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Howa MachineryTSE:6203 +0.40%61 5-Year Yield-on-Cost % is 1.34 as of Aug. 15, 2026, which is 44% below its 10-year median of 2.39. GuruFocus rates TSE:6203 with a GF Score™ of 61/100 and a GF Value™ of 円1,038.56 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,898 Industrial Products companies, Howa Machinery ranks worse than 59.27% on this metric.
Howa Machinery's yield on cost for the quarter that ended in Mar. 2026 was 1.34.
The historical rank and industry rank for Howa Machinery's 5-Year Yield-on-Cost % or its related term are showing as below:
TSE:6203'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.95 Med: 2.39 Max: 3.92
Current: 1.34
During the past 13 years, Howa Machinery's highest Yield on Cost was 3.92. The lowest was 0.95. And the median was 2.39.
TSE:6203's 5-Year Yield-on-Cost % is ranked worse than 59.27% of 1898
companies
in the Industrial Products industry
Industry Median: 1.87
vs TSE:6203: 1.34
Howa Machinery (TSE:6203) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Howa Machinery 5-Year Yield-on-Cost % Related Terms
TSE:6203 vs GEV, ETN, PH: 5-Year Yield-on-Cost % Comparison
For the Specialty Industrial Machinery subindustry, Howa Machinery's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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.
Howa Machinery 5-Year Yield-on-Cost % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Howa Machinery's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Howa Machinery's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Howa Machinery is calculated as
Howa Machinery (TSE:6203) has a 5-Year Yield-on-Cost % of 1.34 as of Aug. 15, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Howa Machinery and its competitors. This is 44% below median its historical median of 2.39. Over the past decade, Howa Machinery's 5-Year Yield-on-Cost % has ranged from 0.95 to 3.92. According to the industry distribution chart, Howa Machinery ranks #1125 out of 1898 companies in the Industrial Products industry, placing it in the top 59.3%.
Is Howa Machinery's 5-Year Yield-on-Cost % too high?
Howa Machinery's current 5-Year Yield-on-Cost % of 1.34 is 44% below median its 10-year median of 2.39. Over the past 10 years, this metric has ranged from a low of 0.95 to a high of 3.92. The Industrial Products industry median 5-Year Yield-on-Cost % is 1.87. Howa Machinery's value of 1.34 is 28.3% below this industry median. Based on the distribution chart, Howa Machinery ranks #1125 out of 1898 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Howa Machinery has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Howa Machinery's 5-Year Yield-on-Cost % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Howa Machinery ranks #1125 out of 1898 companies for 5-Year Yield-on-Cost %. This places Howa Machinery in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 1.87. Howa Machinery's value of 1.34 is 28.3% below this benchmark. Historically, Howa Machinery's own 5-Year Yield-on-Cost % has ranged from 0.95 to 3.92 over the past decade. While the company's 10-year median is 2.39 vs. the industry median of 1.87, Howa Machinery 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 5-Year Yield-on-Cost % for an Industrial Products company?
The median 5-Year Yield-on-Cost % among Industrial Products companies is 1.87, based on 1,898 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Howa Machinery's current 5-Year Yield-on-Cost % of 1.34 is 28.3% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Howa Machinery and its competitors. For the Industrial Products industry, the median 5-Year Yield-on-Cost % is 1.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howa Machinery's current 5-Year Yield-on-Cost % is 1.34, which is 44% below median its own 10-year median of 2.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Howa Machinery stock overvalued right now?
Based on GuruFocus' analysis, Howa Machinery (TSE:6203) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,038.56, compared to a current price of 円1,507.00 — trading 45.1% above its estimated fair value. The current 5-Year Yield-on-Cost % is 1.34, which is 44% below median its 10-year median of 2.39 and 28.3% below the Industrial Products industry median of 1.87. Howa Machinery's overall GF Score™ is 61/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Howa Machinery (TSE:6203), the current 5-Year Yield-on-Cost % is 1.34 as of Aug. 15, 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 Howa Machinery (TSE:6203) Overvalued in 2026?
Based on GuruFocus' analysis, Howa Machinery stock appears to be overvalued.
The current stock price of 円1,507.00 is trading 45.1% above its estimated GF Value™ of 円1,038.56.
GuruFocus considers Howa Machinery to be Significantly Overvalued.
Key valuation signals for TSE:6203:
5-Year Yield-on-Cost %: 1.34 (44% below median its 10-year median of 2.39)
GF Value™: 円1,038.56 vs. price of 円1,507.00 (45.1% above fair value)
Industry Position: 28.3% below the Industrial Products median (#1125 of 1898)
No single metric tells the full story. See the TSE:6203 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Howa Machinery Ltd engages in the manufacture and sale of machine tools, pneumatic and hydraulic equipment, electronic machines, firearms, construction materials and construction machinery.
61GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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