SECOM CoSOMLF 74 Return-on-Tangible-Equity is 11.66% as of Mar. 2026, which is 21% above its 10-year median of 9.64. GuruFocus rates SOMLF with a GF Score™ of 74/100 and a GF Value™ of $32.63 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,010 Business Services companies, SECOM Co ranks worse than 52.48% 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. SECOM Co's annualized net income for the quarter that ended in Mar. 2026 was $862 Mil. SECOM Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $7,395 Mil. Therefore, SECOM Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.66%.
The historical rank and industry rank for SECOM Co's Return-on-Tangible-Equity or its related term are showing as below:
SOMLF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.98 Med: 9.64 Max: 11.27
Current: 9.82
During the past 13 years, SECOM Co's highest Return-on-Tangible-Equity was 11.27%. The lowest was 7.98%. And the median was 9.64%.
SOMLF's Return-on-Tangible-Equity is ranked worse than 52.48% of 1010
companies
in the Business Services industry
Industry Median: 10.57
vs SOMLF: 9.82
SECOM Co (OTCPK:SOMLF) 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.
SECOM Co Return-on-Tangible-Equity Related Terms
SECOM Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for SECOM 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.
SOMLF vs ALLE, MSA, ADT: Return-on-Tangible-Equity Comparison
For the Security & Protection Services subindustry, SECOM 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.
SECOM Co Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, SECOM Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where SECOM 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 11.66% mean?
SECOM Co (SOMLF) has a Return-on-Tangible-Equity of 11.66% 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 SECOM Co and its competitors. This is 21% above median its historical median of 9.64. Over the past decade, SECOM Co's Return-on-Tangible-Equity has ranged from 7.98 to 11.27. According to the industry distribution chart, SECOM Co ranks #530 out of 1010 companies in the Business Services industry, placing it in the top 52.5%.
Is SECOM Co's Return-on-Tangible-Equity too high?
SECOM Co's current Return-on-Tangible-Equity of 11.66% is 21% above median its 10-year median of 9.64. Over the past 10 years, this metric has ranged from a low of 7.98 to a high of 11.27. The Business Services industry median Return-on-Tangible-Equity is 10.57. SECOM Co's value of 11.66% is 10.3% above this industry median. Based on the distribution chart, SECOM Co ranks #530 out of 1010 companies in the Business Services industry, which is below the industry midpoint. Overall, SECOM Co has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SECOM Co's Return-on-Tangible-Equity compare to ALLE and MSA?
According to the Business Services industry distribution chart, SECOM Co ranks #530 out of 1010 companies for Return-on-Tangible-Equity. This places SECOM Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.57. SECOM Co's value of 11.66% is 10.3% above this benchmark. Historically, SECOM Co's own Return-on-Tangible-Equity has ranged from 7.98 to 11.27 over the past decade. While the company's 10-year median is 9.64 vs. the industry median of 10.57, SECOM Co 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.57, based on 1,010 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. SECOM Co's current Return-on-Tangible-Equity of 11.66% is 10.3% 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 SECOM Co and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SECOM Co's current Return-on-Tangible-Equity is 11.66%, which is 21% above median its own 10-year median of 9.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SECOM Co stock overvalued right now?
Based on GuruFocus' analysis, SECOM Co (SOMLF) is currently considered Modestly Overvalued. The stock's GF Value™ is $32.63, compared to a current price of $40.05 — trading 22.7% above its estimated fair value. The current Return-on-Tangible-Equity is 11.66%, which is 21% above median its 10-year median of 9.64 and 10.3% above the Business Services industry median of 10.57. SECOM Co's overall GF Score™ is 74/100 with 7 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 SECOM Co (SOMLF), the current Return-on-Tangible-Equity is 11.66% 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 SECOM Co (SOMLF) Overvalued in 2026?
Based on GuruFocus' analysis, SECOM Co stock appears to be overvalued.
The current stock price of $40.05 is trading 22.7% above its estimated GF Value™ of $32.63.
GuruFocus considers SECOM Co to be Modestly Overvalued.
Key valuation signals for SOMLF:
Return-on-Tangible-Equity: 11.66% (21% above median its 10-year median of 9.64)
GF Value™: $32.63 vs. price of $40.05 (22.7% above fair value)
Industry Position: 10.3% above the Business Services median (#530 of 1010)
No single metric tells the full story. See the SOMLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SECOM Co Ltd is a provider of security services and surveillance systems. The company operates seven business segments. BPO ICT segment provides information security, disaster response, data center, and EPO services. Disaster Prevention supplies fire alarms, extinguishing systems, and other equipment for offices, plants, tunnels, cultural properties, ships, and homes. Geospatial Information Services offers mapping and related services to governments in Japan and abroad. Insurance designs products reflecting risk reduction and specialized health coverage. Medical Services covers home care, nursing, senior residences, medical records, and equipment sales. Security Services delivers centralized systems for safety and monitoring. Others include real estate leasing and construction support.
74GF Score
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