Sougou Shouken Co (TSE:7850) Return-on-Tangible-Asset: 22.02% (As of Jan. 2026) — 802% Above Median

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TSE:7850 Sougou Shouken Co Ltd TSE:7850
66 GF Score
Price 円808.00
GF Value 円897.82
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is Sougou Shouken Co Return-on-Tangible-Asset?

Sougou Shouken Co TSE:7850 +0.37% 66 Return-on-Tangible-Asset is 22.02% as of Jan. 2026, which is 802% above its 10-year median of 2.44. GuruFocus rates TSE:7850 with a GF Score™ of 66/100 and a GF Value™ of 円897.82 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,093 Business Services companies, Sougou Shouken Co ranks worse than 65.14% 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. Sougou Shouken Co's annualized Net Income for the quarter that ended in Jan. 2026 was 円2,379 Mil. Sougou Shouken Co's average total tangible assets for the quarter that ended in Jan. 2026 was 円10,804 Mil. Therefore, Sougou Shouken Co's annualized Return-on-Tangible-Asset for the quarter that ended in Jan. 2026 was 22.02%.

The historical rank and industry rank for Sougou Shouken Co's Return-on-Tangible-Asset or its related term are showing as below:

TSE:7850' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -1.91   Med: 2.44   Max: 4.2
Current: 1.71

During the past 13 years, Sougou Shouken Co's highest Return-on-Tangible-Asset was 4.20%. The lowest was -1.91%. And the median was 2.44%.

TSE:7850's Return-on-Tangible-Asset is ranked worse than
65.14% of 1093 companies
in the Business Services industry
Industry Median: 4.09 vs TSE:7850: 1.71

Sougou Shouken Co  (TSE:7850) 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 company’s 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 company’s 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.


Sougou Shouken Co Return-on-Tangible-Asset Related Terms


Sougou Shouken Co Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for Sougou Shouken 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.

Sougou Shouken Co Return-on-Tangible-Asset Chart

Sougou Shouken Co Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.80 2.01 2.47 3.52 4.20

Sougou Shouken Co Quarterly Data
Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Return-on-Tangible-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.33 -19.01 4.24 22.02 -7.43

TSE:7850 vs CTAS, CPRT, GPN: Return-on-Tangible-Asset Comparison

For the Specialty Business Services subindustry, Sougou Shouken 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.


Sougou Shouken Co Return-on-Tangible-Asset vs Business Services Industry

For the Business Services industry and Industrials sector, Sougou Shouken Co's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Sougou Shouken Co's Return-on-Tangible-Asset falls into.


TSE:7850
66GF Score
Sougou Shouken Co Ltd TSE:7850
Return-on-Tangible-Asset is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sougou Shouken Co Return-on-Tangible-Asset Calculation

Sougou Shouken Co's annualized Return-on-Tangible-Asset for the fiscal year that ended in Jul. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Jul. 2025 )  (A: Jul. 2024 )(A: Jul. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Jul. 2025 )  (A: Jul. 2024 )(A: Jul. 2025 )
=319.659/( (7484.202+7754.99)/ 2 )
=319.659/7619.596
=4.20 %

Sougou Shouken Co's annualized Return-on-Tangible-Asset for the quarter that ended in Jan. 2026 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Jan. 2026 )  (Q: Oct. 2025 )(Q: Jan. 2026 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Jan. 2026 )  (Q: Oct. 2025 )(Q: Jan. 2026 )
=2379.108/( (11521.265+10086.851)/ 2 )
=2379.108/10804.058
=22.02 %

* 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 (Jan. 2026) net income data.

What does a Return-on-Tangible-Asset of 22.02% mean?
Sougou Shouken Co (TSE:7850) has a Return-on-Tangible-Asset of 22.02% as of Jan. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Sougou Shouken Co and its competitors. This is 802% above median its historical median of 2.44. According to the industry distribution chart, Sougou Shouken Co ranks #712 out of 1093 companies in the Business Services industry, placing it in the top 65.1%.
Is Sougou Shouken Co's Return-on-Tangible-Asset too high?
Sougou Shouken Co's current Return-on-Tangible-Asset of 22.02% is 802% above median its 10-year median of 2.44. The Business Services industry median Return-on-Tangible-Asset is 4.09. Sougou Shouken Co's value of 22.02% is 438.4% above this industry median. Based on the distribution chart, Sougou Shouken Co ranks #712 out of 1093 companies in the Business Services industry, which is below the industry midpoint. Overall, Sougou Shouken Co has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sougou Shouken Co's Return-on-Tangible-Asset compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Sougou Shouken Co ranks #712 out of 1093 companies for Return-on-Tangible-Asset. This places Sougou Shouken Co in the lower half of its industry. The industry median Return-on-Tangible-Asset is 4.09. Sougou Shouken Co's value of 22.02% is 438.4% above this benchmark. While the company's 10-year median is 2.44 vs. the industry median of 4.09, Sougou Shouken 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 Business Services company?
The median Return-on-Tangible-Asset among Business Services companies is 4.09, based on 1,093 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. Sougou Shouken Co's current Return-on-Tangible-Asset of 22.02% is 438.4% 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 Sougou Shouken Co and its competitors. For the Business Services industry, the median Return-on-Tangible-Asset is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sougou Shouken Co's current Return-on-Tangible-Asset is 22.02%, which is 802% above median its own 10-year median of 2.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sougou Shouken Co stock overvalued right now?
Based on GuruFocus' analysis, Sougou Shouken Co (TSE:7850) is currently considered Modestly Undervalued. The stock's GF Value™ is 円897.82, compared to a current price of 円808.00 — trading 10% below its estimated fair value. The current Return-on-Tangible-Asset is 22.02%, which is 802% above median its 10-year median of 2.44 and 438.4% above the Business Services industry median of 4.09. Sougou Shouken Co's overall GF Score™ is 66/100 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 Sougou Shouken Co (TSE:7850), the current Return-on-Tangible-Asset is 22.02% as of Jan. 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 Sougou Shouken Co (TSE:7850) Overvalued in 2026?

Based on GuruFocus' analysis, Sougou Shouken Co stock appears to be undervalued. The current stock price of 円808.00 is trading 10% below its estimated GF Value™ of 円897.82. GuruFocus considers Sougou Shouken Co to be Modestly Undervalued.

Key valuation signals for TSE:7850:

  • Return-on-Tangible-Asset: 22.02% (802% above median its 10-year median of 2.44)
  • GF Value™: 円897.82 vs. price of 円808.00 (10% below fair value)
  • GF Score™: 66/100 with 3 warning signs
  • Industry Position: 438.4% above the Business Services median (#712 of 1093)

No single metric tells the full story. See the TSE:7850 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sougou Shouken Co Business Description

Address 3-4-48 Higashi-Naebo2jo, Higashi-ku, Hokkaido, Sapporo, JPN, 007-0802
Sougou Shouken Co Ltd provides commercial printing services in Japan. It is engaged in planning, design, printing, and processing of leaflets, catalogs, posters, DMs, POPs, and publications. Its services include advertising inserts and flyers, POP advertising, Postures, and brochures, among others. It is also involved in printing new year cards and the production of the exhibition, seminar, and various promotional materials for event planning and sales promotion.
66GF Score

Get the complete analysis for TSE:7850

Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円808.00
Price
円897.82
GF Value