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Encourage Technologies CoTSE:3682 -0.16%76 Return-on-Tangible-Equity is 7.01% as of Mar. 2026, which is 2% above its 10-year median of 6.87. GuruFocus rates TSE:3682 with a GF Score™ of 76/100 and a GF Value™ of 円641.90 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,480 Software companies, Encourage Technologies Co ranks worse than 54.44% 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. Encourage Technologies Co's annualized net income for the quarter that ended in Mar. 2026 was 円232 Mil. Encourage Technologies Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円3,313 Mil. Therefore, Encourage Technologies Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.01%.
The historical rank and industry rank for Encourage Technologies Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:3682'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.5 Med: 6.87 Max: 13
Current: 6.42
During the past 13 years, Encourage Technologies Co's highest Return-on-Tangible-Equity was 13.00%. The lowest was 3.50%. And the median was 6.87%.
TSE:3682's Return-on-Tangible-Equity is ranked worse than 54.44% of 2480
companies
in the Software industry
Industry Median: 8.845
vs TSE:3682: 6.42
Encourage Technologies Co (TSE:3682) 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.
Encourage Technologies Co Return-on-Tangible-Equity Related Terms
Encourage Technologies Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Encourage Technologies 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.
Encourage Technologies Co Return-on-Tangible-Equity Chart
TSE:3682 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Encourage Technologies 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.
Encourage Technologies Co Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Encourage Technologies Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Encourage Technologies 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 two times the semi-annual (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 7.01% mean?
Encourage Technologies Co (TSE:3682) has a Return-on-Tangible-Equity of 7.01% 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 Encourage Technologies Co and its competitors. This is near median its historical median of 6.87. Over the past decade, Encourage Technologies Co's Return-on-Tangible-Equity has ranged from 3.50 to 13.00. According to the industry distribution chart, Encourage Technologies Co ranks #1350 out of 2480 companies in the Software industry, placing it in the top 54.4%.
Is Encourage Technologies Co's Return-on-Tangible-Equity too high?
Encourage Technologies Co's current Return-on-Tangible-Equity of 7.01% is near median its 10-year median of 6.87. Over the past 10 years, this metric has ranged from a low of 3.50 to a high of 13.00. The Software industry median Return-on-Tangible-Equity is 8.85. Encourage Technologies Co's value of 7.01% is 20.7% below this industry median. Based on the distribution chart, Encourage Technologies Co ranks #1350 out of 2480 companies in the Software industry, which is below the industry midpoint. Overall, Encourage Technologies Co has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Encourage Technologies Co's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Encourage Technologies Co ranks #1350 out of 2480 companies for Return-on-Tangible-Equity. This places Encourage Technologies Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.85. Encourage Technologies Co's value of 7.01% is 20.7% below this benchmark. Historically, Encourage Technologies Co's own Return-on-Tangible-Equity has ranged from 3.50 to 13.00 over the past decade. While the company's 10-year median is 6.87 vs. the industry median of 8.85, Encourage Technologies 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. Encourage Technologies Co's current Return-on-Tangible-Equity of 7.01% is 20.7% 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 Encourage Technologies 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. Encourage Technologies Co's current Return-on-Tangible-Equity is 7.01%, which is near median its own 10-year median of 6.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Encourage Technologies Co stock overvalued right now?
Based on GuruFocus' analysis, Encourage Technologies Co (TSE:3682) is currently considered Fairly Valued. The stock's GF Value™ is 円641.90, compared to a current price of 円624.00 — trading 2.8% below its estimated fair value. The current Return-on-Tangible-Equity is 7.01%, which is near median its 10-year median of 6.87 and 20.7% below the Software industry median of 8.85. Encourage Technologies Co's overall GF Score™ is 76/100 with 4 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 Encourage Technologies Co (TSE:3682), the current Return-on-Tangible-Equity is 7.01% 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 Encourage Technologies Co (TSE:3682) Overvalued in 2026?
Based on GuruFocus' analysis, Encourage Technologies Co stock appears to be undervalued.
The current stock price of 円624.00 is trading 2.8% below its estimated GF Value™ of 円641.90.
GuruFocus considers Encourage Technologies Co to be Fairly Valued.
Key valuation signals for TSE:3682:
Return-on-Tangible-Equity: 7.01% (near median its 10-year median of 6.87)
GF Value™: 円641.90 vs. price of 円624.00 (2.8% below fair value)
Industry Position: 20.7% below the Software median (#1350 of 2480)
No single metric tells the full story. See the TSE:3682 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Encourage Technologies Co Ltd develops software that monitors and audits user activity in IT systems. The company also provides maintenance support after the installation of the software as well consulting services.
76GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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