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Encourage Technologies CoTSE:3682 +1.01%70 Return-on-Tangible-Asset is 4.94% as of Mar. 2026, which is 0% below its 10-year median of 4.96. GuruFocus rates TSE:3682 with a GF Score™ of 70/100 and a GF Value™ of 円644.01 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,892 Software companies, Encourage Technologies Co ranks better than 59.13% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Encourage Technologies Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円232 Mil. Encourage Technologies Co's average total tangible assets for the quarter that ended in Mar. 2026 was 円4,705 Mil. Therefore, Encourage Technologies Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 4.94%.
The historical rank and industry rank for Encourage Technologies Co's Return-on-Tangible-Asset or its related term are showing as below:
TSE:3682'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.85 Med: 4.96 Max: 10.47
Current: 4.6
During the past 13 years, Encourage Technologies Co's highest Return-on-Tangible-Asset was 10.47%. The lowest was 2.85%. And the median was 4.96%.
TSE:3682's Return-on-Tangible-Asset is ranked better than 59.13% of 2892
companies
in the Software industry
Industry Median: 2.04
vs TSE:3682: 4.60
Encourage Technologies Co (TSE:3682) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Encourage Technologies Co Return-on-Tangible-Asset Related Terms
Encourage Technologies Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Encourage Technologies Co's Return-on-Tangible-Asset 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.
Encourage Technologies Co Return-on-Tangible-Asset Chart
TSE:3682 vs IBM, ACN, FISV: Return-on-Tangible-Asset Comparison
For the Information Technology Services subindustry, Encourage Technologies Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Encourage Technologies Co Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Encourage Technologies Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Encourage Technologies Co's Return-on-Tangible-Asset 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-Asset, the net income of the last fiscal year and the average total tangible assets 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.
What does a Return-on-Tangible-Asset of 4.94% mean?
Encourage Technologies Co (TSE:3682) has a Return-on-Tangible-Asset of 4.94% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Encourage Technologies Co and its competitors. This is near median its historical median of 4.96. Over the past decade, Encourage Technologies Co's Return-on-Tangible-Asset has ranged from 2.85 to 10.47. According to the industry distribution chart, Encourage Technologies Co ranks #1182 out of 2892 companies in the Software industry, placing it in the top 40.9%.
Is Encourage Technologies Co's Return-on-Tangible-Asset too high?
Encourage Technologies Co's current Return-on-Tangible-Asset of 4.94% is near median its 10-year median of 4.96. Over the past 10 years, this metric has ranged from a low of 2.85 to a high of 10.47. The Software industry median Return-on-Tangible-Asset is 2.04. Encourage Technologies Co's value of 4.94% is 142.2% above this industry median. Based on the distribution chart, Encourage Technologies Co ranks #1182 out of 2892 companies in the Software industry, which is above the industry midpoint. Overall, Encourage Technologies Co has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Encourage Technologies Co's Return-on-Tangible-Asset compare to IBM and ACN?
According to the Software industry distribution chart, Encourage Technologies Co ranks #1182 out of 2892 companies for Return-on-Tangible-Asset. This puts Encourage Technologies Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.04. Encourage Technologies Co's value of 4.94% is 142.2% above this benchmark. Historically, Encourage Technologies Co's own Return-on-Tangible-Asset has ranged from 2.85 to 10.47 over the past decade. While the company's 10-year median is 4.96 vs. the industry median of 2.04, Encourage Technologies Co 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-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.04, based on 2,892 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encourage Technologies Co's current Return-on-Tangible-Asset of 4.94% is 142.2% 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-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Encourage Technologies Co and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encourage Technologies Co's current Return-on-Tangible-Asset is 4.94%, which is near median its own 10-year median of 4.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Encourage Technologies Co stock overvalued right now?
Based on GuruFocus' analysis, Encourage Technologies Co (TSE:3682) is currently considered Fairly Valued. The stock's GF Value™ is 円644.01, compared to a current price of 円600.00 — trading 6.8% below its estimated fair value. The current Return-on-Tangible-Asset is 4.94%, which is near median its 10-year median of 4.96 and 142.2% above the Software industry median of 2.04. Encourage Technologies Co's overall GF Score™ is 70/100 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-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Encourage Technologies Co (TSE:3682), the current Return-on-Tangible-Asset is 4.94% 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 Encourage Technologies Co (TSE:3682) Overvalued in 2026?
Based on GuruFocus' analysis, Encourage Technologies Co stock appears to be undervalued.
The current stock price of 円600.00 is trading 6.8% below its estimated GF Value™ of 円644.01.
GuruFocus considers Encourage Technologies Co to be Fairly Valued.
Key valuation signals for TSE:3682:
Return-on-Tangible-Asset: 4.94% (near median its 10-year median of 4.96)
GF Value™: 円644.01 vs. price of 円600.00 (6.8% below fair value)
Industry Position: 142.2% above the Software median (#1182 of 2892)
No single metric tells the full story. See the TSE:3682 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Encourage Technologies Co Ltd develops software that monitors and audits user activity in IT systems. The company also provides maintenance support after the installation of the software as well consulting services.
70GF Score
Get the complete analysis for TSE:3682
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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