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System Research CoTSE:3771 +0.73%84 Return-on-Tangible-Equity is 23.95% as of Mar. 2026, which is 20% above its 10-year median of 19.89. GuruFocus rates TSE:3771 with a GF Score™ of 84/100 and a GF Value™ of 円2,040.97 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,482 Software companies, System Research Co ranks better than 68.29% 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. System Research Co's annualized net income for the quarter that ended in Mar. 2026 was 円2,979 Mil. System Research Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円12,436 Mil. Therefore, System Research Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 23.95%.
The historical rank and industry rank for System Research Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:3771'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.79 Med: 19.89 Max: 21.76
Current: 21.54
During the past 13 years, System Research Co's highest Return-on-Tangible-Equity was 21.76%. The lowest was 15.79%. And the median was 19.89%.
TSE:3771's Return-on-Tangible-Equity is ranked better than 68.29% of 2482
companies
in the Software industry
Industry Median: 8.845
vs TSE:3771: 21.54
System Research Co (TSE:3771) 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.
System Research Co Return-on-Tangible-Equity Related Terms
System Research Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for System Research 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.
System Research Co Return-on-Tangible-Equity Chart
TSE:3771 vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, System Research 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.
System Research Co Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, System Research Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where System Research 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 23.95% mean?
System Research Co (TSE:3771) has a Return-on-Tangible-Equity of 23.95% 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 System Research Co and its competitors. This is 20% above median its historical median of 19.89. Over the past decade, System Research Co's Return-on-Tangible-Equity has ranged from 15.79 to 21.76. According to the industry distribution chart, System Research Co ranks #787 out of 2482 companies in the Software industry, placing it in the top 31.7%.
Is System Research Co's Return-on-Tangible-Equity too high?
System Research Co's current Return-on-Tangible-Equity of 23.95% is 20% above median its 10-year median of 19.89. Over the past 10 years, this metric has ranged from a low of 15.79 to a high of 21.76. The Software industry median Return-on-Tangible-Equity is 8.85. System Research Co's value of 23.95% is 170.8% above this industry median. Based on the distribution chart, System Research Co ranks #787 out of 2482 companies in the Software industry, which is above the industry midpoint. Overall, System Research Co has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does System Research Co's Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, System Research Co ranks #787 out of 2482 companies for Return-on-Tangible-Equity. This puts System Research Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.85. System Research Co's value of 23.95% is 170.8% above this benchmark. Historically, System Research Co's own Return-on-Tangible-Equity has ranged from 15.79 to 21.76 over the past decade. While the company's 10-year median is 19.89 vs. the industry median of 8.85, System Research 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 8.85, based on 2,482 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. System Research Co's current Return-on-Tangible-Equity of 23.95% is 170.8% 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 System Research 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. System Research Co's current Return-on-Tangible-Equity is 23.95%, which is 20% above median its own 10-year median of 19.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is System Research Co stock overvalued right now?
Based on GuruFocus' analysis, System Research Co (TSE:3771) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,040.97, compared to a current price of 円1,799.00 — trading 11.9% below its estimated fair value. The current Return-on-Tangible-Equity is 23.95%, which is 20% above median its 10-year median of 19.89 and 170.8% above the Software industry median of 8.85. System Research Co's overall GF Score™ is 84/100 with 1 warning sign 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 System Research Co (TSE:3771), the current Return-on-Tangible-Equity is 23.95% 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 System Research Co (TSE:3771) Overvalued in 2026?
Based on GuruFocus' analysis, System Research Co stock appears to be undervalued.
The current stock price of 円1,799.00 is trading 11.9% below its estimated GF Value™ of 円2,040.97.
GuruFocus considers System Research Co to be Modestly Undervalued.
Key valuation signals for TSE:3771:
Return-on-Tangible-Equity: 23.95% (20% above median its 10-year median of 19.89)
GF Value™: 円2,040.97 vs. price of 円1,799.00 (11.9% below fair value)
Industry Position: 170.8% above the Software median (#787 of 2482)
No single metric tells the full story. See the TSE:3771 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
System Research Co Ltd is a software application service provider in Japan. The business of the company includes SI service operations, outsourcing business, web-related business, software development work, software product business, and product sales.
84GF 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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