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Nova System CoTSE:5257 +0.92%87 Return-on-Tangible-Asset is 8.60% as of Jun. 2026, which is 23% above its 10-year median of 6.99. GuruFocus rates TSE:5257 with a GF Score™ of 87/100 and a GF Value™ of 円2,989.32 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,894 Software companies, Nova System Co ranks better than 70.53% 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. Nova System Co's annualizedNet Income for the quarter that ended in Jun. 2026 was 円351 Mil. Nova System Co's average total tangible assets for the quarter that ended in Jun. 2026 was 円4,081 Mil. Therefore, Nova System Co's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 8.60%.
The historical rank and industry rank for Nova System Co's Return-on-Tangible-Asset or its related term are showing as below:
TSE:5257'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.72 Med: 6.99 Max: 11.16
Current: 8.37
During the past 6 years, Nova System Co's highest Return-on-Tangible-Asset was 11.16%. The lowest was 2.72%. And the median was 6.99%.
TSE:5257's Return-on-Tangible-Asset is ranked better than 70.53% of 2894
companies
in the Software industry
Industry Median: 2.095
vs TSE:5257: 8.37
Nova System Co (TSE:5257) 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.
Nova System Co Return-on-Tangible-Asset Related Terms
Nova System Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Nova System 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:5257 vs QH, SHOP, UBER: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, Nova System 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.
Nova System Co Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Nova System Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Nova System 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 (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 8.60% mean?
Nova System Co (TSE:5257) has a Return-on-Tangible-Asset of 8.60% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Nova System Co and its competitors. This is 23% above median its historical median of 6.99. Over the past decade, Nova System Co's Return-on-Tangible-Asset has ranged from 2.72 to 11.16. According to the industry distribution chart, Nova System Co ranks #853 out of 2894 companies in the Software industry, placing it in the top 29.5%.
Is Nova System Co's Return-on-Tangible-Asset too high?
Nova System Co's current Return-on-Tangible-Asset of 8.60% is 23% above median its 10-year median of 6.99. Over the past 10 years, this metric has ranged from a low of 2.72 to a high of 11.16. The Software industry median Return-on-Tangible-Asset is 2.10. Nova System Co's value of 8.60% is 310.5% above this industry median. Based on the distribution chart, Nova System Co ranks #853 out of 2894 companies in the Software industry, which is above the industry midpoint. Overall, Nova System Co has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nova System Co's Return-on-Tangible-Asset compare to QH and SHOP?
According to the Software industry distribution chart, Nova System Co ranks #853 out of 2894 companies for Return-on-Tangible-Asset. This puts Nova System Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.10. Nova System Co's value of 8.60% is 310.5% above this benchmark. Historically, Nova System Co's own Return-on-Tangible-Asset has ranged from 2.72 to 11.16 over the past decade. While the company's 10-year median is 6.99 vs. the industry median of 2.10, Nova System 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 2.10, based on 2,894 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. Nova System Co's current Return-on-Tangible-Asset of 8.60% is 310.5% 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 Nova System Co and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nova System Co's current Return-on-Tangible-Asset is 8.60%, which is 23% above median its own 10-year median of 6.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nova System Co stock overvalued right now?
Based on GuruFocus' analysis, Nova System Co (TSE:5257) is currently considered Fairly Valued. The stock's GF Value™ is 円2,989.32, compared to a current price of 円2,745.00 — trading 8.2% below its estimated fair value. The current Return-on-Tangible-Asset is 8.60%, which is 23% above median its 10-year median of 6.99 and 310.5% above the Software industry median of 2.10. Nova System Co's overall GF Score™ is 87/100 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 Nova System Co (TSE:5257), the current Return-on-Tangible-Asset is 8.60% as of Jun. 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 Nova System Co (TSE:5257) Overvalued in 2026?
Based on GuruFocus' analysis, Nova System Co stock appears to be undervalued.
The current stock price of 円2,745.00 is trading 8.2% below its estimated GF Value™ of 円2,989.32.
GuruFocus considers Nova System Co to be Fairly Valued.
Key valuation signals for TSE:5257:
Return-on-Tangible-Asset: 8.60% (23% above median its 10-year median of 6.99)
GF Value™: 円2,989.32 vs. price of 円2,745.00 (8.2% below fair value)
Industry Position: 310.5% above the Software median (#853 of 2894)
No single metric tells the full story. See the TSE:5257 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nova System Co Ltd is involved in the system integration business mainly for the financial and insurance industry, medical care and cloud service business. The Company's business is a single segment of software development business, and the services it provides are system integration and cloud services.
87GF Score
Get the complete analysis for TSE:5257
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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