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Japan Process Development CoTSE:9651 +1.24%83 Return-on-Tangible-Asset is 7.99% as of May. 2026, which is 60% above its 10-year median of 4.98. GuruFocus rates TSE:9651 with a GF Score™ of 83/100 and a GF Value™ of 円1,766.46 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,893 Software companies, Japan Process Development Co ranks better than 69.72% on this metric.
Japan Process Development Co (TSE:9651) 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.
Japan Process Development Co Return-on-Tangible-Asset Related Terms
Japan Process Development Co Return-on-Tangible-Asset Historical Data
* 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.
Japan Process Development Co Return-on-Tangible-Asset Chart
TSE:9651 vs QH, SHOP, UBER: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, Japan Process Development 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.
Japan Process Development Co Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Japan Process Development Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Japan Process Development 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 (May. 2026) net income data.
What does a Return-on-Tangible-Asset of 7.99% mean?
Japan Process Development Co (TSE:9651) has a Return-on-Tangible-Asset of 7.99% as of May. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Japan Process Development Co and its competitors. This is 60% above median its historical median of 4.98. Over the past decade, Japan Process Development Co's Return-on-Tangible-Asset has ranged from 3.19 to 10.86. According to the industry distribution chart, Japan Process Development Co ranks #876 out of 2893 companies in the Software industry, placing it in the top 30.3%.
Is Japan Process Development Co's Return-on-Tangible-Asset too high?
Japan Process Development Co's current Return-on-Tangible-Asset of 7.99% is 60% above median its 10-year median of 4.98. Over the past 10 years, this metric has ranged from a low of 3.19 to a high of 10.86. The Software industry median Return-on-Tangible-Asset is 2.17. Japan Process Development Co's value of 7.99% is 268.2% above this industry median. Based on the distribution chart, Japan Process Development Co ranks #876 out of 2893 companies in the Software industry, which is above the industry midpoint. Overall, Japan Process Development Co has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Process Development Co's Return-on-Tangible-Asset compare to QH and SHOP?
According to the Software industry distribution chart, Japan Process Development Co ranks #876 out of 2893 companies for Return-on-Tangible-Asset. This puts Japan Process Development Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.17. Japan Process Development Co's value of 7.99% is 268.2% above this benchmark. Historically, Japan Process Development Co's own Return-on-Tangible-Asset has ranged from 3.19 to 10.86 over the past decade. While the company's 10-year median is 4.98 vs. the industry median of 2.17, Japan Process Development 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 2.17, based on 2,893 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. Japan Process Development Co's current Return-on-Tangible-Asset of 7.99% is 268.2% 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 Japan Process Development Co and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Process Development Co's current Return-on-Tangible-Asset is 7.99%, which is 60% above median its own 10-year median of 4.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Process Development Co stock overvalued right now?
Based on GuruFocus' analysis, Japan Process Development Co (TSE:9651) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,766.46, compared to a current price of 円2,039.00 — trading 15.4% above its estimated fair value. The current Return-on-Tangible-Asset is 7.99%, which is 60% above median its 10-year median of 4.98 and 268.2% above the Software industry median of 2.17. Japan Process Development Co's overall GF Score™ is 83/100 with 2 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 Japan Process Development Co (TSE:9651), the current Return-on-Tangible-Asset is 7.99% as of May. 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 Japan Process Development Co (TSE:9651) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Process Development Co stock appears to be overvalued.
The current stock price of 円2,039.00 is trading 15.4% above its estimated GF Value™ of 円1,766.46.
GuruFocus considers Japan Process Development Co to be Modestly Overvalued.
Key valuation signals for TSE:9651:
Return-on-Tangible-Asset: 7.99% (60% above median its 10-year median of 4.98)
GF Value™: 円1,766.46 vs. price of 円2,039.00 (15.4% above fair value)
Industry Position: 268.2% above the Software median (#876 of 2893)
No single metric tells the full story. See the TSE:9651 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Process Development Co Ltd is a Japan based system integration and software development company. It is involved in the control system business, automotive system business, specific information system business, embedded systems business, IT service business and others.
83GF Score
Get the complete analysis for TSE:9651
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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