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GMO Internet groupSTU:IQ3 -1.87%82 Return-on-Tangible-Equity is 23.64% as of Dec. 2025, which is 33% below its 10-year median of 35.23. GuruFocus rates STU:IQ3 with a GF Score™ of 82/100 and a GF Value™ of €17.74 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 326 Telecommunication Services companies, GMO Internet group ranks better than 68.4% 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. GMO Internet group's annualized net income for the quarter that ended in Dec. 2025 was €69 Mil. GMO Internet group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €291 Mil. Therefore, GMO Internet group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 23.64%.
The historical rank and industry rank for GMO Internet group's Return-on-Tangible-Equity or its related term are showing as below:
STU:IQ3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -69.31 Med: 35.23 Max: 50.07
Current: 38.17
During the past 13 years, GMO Internet group's highest Return-on-Tangible-Equity was 50.07%. The lowest was -69.31%. And the median was 35.23%.
STU:IQ3's Return-on-Tangible-Equity is ranked better than 68.4% of 326
companies
in the Telecommunication Services industry
Industry Median: 14.525
vs STU:IQ3: 38.17
GMO Internet group (STU:IQ3) 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.
GMO Internet group Return-on-Tangible-Equity Related Terms
GMO Internet group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for GMO Internet group'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.
GMO Internet group Return-on-Tangible-Equity Chart
STU:IQ3 vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, GMO Internet group'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.
GMO Internet group Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, GMO Internet group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where GMO Internet group'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 23.64% mean?
GMO Internet group (STU:IQ3) has a Return-on-Tangible-Equity of 23.64% 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 GMO Internet group and its competitors. This is 33% below median its historical median of 35.23. According to the industry distribution chart, GMO Internet group ranks #103 out of 326 companies in the Telecommunication Services industry, placing it in the top 31.6%.
Is GMO Internet group's Return-on-Tangible-Equity too high?
GMO Internet group's current Return-on-Tangible-Equity of 23.64% is 33% below median its 10-year median of 35.23. The Telecommunication Services industry median Return-on-Tangible-Equity is 14.53. GMO Internet group's value of 23.64% is 62.8% above this industry median. Based on the distribution chart, GMO Internet group ranks #103 out of 326 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, GMO Internet group has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GMO Internet group's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, GMO Internet group ranks #103 out of 326 companies for Return-on-Tangible-Equity. This puts GMO Internet group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 14.53. GMO Internet group's value of 23.64% is 62.8% above this benchmark. While the company's 10-year median is 35.23 vs. the industry median of 14.53, GMO Internet group 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 Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.53, based on 326 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. GMO Internet group's current Return-on-Tangible-Equity of 23.64% is 62.8% 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 GMO Internet group and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GMO Internet group's current Return-on-Tangible-Equity is 23.64%, which is 33% below median its own 10-year median of 35.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GMO Internet group stock overvalued right now?
Based on GuruFocus' analysis, GMO Internet group (STU:IQ3) is currently considered Modestly Overvalued. The stock's GF Value™ is €17.74, compared to a current price of €21.00 — trading 18.4% above its estimated fair value. The current Return-on-Tangible-Equity is 23.64%, which is 33% below median its 10-year median of 35.23 and 62.8% above the Telecommunication Services industry median of 14.53. GMO Internet group's overall GF Score™ is 82/100 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 GMO Internet group (STU:IQ3), the current Return-on-Tangible-Equity is 23.64% 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 GMO Internet group (STU:IQ3) Overvalued in 2026?
Based on GuruFocus' analysis, GMO Internet group stock appears to be overvalued.
The current stock price of €21.00 is trading 18.4% above its estimated GF Value™ of €17.74.
GuruFocus considers GMO Internet group to be Modestly Overvalued.
Key valuation signals for STU:IQ3:
Return-on-Tangible-Equity: 23.64% (33% below median its 10-year median of 35.23)
GF Value™: €17.74 vs. price of €21.00 (18.4% above fair value)
Industry Position: 62.8% above the Telecommunication Services median (#103 of 326)
No single metric tells the full story. See the STU:IQ3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GMO Internet group Inc operates through main segment namely, Internet infrastructure business, Internet advertising and media, Internet securities, Internet financial services and Cryptocurrency. Internet infrastructure, the key segment, provides basic Internet services, such as domain hosting and e-commerce payments. Online advertising and media segment provides marketing services for online businesses. The Internet securities division provides consumer financial services, and the Cryptocurrency segment operates business pertaining to mining and exchange of cryptocurrency. The company generates the vast majority of revenue in Japan.
82GF Score
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