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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sofcom Systems's annualized net income for the quarter that ended in Mar. 2026 was ₹6.80 Mil. Sofcom Systems's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹66.77 Mil. Therefore, Sofcom Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 10.18%.
The historical rank and industry rank for Sofcom Systems's Return-on-Tangible-Equity or its related term are showing as below:
BOM:538923'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -26.02 Med: -0.37 Max: 50.6
Current: 8.22
During the past 13 years, Sofcom Systems's highest Return-on-Tangible-Equity was 50.60%. The lowest was -26.02%. And the median was -0.37%.
BOM:538923's Return-on-Tangible-Equity is ranked worse than 52.72% of 2483
companies
in the Software industry
Industry Median: 9.69
vs BOM:538923: 8.22
Sofcom Systems (BOM:538923) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sofcom Systems Return-on-Tangible-Equity Related Terms
Sofcom Systems Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sofcom Systems's Return-on-Tangible-Equity 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.
BOM:538923 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Sofcom Systems's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Sofcom Systems Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Sofcom Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sofcom Systems's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 10.18% mean?
Sofcom Systems (BOM:538923) has a Return-on-Tangible-Equity of 10.18% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sofcom Systems and its competitors. According to the industry distribution chart, Sofcom Systems ranks #1309 out of 2483 companies in the Software industry, placing it in the top 52.7%.
Is Sofcom Systems' Return-on-Tangible-Equity too high?
Sofcom Systems' current Return-on-Tangible-Equity is 10.18%. The Software industry median Return-on-Tangible-Equity is 9.69. Sofcom Systems' value of 10.18% is 5.1% above this industry median. Based on the distribution chart, Sofcom Systems ranks #1309 out of 2483 companies in the Software industry, which is below the industry midpoint. Overall, Sofcom Systems has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sofcom Systems' Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Sofcom Systems ranks #1309 out of 2483 companies for Return-on-Tangible-Equity. This places Sofcom Systems in the lower half of its industry. The industry median Return-on-Tangible-Equity is 9.69. Sofcom Systems' value of 10.18% is 5.1% 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-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 9.69, based on 2,483 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sofcom Systems's current Return-on-Tangible-Equity of 10.18% is 5.1% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sofcom Systems and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sofcom Systems's current Return-on-Tangible-Equity is 10.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sofcom Systems stock overvalued right now?
Based on GuruFocus' analysis, Sofcom Systems (BOM:538923) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹8.66, compared to a current price of ₹19.39 — trading 123.9% above its estimated fair value. The current Return-on-Tangible-Equity is 10.18% and 5.1% above the Software industry median of 9.69. Sofcom Systems' overall GF Score™ is 37/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sofcom Systems (BOM:538923), the current Return-on-Tangible-Equity is 10.18% 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 Sofcom Systems (BOM:538923) Overvalued in 2026?
Based on GuruFocus' analysis, Sofcom Systems stock appears to be overvalued.
The current stock price of ₹19.39 is trading 123.9% above its estimated GF Value™ of ₹8.66.
GuruFocus considers Sofcom Systems to be Significantly Overvalued.
Key valuation signals for BOM:538923:
Return-on-Tangible-Equity: 10.18%
GF Value™: ₹8.66 vs. price of ₹19.39 (123.9% above fair value)
Industry Position: 5.1% above the Software median (#1309 of 2483)
No single metric tells the full story. See the BOM:538923 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sofcom Systems Ltd provides consultancy for software development in the form of services, turnkey projects, and products for the domestic and export market. The software development is targeted towards the distribution, banking, telecommunication, and manufacturing sectors. It also offers software maintenance, reengineering, and downsizing of software applications in these market segments. The company is providing information technology solutions to both commercial and government clients. The Company is engaged in the trading of Software & other items and providing software consultancy in India. The Company derives revenues from sale of software and consultancy.
37GF Score
Get the complete analysis for BOM:538923
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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