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K Way CoROCO:5201 -0.73%66 Return-on-Tangible-Equity is 1.44% as of Dec. 2025, which is 87% below its 10-year median of 11.51. GuruFocus rates ROCO:5201 with a GF Score™ of 66/100 and a GF Value™ of NT$41.13 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,477 Software companies, K Way Co ranks worse than 67.86% 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. K Way Co's annualized net income for the quarter that ended in Dec. 2025 was NT$7.8 Mil. K Way Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$545.4 Mil. Therefore, K Way Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 1.44%.
The historical rank and industry rank for K Way Co's Return-on-Tangible-Equity or its related term are showing as below:
ROCO:5201'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.41 Med: 11.51 Max: 24.79
Current: -0.41
During the past 13 years, K Way Co's highest Return-on-Tangible-Equity was 24.79%. The lowest was -0.41%. And the median was 11.51%.
ROCO:5201's Return-on-Tangible-Equity is ranked worse than 67.86% of 2477
companies
in the Software industry
Industry Median: 8.83
vs ROCO:5201: -0.41
K Way Co (ROCO:5201) 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.
K Way Co Return-on-Tangible-Equity Related Terms
K Way Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for K Way Co'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.
ROCO:5201 vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, K Way Co'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.
K Way Co Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, K Way Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where K Way Co'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 (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 1.44% mean?
K Way Co (ROCO:5201) has a Return-on-Tangible-Equity of 1.44% 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 K Way Co and its competitors. This is 87% below median its historical median of 11.51. According to the industry distribution chart, K Way Co ranks #1681 out of 2477 companies in the Software industry, placing it in the top 67.9%.
Is K Way Co's Return-on-Tangible-Equity too high?
K Way Co's current Return-on-Tangible-Equity of 1.44% is 87% below median its 10-year median of 11.51. The Software industry median Return-on-Tangible-Equity is 8.83. K Way Co's value of 1.44% is 83.7% below this industry median. Based on the distribution chart, K Way Co ranks #1681 out of 2477 companies in the Software industry, which is below the industry midpoint. Overall, K Way Co has a GF Score™ of 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does K Way Co's Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, K Way Co ranks #1681 out of 2477 companies for Return-on-Tangible-Equity. This places K Way Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.83. K Way Co's value of 1.44% is 83.7% below this benchmark. While the company's 10-year median is 11.51 vs. the industry median of 8.83, K Way Co has consistently been below 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 8.83, based on 2,477 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. K Way Co's current Return-on-Tangible-Equity of 1.44% is 83.7% 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 K Way Co and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. K Way Co's current Return-on-Tangible-Equity is 1.44%, which is 87% below median its own 10-year median of 11.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is K Way Co stock overvalued right now?
Based on GuruFocus' analysis, K Way Co (ROCO:5201) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$41.13, compared to a current price of NT$27.15 — trading 34% below its estimated fair value. The current Return-on-Tangible-Equity is 1.44%, which is 87% below median its 10-year median of 11.51 and 83.7% below the Software industry median of 8.83. K Way Co's overall GF Score™ is 66/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For K Way Co (ROCO:5201), the current Return-on-Tangible-Equity is 1.44% 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 K Way Co (ROCO:5201) Overvalued in 2026?
Based on GuruFocus' analysis, K Way Co stock appears to be undervalued.
The current stock price of NT$27.15 is trading 34% below its estimated GF Value™ of NT$41.13.
GuruFocus considers K Way Co to be Significantly Undervalued.
Key valuation signals for ROCO:5201:
Return-on-Tangible-Equity: 1.44% (87% below median its 10-year median of 11.51)
GF Value™: NT$41.13 vs. price of NT$27.15 (34% below fair value)
Industry Position: 83.7% below the Software median (#1681 of 2477)
No single metric tells the full story. See the ROCO:5201 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
K Way Co Ltd operates as a software company in financial industry. The company is focuses on the development of key system software in the securities and financial industry for trading, settlement, market data, FIX, trading tools. It mainly offers stable and speedy trading system, cross platform system, database settlement system, money management system, investment account management system & others.
66GF Score
Get the complete analysis for ROCO:5201
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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