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SHANONTSE:3976 +1.34%53 Return-on-Tangible-Asset is 16.57% as of Oct. 2025. GuruFocus rates TSE:3976 with a GF Score™ of 53/100 and a GF Value™ of 円184.69 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,892 Software companies, SHANON ranks better than 87.28% 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. SHANON's annualizedNet Income for the quarter that ended in Oct. 2025 was 円257 Mil. SHANON's average total tangible assets for the quarter that ended in Oct. 2025 was 円1,552 Mil. Therefore, SHANON's annualized Return-on-Tangible-Asset for the quarter that ended in Oct. 2025 was 16.57%.
The historical rank and industry rank for SHANON's Return-on-Tangible-Asset or its related term are showing as below:
TSE:3976'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -45.56 Med: -4.59 Max: 15.91
Current: 15.91
During the past 12 years, SHANON's highest Return-on-Tangible-Asset was 15.91%. The lowest was -45.56%. And the median was -4.59%.
TSE:3976's Return-on-Tangible-Asset is ranked better than 87.28% of 2892
companies
in the Software industry
Industry Median: 2.05
vs TSE:3976: 15.91
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.
SHANON Return-on-Tangible-Asset Related Terms
SHANON Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for SHANON'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:3976 vs QH, SHOP, UBER: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, SHANON'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.
SHANON Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, SHANON's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where SHANON'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 (Oct. 2025) net income data.
What does a Return-on-Tangible-Asset of 16.57% mean?
SHANON (TSE:3976) has a Return-on-Tangible-Asset of 16.57% as of Oct. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on SHANON and its competitors. According to the industry distribution chart, SHANON ranks #368 out of 2892 companies in the Software industry, placing it in the top 12.7%.
Is SHANON's Return-on-Tangible-Asset too high?
SHANON's current Return-on-Tangible-Asset is 16.57%. The Software industry median Return-on-Tangible-Asset is 2.05. SHANON's value of 16.57% is 708.3% above this industry median. Based on the distribution chart, SHANON ranks #368 out of 2892 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, SHANON has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SHANON's Return-on-Tangible-Asset compare to QH and SHOP?
According to the Software industry distribution chart, SHANON ranks #368 out of 2892 companies for Return-on-Tangible-Asset. This places SHANON in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.05. SHANON's value of 16.57% is 708.3% above this benchmark. 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. SHANON's current Return-on-Tangible-Asset of 16.57% is 708.3% 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 SHANON 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. SHANON's current Return-on-Tangible-Asset is 16.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SHANON stock overvalued right now?
Based on GuruFocus' analysis, SHANON (TSE:3976) is currently considered Significantly Overvalued. The stock's GF Value™ is 円184.69, compared to a current price of 円531.00 — trading 187.5% above its estimated fair value. The current Return-on-Tangible-Asset is 16.57% and 708.3% above the Software industry median of 2.05. SHANON's overall GF Score™ is 53/100 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 SHANON (TSE:3976), the current Return-on-Tangible-Asset is 16.57% as of Oct. 2025. 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 SHANON (TSE:3976) Overvalued in 2026?
Based on GuruFocus' analysis, SHANON stock appears to be overvalued.
The current stock price of 円531.00 is trading 187.5% above its estimated GF Value™ of 円184.69.
GuruFocus considers SHANON to be Significantly Overvalued.
Key valuation signals for TSE:3976:
Return-on-Tangible-Asset: 16.57%
GF Value™: 円184.69 vs. price of 円531.00 (187.5% above fair value)
Industry Position: 708.3% above the Software median (#368 of 2892)
No single metric tells the full story. See the TSE:3976 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SHANON Inc provides marketing platform and cloud application. It is engaged in the planning, development, and sale of cloud marketing solutions. It is also engaged in the provision of consulting and outsourcing services related to marketing.
53GF Score
Get the complete analysis for TSE:3976
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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