ITOCHUWBO:IOC +0.84%77 Return-on-Tangible-Equity is 14.89% as of Mar. 2026, which is 25% below its 10-year median of 19.95. GuruFocus rates WBO:IOC with a GF Score™ of 77/100 and a GF Value™ of €8.67 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 550 Conglomerates companies, ITOCHU ranks better than 80.18% 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. ITOCHU's annualized net income for the quarter that ended in Mar. 2026 was €4,252 Mil. ITOCHU's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €28,549 Mil. Therefore, ITOCHU's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.89%.
The historical rank and industry rank for ITOCHU's Return-on-Tangible-Equity or its related term are showing as below:
WBO:IOC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 18.17 Med: 19.95 Max: 30.91
Current: 18.47
During the past 13 years, ITOCHU's highest Return-on-Tangible-Equity was 30.91%. The lowest was 18.17%. And the median was 19.95%.
WBO:IOC's Return-on-Tangible-Equity is ranked better than 80.18% of 550
companies
in the Conglomerates industry
Industry Median: 7.44
vs WBO:IOC: 18.47
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.
ITOCHU Return-on-Tangible-Equity Related Terms
ITOCHU Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ITOCHU'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.
WBO:IOC vs HON, MMM: Return-on-Tangible-Equity Comparison
For the Conglomerates subindustry, ITOCHU'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.
ITOCHU Return-on-Tangible-Equity vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, ITOCHU's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ITOCHU'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 (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 14.89% mean?
ITOCHU (WBO:IOC) has a Return-on-Tangible-Equity of 14.89% 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 ITOCHU and its competitors. This is 25% below median its historical median of 19.95. Over the past decade, ITOCHU's Return-on-Tangible-Equity has ranged from 18.17 to 30.91. According to the industry distribution chart, ITOCHU ranks #109 out of 550 companies in the Conglomerates industry, placing it in the top 19.8%.
Is ITOCHU's Return-on-Tangible-Equity too high?
ITOCHU's current Return-on-Tangible-Equity of 14.89% is 25% below median its 10-year median of 19.95. Over the past 10 years, this metric has ranged from a low of 18.17 to a high of 30.91. The Conglomerates industry median Return-on-Tangible-Equity is 7.44. ITOCHU's value of 14.89% is 100.1% above this industry median. Based on the distribution chart, ITOCHU ranks #109 out of 550 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, ITOCHU has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ITOCHU's Return-on-Tangible-Equity compare to HON and MMM?
According to the Conglomerates industry distribution chart, ITOCHU ranks #109 out of 550 companies for Return-on-Tangible-Equity. This places ITOCHU in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.44. ITOCHU's value of 14.89% is 100.1% above this benchmark. Historically, ITOCHU's own Return-on-Tangible-Equity has ranged from 18.17 to 30.91 over the past decade. While the company's 10-year median is 19.95 vs. the industry median of 7.44, ITOCHU has consistently been above 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 Conglomerates company?
The median Return-on-Tangible-Equity among Conglomerates companies is 7.44, based on 550 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. ITOCHU's current Return-on-Tangible-Equity of 14.89% is 100.1% above 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 ITOCHU and its competitors. For the Conglomerates industry, the median Return-on-Tangible-Equity is 7.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ITOCHU's current Return-on-Tangible-Equity is 14.89%, which is 25% below median its own 10-year median of 19.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITOCHU stock overvalued right now?
Based on GuruFocus' analysis, ITOCHU (WBO:IOC) is currently considered Modestly Overvalued. The stock's GF Value™ is €8.67, compared to a current price of €10.23 — trading 18% above its estimated fair value. The current Return-on-Tangible-Equity is 14.89%, which is 25% below median its 10-year median of 19.95 and 100.1% above the Conglomerates industry median of 7.44. ITOCHU's overall GF Score™ is 77/100 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 ITOCHU (WBO:IOC), the current Return-on-Tangible-Equity is 14.89% 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 ITOCHU (WBO:IOC) Overvalued in 2026?
Based on GuruFocus' analysis, ITOCHU stock appears to be overvalued.
The current stock price of €10.23 is trading 18% above its estimated GF Value™ of €8.67.
GuruFocus considers ITOCHU to be Modestly Overvalued.
Key valuation signals for WBO:IOC:
Return-on-Tangible-Equity: 14.89% (25% below median its 10-year median of 19.95)
GF Value™: €8.67 vs. price of €10.23 (18% above fair value)
Industry Position: 100.1% above the Conglomerates median (#109 of 550)
No single metric tells the full story. See the WBO:IOC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Itochu is a general trading house, or sogo shosha, a conglomerate type unique to Japan. The primary driver for sogo shoshas is trading and intermediation between businesses and leveraging their wide domestic and global information and contact networks to extract value. Itochu has historical roots as a textile trader, but over the years has expanded its portfolio from upstream minerals production, to midstream industrial machinery, food processing, and information and communication technology, and all the way to downstream textiles, convenience stores (Family Mart) and realty. Among the Big Five sogo shoshas, Itochu has the highest exposure to the nonresources businesses, and to the domestic business. It continues to skew its future investments toward the downstream and consumer businesses.
77GF Score
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