NeoJapanNEOJF 87 Return-on-Tangible-Equity is 25.96% as of Jan. 2026, which is 58% above its 10-year median of 16.45. GuruFocus rates NEOJF with a GF Score™ of 87/100 and a GF Value™ of $11.88 (Modestly Undervalued). Among 2,467 Software companies, NeoJapan ranks better than 74.1% 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. NeoJapan's annualized net income for the quarter that ended in Jan. 2026 was $11.67 Mil. NeoJapan's average shareholder tangible equity for the quarter that ended in Jan. 2026 was $44.95 Mil. Therefore, NeoJapan's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2026 was 25.96%.
The historical rank and industry rank for NeoJapan's Return-on-Tangible-Equity or its related term are showing as below:
NEOJF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.19 Med: 16.45 Max: 27.69
Current: 27.61
During the past 12 years, NeoJapan's highest Return-on-Tangible-Equity was 27.69%. The lowest was 11.19%. And the median was 16.45%.
NEOJF's Return-on-Tangible-Equity is ranked better than 74.1% of 2467
companies
in the Software industry
Industry Median: 8.82
vs NEOJF: 27.61
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.
NeoJapan Return-on-Tangible-Equity Related Terms
NeoJapan Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for NeoJapan'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.
NEOJF vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, NeoJapan'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.
NeoJapan Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, NeoJapan's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where NeoJapan'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 (Jan. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 25.96% mean?
NeoJapan (NEOJF) has a Return-on-Tangible-Equity of 25.96% as of Jan. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on NeoJapan and its competitors. This is 58% above median its historical median of 16.45. Over the past decade, NeoJapan's Return-on-Tangible-Equity has ranged from 11.19 to 27.69. According to the industry distribution chart, NeoJapan ranks #639 out of 2467 companies in the Software industry, placing it in the top 25.9%.
Is NeoJapan's Return-on-Tangible-Equity too high?
NeoJapan's current Return-on-Tangible-Equity of 25.96% is 58% above median its 10-year median of 16.45. Over the past 10 years, this metric has ranged from a low of 11.19 to a high of 27.69. The Software industry median Return-on-Tangible-Equity is 8.82. NeoJapan's value of 25.96% is 194.3% above this industry median. Based on the distribution chart, NeoJapan ranks #639 out of 2467 companies in the Software industry, which is above the industry midpoint. Overall, NeoJapan has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NeoJapan's Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, NeoJapan ranks #639 out of 2467 companies for Return-on-Tangible-Equity. This puts NeoJapan in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.82. NeoJapan's value of 25.96% is 194.3% above this benchmark. Historically, NeoJapan's own Return-on-Tangible-Equity has ranged from 11.19 to 27.69 over the past decade. While the company's 10-year median is 16.45 vs. the industry median of 8.82, NeoJapan 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-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.82, based on 2,467 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. NeoJapan's current Return-on-Tangible-Equity of 25.96% is 194.3% 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 NeoJapan and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NeoJapan's current Return-on-Tangible-Equity is 25.96%, which is 58% above median its own 10-year median of 16.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NeoJapan stock overvalued right now?
Based on GuruFocus' analysis, NeoJapan (NEOJF) is currently considered Modestly Undervalued. The stock's GF Value™ is $11.88, compared to a current price of $10.36 — trading 12.8% below its estimated fair value. The current Return-on-Tangible-Equity is 25.96%, which is 58% above median its 10-year median of 16.45 and 194.3% above the Software industry median of 8.82. NeoJapan's overall GF Score™ is 87/100. 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 NeoJapan (NEOJF), the current Return-on-Tangible-Equity is 25.96% 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 NeoJapan (NEOJF) Overvalued in 2026?
Based on GuruFocus' analysis, NeoJapan stock appears to be undervalued.
The current stock price of $10.36 is trading 12.8% below its estimated GF Value™ of $11.88.
GuruFocus considers NeoJapan to be Modestly Undervalued.
Key valuation signals for NEOJF:
Return-on-Tangible-Equity: 25.96% (58% above median its 10-year median of 16.45)
GF Value™: $11.88 vs. price of $10.36 (12.8% below fair value)
Industry Position: 194.3% above the Software median (#639 of 2467)
No single metric tells the full story. See the NEOJF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NeoJapan Inc develops and provides Internet application software, which includes a web-based groupware for information sharing within a firm. The firm mainly provides package software, application service and system integration. It offers desknet's NEO, a groupware software; AppSuite, a tool to create custom business applications; ChatLuck, a chat-based business communication tool; and desknet's DB, an online database system, which enables sharing of information. It also provides Denbun, a Web-based email system for corporate clients that manages, sends, and receives emails through a Web browser; desknet's DAX, a file transfer system; desknet's SSS, a Web-based sales management system; desknet's CAMS, a Web-based customer relationship management system; and desknet's Blog, a blog system.
87GF Score
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