CAVE Interactive Co (TSE:3760) Return-on-Tangible-Equity: -41.60% (As of Feb. 2026)

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TSE:3760 CAVE Interactive Co Ltd TSE:3760
46 GF Score
Price 円699.00
GF Value 円1,141.67
Valuation Possible Value Trap
! 6 Warning Signs
View Full Analysis

What is CAVE Interactive Co Return-on-Tangible-Equity?

CAVE Interactive Co TSE:3760 -4.12% 46 Return-on-Tangible-Equity is -41.60% as of Feb. 2026. GuruFocus rates TSE:3760 with a GF Score™ of 46/100 and a GF Value™ of 円1,141.67 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 490 Interactive Media companies, CAVE Interactive Co ranks worse than 60.2% 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. CAVE Interactive Co's annualized net income for the quarter that ended in Feb. 2026 was 円-1,201 Mil. CAVE Interactive Co's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円2,886 Mil. Therefore, CAVE Interactive Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was -41.60%.

The historical rank and industry rank for CAVE Interactive Co's Return-on-Tangible-Equity or its related term are showing as below:

TSE:3760' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -141.66   Med: -26.42   Max: 134.57
Current: 0.67

During the past 13 years, CAVE Interactive Co's highest Return-on-Tangible-Equity was 134.57%. The lowest was -141.66%. And the median was -26.42%.

TSE:3760's Return-on-Tangible-Equity is ranked worse than
60.2% of 490 companies
in the Interactive Media industry
Industry Median: 5.225 vs TSE:3760: 0.67

CAVE Interactive Co  (TSE:3760) 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.


CAVE Interactive Co Return-on-Tangible-Equity Related Terms


CAVE Interactive Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for CAVE Interactive 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.

CAVE Interactive Co Return-on-Tangible-Equity Chart

CAVE Interactive Co Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only -107.46 134.57 47.49 6.84 -76.13

CAVE Interactive Co Quarterly Data
Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Nov24 May25 Aug25 Nov25 Feb26 May26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 -31.66 0.00 -41.60 77.61

TSE:3760 vs NTES, EA, TTWO: Return-on-Tangible-Equity Comparison

For the Electronic Gaming & Multimedia subindustry, CAVE Interactive 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.


CAVE Interactive Co Return-on-Tangible-Equity vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, CAVE Interactive Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where CAVE Interactive Co's Return-on-Tangible-Equity falls into.


TSE:3760
46GF Score
CAVE Interactive Co Ltd TSE:3760
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

CAVE Interactive Co Return-on-Tangible-Equity Calculation

CAVE Interactive Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in May. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: May. 2026 )  (A: May. 2025 )(A: May. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: May. 2026 )  (A: May. 2025 )(A: May. 2026 )
=-2799.201/( (3859.663+3493.771 )/ 2 )
=-2799.201/3676.717
=-76.13 %

CAVE Interactive Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Feb. 2026 )  (Q: Nov. 2025 )(Q: Feb. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Feb. 2026 )  (Q: Nov. 2025 )(Q: Feb. 2026 )
=-1200.892/( (3005.935+2766.973)/ 2 )
=-1200.892/2886.454
=-41.60 %

* 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 (Feb. 2026) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of -41.60% mean?
CAVE Interactive Co (TSE:3760) has a Return-on-Tangible-Equity of -41.60% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on CAVE Interactive Co and its competitors. According to the industry distribution chart, CAVE Interactive Co ranks #295 out of 490 companies in the Interactive Media industry, placing it in the top 60.2%.
Is CAVE Interactive Co's Return-on-Tangible-Equity too high?
CAVE Interactive Co's current Return-on-Tangible-Equity is -41.60%. Based on the distribution chart, CAVE Interactive Co ranks #295 out of 490 companies in the Interactive Media industry, which is below the industry midpoint. Overall, CAVE Interactive Co has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does CAVE Interactive Co's Return-on-Tangible-Equity compare to NTES and EA?
According to the Interactive Media industry distribution chart, CAVE Interactive Co ranks #295 out of 490 companies for Return-on-Tangible-Equity. This places CAVE Interactive Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.23. 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 an Interactive Media company?
The median Return-on-Tangible-Equity among Interactive Media companies is 5.23, based on 490 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. 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 CAVE Interactive Co and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Equity is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CAVE Interactive Co's current Return-on-Tangible-Equity is -41.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CAVE Interactive Co stock overvalued right now?
Based on GuruFocus' analysis, CAVE Interactive Co (TSE:3760) is currently considered Possible Value Trap. The stock's GF Value™ is 円1,141.67, compared to a current price of 円699.00 — trading 38.8% below its estimated fair value. The current Return-on-Tangible-Equity is -41.60%. CAVE Interactive Co's overall GF Score™ is 46/100 with 6 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 CAVE Interactive Co (TSE:3760), the current Return-on-Tangible-Equity is -41.60% as of Feb. 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 CAVE Interactive Co (TSE:3760) Overvalued in 2026?

Based on GuruFocus' analysis, CAVE Interactive Co stock appears to be undervalued. The current stock price of 円699.00 is trading 38.8% below its estimated GF Value™ of 円1,141.67. GuruFocus considers CAVE Interactive Co to be Possible Value Trap.

Key valuation signals for TSE:3760:

  • Return-on-Tangible-Equity: -41.60%
  • GF Value™: 円1,141.67 vs. price of 円699.00 (38.8% below fair value)
  • GF Score™: 46/100 with 6 warning signs

No single metric tells the full story. See the TSE:3760 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


CAVE Interactive Co Business Description

Address Nakameguro GT Tower, 2-1-1 Kamimeguro, Meguro-ku, 9th Floor, Tokyo, JPN, 153-0051
CAVE Interactive Co Ltd is a game creator. It is engaged in business such as mobile entertainment, content media and entertainment marketing, business planning, production management. It provides mobile media entertainment content. It develops music, social media applications, and online games, arcade video games such as deathsmiles, espagaluda, dodonpachi resurrection and shin megami.
46GF Score

Get the complete analysis for TSE:3760

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円699.00
Price
円1,141.67
GF Value