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Nippon Ichi SoftwareTSE:3851 61 Return-on-Tangible-Equity is -0.80% as of Mar. 2026. GuruFocus rates TSE:3851 with a GF Score™ of 61/100 and a GF Value™ of 円661.02 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 490 Interactive Media companies, Nippon Ichi Software ranks worse than 64.49% 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. Nippon Ichi Software's annualized net income for the quarter that ended in Mar. 2026 was 円-62 Mil. Nippon Ichi Software's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円7,755 Mil. Therefore, Nippon Ichi Software's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -0.80%.
The historical rank and industry rank for Nippon Ichi Software's Return-on-Tangible-Equity or its related term are showing as below:
TSE:3851'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -3.29 Med: 8.61 Max: 23.69
Current: -3.29
During the past 13 years, Nippon Ichi Software's highest Return-on-Tangible-Equity was 23.69%. The lowest was -3.29%. And the median was 8.61%.
TSE:3851's Return-on-Tangible-Equity is ranked worse than 64.49% of 490
companies
in the Interactive Media industry
Industry Median: 5.225
vs TSE:3851: -3.29
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.
Nippon Ichi Software Return-on-Tangible-Equity Related Terms
Nippon Ichi Software Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nippon Ichi Software'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:3851 vs NTES, EA, TTWO: Return-on-Tangible-Equity Comparison
For the Electronic Gaming & Multimedia subindustry, Nippon Ichi Software'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.
Nippon Ichi Software Return-on-Tangible-Equity vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Nippon Ichi Software's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nippon Ichi Software'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 -0.80% mean?
Nippon Ichi Software (TSE:3851) has a Return-on-Tangible-Equity of -0.80% 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 Nippon Ichi Software and its competitors. According to the industry distribution chart, Nippon Ichi Software ranks #316 out of 490 companies in the Interactive Media industry, placing it in the top 64.5%.
Is Nippon Ichi Software's Return-on-Tangible-Equity too high?
Nippon Ichi Software's current Return-on-Tangible-Equity is -0.80%. Based on the distribution chart, Nippon Ichi Software ranks #316 out of 490 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Nippon Ichi Software has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Ichi Software's Return-on-Tangible-Equity compare to NTES and EA?
According to the Interactive Media industry distribution chart, Nippon Ichi Software ranks #316 out of 490 companies for Return-on-Tangible-Equity. This places Nippon Ichi Software 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 Nippon Ichi Software 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. Nippon Ichi Software's current Return-on-Tangible-Equity is -0.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Ichi Software stock overvalued right now?
Based on GuruFocus' analysis, Nippon Ichi Software (TSE:3851) is currently considered Significantly Overvalued. The stock's GF Value™ is 円661.02, compared to a current price of 円900.00 — trading 36.2% above its estimated fair value. The current Return-on-Tangible-Equity is -0.80%. Nippon Ichi Software's overall GF Score™ is 61/100 with 7 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 Nippon Ichi Software (TSE:3851), the current Return-on-Tangible-Equity is -0.80% 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 Nippon Ichi Software (TSE:3851) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Ichi Software stock appears to be overvalued.
The current stock price of 円900.00 is trading 36.2% above its estimated GF Value™ of 円661.02.
GuruFocus considers Nippon Ichi Software to be Significantly Overvalued.
Key valuation signals for TSE:3851:
Return-on-Tangible-Equity: -0.80%
GF Value™: 円661.02 vs. price of 円900.00 (36.2% above fair value)
No single metric tells the full story. See the TSE:3851 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Ichi Software Inc is engaged in developing, manufacturing, and selling computer software in Japan and other Asian countries, North America, and Europe. It develops software for consumer game machines, mobile game machines, mobile phones, smartphones, arcades, and produces content of various genres. Its segments include Entertainment Business and Student Dormitories & Other Businesses.
61GF Score
Get the complete analysis for TSE:3851
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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