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Gstarsoft CoSHSE:688657 -14.06%60 Return-on-Tangible-Equity is 1.24% as of Mar. 2026, which is 94% below its 10-year median of 21.95. GuruFocus rates SHSE:688657 with a GF Score™ of 60/100 and a GF Value™ of ¥41.45 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,480 Software companies, Gstarsoft Co ranks worse than 60.89% 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. Gstarsoft Co's annualized net income for the quarter that ended in Mar. 2026 was ¥17.0 Mil. Gstarsoft Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥1,370.3 Mil. Therefore, Gstarsoft Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 1.24%.
The historical rank and industry rank for Gstarsoft Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:688657'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.52 Med: 21.95 Max: 47.45
Current: 3.52
During the past 13 years, Gstarsoft Co's highest Return-on-Tangible-Equity was 47.45%. The lowest was 3.52%. And the median was 21.95%.
SHSE:688657's Return-on-Tangible-Equity is ranked worse than 60.89% of 2480
companies
in the Software industry
Industry Median: 8.845
vs SHSE:688657: 3.52
Gstarsoft Co (SHSE:688657) 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.
Gstarsoft Co Return-on-Tangible-Equity Related Terms
Gstarsoft Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Gstarsoft 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.
SHSE:688657 vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Gstarsoft 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.
Gstarsoft Co Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Gstarsoft Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Gstarsoft 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 (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 1.24% mean?
Gstarsoft Co (SHSE:688657) has a Return-on-Tangible-Equity of 1.24% 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 Gstarsoft Co and its competitors. This is 94% below median its historical median of 21.95. Over the past decade, Gstarsoft Co's Return-on-Tangible-Equity has ranged from 3.52 to 47.45. According to the industry distribution chart, Gstarsoft Co ranks #1510 out of 2480 companies in the Software industry, placing it in the top 60.9%.
Is Gstarsoft Co's Return-on-Tangible-Equity too high?
Gstarsoft Co's current Return-on-Tangible-Equity of 1.24% is 94% below median its 10-year median of 21.95. Over the past 10 years, this metric has ranged from a low of 3.52 to a high of 47.45. The Software industry median Return-on-Tangible-Equity is 8.85. Gstarsoft Co's value of 1.24% is 86% below this industry median. Based on the distribution chart, Gstarsoft Co ranks #1510 out of 2480 companies in the Software industry, which is below the industry midpoint. Overall, Gstarsoft Co has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gstarsoft Co's Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, Gstarsoft Co ranks #1510 out of 2480 companies for Return-on-Tangible-Equity. This places Gstarsoft Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.85. Gstarsoft Co's value of 1.24% is 86% below this benchmark. Historically, Gstarsoft Co's own Return-on-Tangible-Equity has ranged from 3.52 to 47.45 over the past decade. While the company's 10-year median is 21.95 vs. the industry median of 8.85, Gstarsoft 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 8.85, based on 2,480 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. Gstarsoft Co's current Return-on-Tangible-Equity of 1.24% is 86% 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 Gstarsoft Co and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gstarsoft Co's current Return-on-Tangible-Equity is 1.24%, which is 94% below median its own 10-year median of 21.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gstarsoft Co stock overvalued right now?
Based on GuruFocus' analysis, Gstarsoft Co (SHSE:688657) is currently considered Possible Value Trap. The stock's GF Value™ is ¥41.45, compared to a current price of ¥27.50 — trading 33.7% below its estimated fair value. The current Return-on-Tangible-Equity is 1.24%, which is 94% below median its 10-year median of 21.95 and 86% below the Software industry median of 8.85. Gstarsoft Co's overall GF Score™ is 60/100 with 5 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 Gstarsoft Co (SHSE:688657), the current Return-on-Tangible-Equity is 1.24% 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 Gstarsoft Co (SHSE:688657) Overvalued in 2026?
Based on GuruFocus' analysis, Gstarsoft Co stock appears to be undervalued.
The current stock price of ¥27.50 is trading 33.7% below its estimated GF Value™ of ¥41.45.
GuruFocus considers Gstarsoft Co to be Possible Value Trap.
Key valuation signals for SHSE:688657:
Return-on-Tangible-Equity: 1.24% (94% below median its 10-year median of 21.95)
GF Value™: ¥41.45 vs. price of ¥27.50 (33.7% below fair value)
Industry Position: 86% below the Software median (#1510 of 2480)
No single metric tells the full story. See the SHSE:688657 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gstarsoft Co Ltd Is engaged in research & development, promotion, and sales of CAD-related software. It provides users with Haochen CAD, Haochen 3D, and Products such as Haochen CAD Viewer and related services surrounding the aforementioned products.
60GF Score
Get the complete analysis for SHSE:688657
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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