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System DTSE:3804 80 Return-on-Tangible-Equity is 20.34% as of Apr. 2026, which is 15% below its 10-year median of 23.93. GuruFocus rates TSE:3804 with a GF Score™ of 80/100 and a GF Value™ of 円552.15 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,481 Software companies, System D ranks better than 60.82% 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 D's annualized net income for the quarter that ended in Apr. 2026 was 円820 Mil. System D's average shareholder tangible equity for the quarter that ended in Apr. 2026 was 円4,034 Mil. Therefore, System D's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 20.34%.
The historical rank and industry rank for System D's Return-on-Tangible-Equity or its related term are showing as below:
TSE:3804'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.17 Med: 23.93 Max: 35.42
Current: 15.17
During the past 13 years, System D's highest Return-on-Tangible-Equity was 35.42%. The lowest was 15.17%. And the median was 23.93%.
TSE:3804's Return-on-Tangible-Equity is ranked better than 60.82% of 2481
companies
in the Software industry
Industry Median: 8.86
vs TSE:3804: 15.17
System D (TSE:3804) 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 D Return-on-Tangible-Equity Related Terms
System D Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for System D'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:3804 vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, System D'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 D Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, System D's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where System D'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 (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 20.34% mean?
System D (TSE:3804) has a Return-on-Tangible-Equity of 20.34% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on System D and its competitors. This is 15% below median its historical median of 23.93. Over the past decade, System D's Return-on-Tangible-Equity has ranged from 15.17 to 35.42. According to the industry distribution chart, System D ranks #972 out of 2481 companies in the Software industry, placing it in the top 39.2%.
Is System D's Return-on-Tangible-Equity too high?
System D's current Return-on-Tangible-Equity of 20.34% is 15% below median its 10-year median of 23.93. Over the past 10 years, this metric has ranged from a low of 15.17 to a high of 35.42. The Software industry median Return-on-Tangible-Equity is 8.86. System D's value of 20.34% is 129.6% above this industry median. Based on the distribution chart, System D ranks #972 out of 2481 companies in the Software industry, which is above the industry midpoint. Overall, System D has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does System D's Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, System D ranks #972 out of 2481 companies for Return-on-Tangible-Equity. This puts System D in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.86. System D's value of 20.34% is 129.6% above this benchmark. Historically, System D's own Return-on-Tangible-Equity has ranged from 15.17 to 35.42 over the past decade. While the company's 10-year median is 23.93 vs. the industry median of 8.86, System D 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 8.86, based on 2,481 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 D's current Return-on-Tangible-Equity of 20.34% is 129.6% 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 D and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. System D's current Return-on-Tangible-Equity is 20.34%, which is 15% below median its own 10-year median of 23.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is System D stock overvalued right now?
Based on GuruFocus' analysis, System D (TSE:3804) is currently considered Modestly Undervalued. The stock's GF Value™ is 円552.15, compared to a current price of 円435.00 — trading 21.2% below its estimated fair value. The current Return-on-Tangible-Equity is 20.34%, which is 15% below median its 10-year median of 23.93 and 129.6% above the Software industry median of 8.86. System D's overall GF Score™ is 80/100 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 System D (TSE:3804), the current Return-on-Tangible-Equity is 20.34% as of Apr. 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 D (TSE:3804) Overvalued in 2026?
Based on GuruFocus' analysis, System D stock appears to be undervalued.
The current stock price of 円435.00 is trading 21.2% below its estimated GF Value™ of 円552.15.
GuruFocus considers System D to be Modestly Undervalued.
Key valuation signals for TSE:3804:
Return-on-Tangible-Equity: 20.34% (15% below median its 10-year median of 23.93)
GF Value™: 円552.15 vs. price of 円435.00 (21.2% below fair value)
Industry Position: 129.6% above the Software median (#972 of 2481)
No single metric tells the full story. See the TSE:3804 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
System D Inc creates industry-specialized package software. The software development serves the schools, fitness clubs, distributors and other institutions. Its products and services include: Campus Plan, School Engine, PPP, Public Property Management System, Common Financial Accounting System, Smart Hello/Hello EX, Smart Hello Ticket/Hello Fun, Regulations Management System, and Contract creation and management system.
80GF Score
Get the complete analysis for TSE:3804
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