 with a GF Score™ of 67/100 and a GF Value™ of 円1,079.50 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 797 Travel & Leisure companies, The Royal Hotel ranks worse than 55.83% 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. The Royal Hotel's annualized net income for the quarter that ended in Mar. 2026 was 円1,542 Mil. The Royal Hotel's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円22,627 Mil. Therefore, The Royal Hotel's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 6.81%.
The historical rank and industry rank for The Royal Hotel's Return-on-Tangible-Equity or its related term are showing as below:
TSE:9713'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -60.93 Med: 6.84 Max: 77.27
Current: 5.27
During the past 13 years, The Royal Hotel's highest Return-on-Tangible-Equity was 77.27%. The lowest was -60.93%. And the median was 6.84%.
TSE:9713's Return-on-Tangible-Equity is ranked worse than 55.83% of 797
companies
in the Travel & Leisure industry
Industry Median: 7.65
vs TSE:9713: 5.27
The Royal Hotel (TSE:9713) 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.
The Royal Hotel Return-on-Tangible-Equity Related Terms
The Royal Hotel Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for The Royal Hotel'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:9713 vs MAR, HLT, H: Return-on-Tangible-Equity Comparison
For the Lodging subindustry, The Royal Hotel'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.
The Royal Hotel Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, The Royal Hotel's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The Royal Hotel'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 6.81% mean?
The Royal Hotel (TSE:9713) has a Return-on-Tangible-Equity of 6.81% 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 The Royal Hotel and its competitors. This is near median its historical median of 6.84. According to the industry distribution chart, The Royal Hotel ranks #445 out of 797 companies in the Travel & Leisure industry, placing it in the top 55.8%.
Is The Royal Hotel's Return-on-Tangible-Equity too high?
The Royal Hotel's current Return-on-Tangible-Equity of 6.81% is near median its 10-year median of 6.84. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.65. The Royal Hotel's value of 6.81% is 11% below this industry median. Based on the distribution chart, The Royal Hotel ranks #445 out of 797 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, The Royal Hotel has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Royal Hotel's Return-on-Tangible-Equity compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, The Royal Hotel ranks #445 out of 797 companies for Return-on-Tangible-Equity. This places The Royal Hotel in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.65. The Royal Hotel's value of 6.81% is 11% below this benchmark. While the company's 10-year median is 6.84 vs. the industry median of 7.65, The Royal Hotel 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 7.65, based on 797 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. The Royal Hotel's current Return-on-Tangible-Equity of 6.81% is 11% 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 The Royal Hotel and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Royal Hotel's current Return-on-Tangible-Equity is 6.81%, which is near median its own 10-year median of 6.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Royal Hotel stock overvalued right now?
Based on GuruFocus' analysis, The Royal Hotel (TSE:9713) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,079.50, compared to a current price of 円905.00 — trading 16.2% below its estimated fair value. The current Return-on-Tangible-Equity is 6.81%, which is near median its 10-year median of 6.84 and 11% below the Travel & Leisure industry median of 7.65. The Royal Hotel's overall GF Score™ is 67/100 with 5 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 The Royal Hotel (TSE:9713), the current Return-on-Tangible-Equity is 6.81% 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 The Royal Hotel (TSE:9713) Overvalued in 2026?
Based on GuruFocus' analysis, The Royal Hotel stock appears to be undervalued.
The current stock price of 円905.00 is trading 16.2% below its estimated GF Value™ of 円1,079.50.
GuruFocus considers The Royal Hotel to be Modestly Undervalued.
Key valuation signals for TSE:9713:
Return-on-Tangible-Equity: 6.81% (near median its 10-year median of 6.84)
GF Value™: 円1,079.50 vs. price of 円905.00 (16.2% below fair value)
Industry Position: 11% below the Travel & Leisure median (#445 of 797)
No single metric tells the full story. See the TSE:9713 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Royal Hotel Ltd is a Japanese company engaged in the hotel industry. The company is a hotel operator providing accommodation, dining, and spa facilities. The company has developed eleven hotels around Hiroshima, Tokyo, and Kyoto.
67GF Score
Get the complete analysis for TSE:9713
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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