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HmcommTSE:265A +2.82%21 Return-on-Tangible-Equity is 6.65% as of Dec. 2025, which is 16% above its 10-year median of 5.72. GuruFocus rates TSE:265A with a GF Score™ of 21/100. The stock has 3 warning signs investors should review. Among 2,476 Software companies, Hmcomm ranks worse than 64.98% 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. Hmcomm's annualized net income for the quarter that ended in Dec. 2025 was 円96 Mil. Hmcomm's average shareholder tangible equity for the quarter that ended in Dec. 2025 was 円1,441 Mil. Therefore, Hmcomm's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 6.65%.
The historical rank and industry rank for Hmcomm's Return-on-Tangible-Equity or its related term are showing as below:
TSE:265A'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.2 Med: 5.72 Max: 13.13
Current: 1.21
During the past 4 years, Hmcomm's highest Return-on-Tangible-Equity was 13.13%. The lowest was 1.20%. And the median was 5.72%.
TSE:265A's Return-on-Tangible-Equity is ranked worse than 64.98% of 2476
companies
in the Software industry
Industry Median: 8.82
vs TSE:265A: 1.21
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.
Hmcomm Return-on-Tangible-Equity Related Terms
Hmcomm Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hmcomm'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.
TSE:265A vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Hmcomm'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.
Hmcomm Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Hmcomm's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hmcomm'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 two times the semi-annual (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 6.65% mean?
Hmcomm (TSE:265A) has a Return-on-Tangible-Equity of 6.65% 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 Hmcomm and its competitors. This is 16% above median its historical median of 5.72. Over the past decade, Hmcomm's Return-on-Tangible-Equity has ranged from 1.20 to 13.13. According to the industry distribution chart, Hmcomm ranks #1609 out of 2476 companies in the Software industry, placing it in the top 65%.
Is Hmcomm's Return-on-Tangible-Equity too high?
Hmcomm's current Return-on-Tangible-Equity of 6.65% is 16% above median its 10-year median of 5.72. Over the past 10 years, this metric has ranged from a low of 1.20 to a high of 13.13. The Software industry median Return-on-Tangible-Equity is 8.82. Hmcomm's value of 6.65% is 24.6% below this industry median. Based on the distribution chart, Hmcomm ranks #1609 out of 2476 companies in the Software industry, which is below the industry midpoint. Overall, Hmcomm has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Hmcomm's Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, Hmcomm ranks #1609 out of 2476 companies for Return-on-Tangible-Equity. This places Hmcomm in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.82. Hmcomm's value of 6.65% is 24.6% below this benchmark. Historically, Hmcomm's own Return-on-Tangible-Equity has ranged from 1.20 to 13.13 over the past decade. While the company's 10-year median is 5.72 vs. the industry median of 8.82, Hmcomm 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 8.82, based on 2,476 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. Hmcomm's current Return-on-Tangible-Equity of 6.65% is 24.6% 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 Hmcomm 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. Hmcomm's current Return-on-Tangible-Equity is 6.65%, which is 16% above median its own 10-year median of 5.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hmcomm stock overvalued right now?
Hmcomm (TSE:265A) has a current Return-on-Tangible-Equity of 6.65%. The current Return-on-Tangible-Equity is 6.65%, which is 16% above median its 10-year median of 5.72 and 24.6% below the Software industry median of 8.82. Hmcomm's overall GF Score™ is 21/100 with 3 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 Hmcomm (TSE:265A), the current Return-on-Tangible-Equity is 6.65% 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.
Hmcomm Inc is engaged in provision of products using voice recognition processing, abnormal sound detection, and natural language analysis processing, etc.
21GF Score
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