FREKF (Freee KK) Return-on-Tangible-Equity: 4.00% (As of Dec. 2025)


FREKF Freee KK FREKF
64 GF Score
Price $11.85
GF Value $34.08
Valuation Possible Value Trap
! 4 Warning Signs
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What is Freee KK Return-on-Tangible-Equity?

Freee KK FREKF 64 Return-on-Tangible-Equity is 4.00% as of Dec. 2025. GuruFocus rates FREKF with a GF Score™ of 64/100 and a GF Value™ of $34.08 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,472 Software companies, Freee KK ranks better than 86.04% on this metric.

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. Freee KK's annualized net income for the quarter that ended in Dec. 2025 was $3.9 Mil. Freee KK's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $97.1 Mil. Therefore, Freee KK's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 4.00%.

The historical rank and industry rank for Freee KK's Return-on-Tangible-Equity or its related term are showing as below:

FREKF' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -67.23   Med: -34.54   Max: 69.62
Current: 69.62

During the past 7 years, Freee KK's highest Return-on-Tangible-Equity was 69.62%. The lowest was -67.23%. And the median was -34.54%.

FREKF's Return-on-Tangible-Equity is ranked better than
86.04% of 2472 companies
in the Software industry
Industry Median: 8.76 vs FREKF: 69.62

Freee KK  (OTCPK:FREKF) 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.


Freee KK Return-on-Tangible-Equity Related Terms


Freee KK Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Freee KK'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.

Freee KK Return-on-Tangible-Equity Chart

Freee KK Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Return-on-Tangible-Equity
Get a 7-Day Free Trial -9.98 -26.59 -38.26 -44.08 8.82

Freee KK Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Equity 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 -244.85 263.27 4.00 4.00 0.63

FREKF vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison

For the Software - Application subindustry, Freee KK'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.


Freee KK Return-on-Tangible-Equity vs Software Industry

For the Software industry and Technology sector, Freee KK's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Freee KK's Return-on-Tangible-Equity falls into.


FREKF
64GF Score
Freee KK FREKF
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Freee KK Return-on-Tangible-Equity Calculation

Freee KK's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jun. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=9.482/( (107.388+107.605 )/ 2 )
=9.482/107.4965
=8.82 %

Freee KK's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=3.888/( (101.518+92.768)/ 2 )
=3.888/97.143
=4.00 %

* 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 (Dec. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 4.00% mean?
Freee KK (FREKF) has a Return-on-Tangible-Equity of 4.00% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Freee KK and its competitors. According to the industry distribution chart, Freee KK ranks #345 out of 2472 companies in the Software industry, placing it in the top 14%.
Is Freee KK's Return-on-Tangible-Equity too high?
Freee KK's current Return-on-Tangible-Equity is 4.00%. The Software industry median Return-on-Tangible-Equity is 8.76. Freee KK's value of 4.00% is 54.3% below this industry median. Based on the distribution chart, Freee KK ranks #345 out of 2472 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Freee KK has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Freee KK's Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, Freee KK ranks #345 out of 2472 companies for Return-on-Tangible-Equity. This places Freee KK in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.76. Freee KK's value of 4.00% is 54.3% below 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 8.76, based on 2,472 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. Freee KK's current Return-on-Tangible-Equity of 4.00% is 54.3% below 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 Freee KK and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Freee KK's current Return-on-Tangible-Equity is 4.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freee KK stock overvalued right now?
Based on GuruFocus' analysis, Freee KK (FREKF) is currently considered Possible Value Trap. The stock's GF Value™ is $34.08, compared to a current price of $11.85 — trading 65.2% below its estimated fair value. The current Return-on-Tangible-Equity is 4.00% and 54.3% below the Software industry median of 8.76. Freee KK's overall GF Score™ is 64/100 with 4 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 Freee KK (FREKF), the current Return-on-Tangible-Equity is 4.00% as of Dec. 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 Freee KK (FREKF) Overvalued in 2026?

Based on GuruFocus' analysis, Freee KK stock appears to be undervalued. The current stock price of $11.85 is trading 65.2% below its estimated GF Value™ of $34.08. GuruFocus considers Freee KK to be Possible Value Trap.

Key valuation signals for FREKF:

  • Return-on-Tangible-Equity: 4.00%
  • GF Value™: $34.08 vs. price of $11.85 (65.2% below fair value)
  • GF Score™: 64/100 with 4 warning signs
  • Industry Position: 54.3% below the Software median (#345 of 2472)

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


Freee KK Business Description

Other Exchanges 4478:Japan
Address 2-8-1 Nishi-Gotanda, Shinagawa-ku, Gotanda First Building 9th Floor, Tokyo, JPN, 141-0031
Freee KK is a developer of cloud-based software. Its software products include Cloud Accounting software, Cloud HR Labor software, Cloud ERP for Midsize companies, among others.
64GF Score

Get the complete analysis for FREKF

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

$11.85
Price
$34.08
GF Value