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SYSTEMS DESIGN CoTSE:3766 72 Return-on-Tangible-Asset is 7.77% as of Mar. 2026, which is 88% above its 10-year median of 4.13. GuruFocus rates TSE:3766 with a GF Score™ of 72/100 and a GF Value™ of 円1,045.29 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,892 Software companies, SYSTEMS DESIGN Co ranks better than 64.32% 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. SYSTEMS DESIGN Co's annualizedNet Income for the quarter that ended in Mar. 2026 was 円518 Mil. SYSTEMS DESIGN Co's average total tangible assets for the quarter that ended in Mar. 2026 was 円6,661 Mil. Therefore, SYSTEMS DESIGN Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 7.77%.
The historical rank and industry rank for SYSTEMS DESIGN Co's Return-on-Tangible-Asset or its related term are showing as below:
TSE:3766'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -5.51 Med: 4.13 Max: 7.04
Current: 6.05
During the past 13 years, SYSTEMS DESIGN Co's highest Return-on-Tangible-Asset was 7.04%. The lowest was -5.51%. And the median was 4.13%.
TSE:3766's Return-on-Tangible-Asset is ranked better than 64.32% of 2892
companies
in the Software industry
Industry Median: 2.05
vs TSE:3766: 6.05
SYSTEMS DESIGN Co (TSE:3766) 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.
SYSTEMS DESIGN Co Return-on-Tangible-Asset Related Terms
SYSTEMS DESIGN Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for SYSTEMS DESIGN 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.
TSE:3766 vs IBM, ACN, FISV: Return-on-Tangible-Asset Comparison
For the Information Technology Services subindustry, SYSTEMS DESIGN 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.
SYSTEMS DESIGN Co Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, SYSTEMS DESIGN Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where SYSTEMS DESIGN 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 four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 7.77% mean?
SYSTEMS DESIGN Co (TSE:3766) has a Return-on-Tangible-Asset of 7.77% 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 SYSTEMS DESIGN Co and its competitors. This is 88% above median its historical median of 4.13. According to the industry distribution chart, SYSTEMS DESIGN Co ranks #1032 out of 2892 companies in the Software industry, placing it in the top 35.7%.
Is SYSTEMS DESIGN Co's Return-on-Tangible-Asset too high?
SYSTEMS DESIGN Co's current Return-on-Tangible-Asset of 7.77% is 88% above median its 10-year median of 4.13. The Software industry median Return-on-Tangible-Asset is 2.05. SYSTEMS DESIGN Co's value of 7.77% is 279% above this industry median. Based on the distribution chart, SYSTEMS DESIGN Co ranks #1032 out of 2892 companies in the Software industry, which is above the industry midpoint. Overall, SYSTEMS DESIGN Co has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SYSTEMS DESIGN Co's Return-on-Tangible-Asset compare to IBM and ACN?
According to the Software industry distribution chart, SYSTEMS DESIGN Co ranks #1032 out of 2892 companies for Return-on-Tangible-Asset. This puts SYSTEMS DESIGN Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.05. SYSTEMS DESIGN Co's value of 7.77% is 279% above this benchmark. While the company's 10-year median is 4.13 vs. the industry median of 2.05, SYSTEMS DESIGN 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 2.05, 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. SYSTEMS DESIGN Co's current Return-on-Tangible-Asset of 7.77% is 279% 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 SYSTEMS DESIGN Co and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SYSTEMS DESIGN Co's current Return-on-Tangible-Asset is 7.77%, which is 88% above median its own 10-year median of 4.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SYSTEMS DESIGN Co stock overvalued right now?
Based on GuruFocus' analysis, SYSTEMS DESIGN Co (TSE:3766) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,045.29, compared to a current price of 円1,426.00 — trading 36.4% above its estimated fair value. The current Return-on-Tangible-Asset is 7.77%, which is 88% above median its 10-year median of 4.13 and 279% above the Software industry median of 2.05. SYSTEMS DESIGN Co's overall GF Score™ is 72/100 with 3 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 SYSTEMS DESIGN Co (TSE:3766), the current Return-on-Tangible-Asset is 7.77% 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 SYSTEMS DESIGN Co (TSE:3766) Overvalued in 2026?
Based on GuruFocus' analysis, SYSTEMS DESIGN Co stock appears to be overvalued.
The current stock price of 円1,426.00 is trading 36.4% above its estimated GF Value™ of 円1,045.29.
GuruFocus considers SYSTEMS DESIGN Co to be Significantly Overvalued.
Key valuation signals for TSE:3766:
Return-on-Tangible-Asset: 7.77% (88% above median its 10-year median of 4.13)
GF Value™: 円1,045.29 vs. price of 円1,426.00 (36.4% above fair value)
Industry Position: 279% above the Software median (#1032 of 2892)
No single metric tells the full story. See the TSE:3766 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SYSTEMS DESIGN Co Ltd is an information technology service provider in Japan. The business of the company includes system development, integration, outsourcing business, system operation, data solution, and product service. The services offered by the company include quality control system, accounting system, a repair service system, and a dealer management system.
72GF Score
Get the complete analysis for TSE:3766
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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