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SignpostTSE:3996 61 Return-on-Tangible-Equity is 11.26% as of Feb. 2026, which is 75% above its 10-year median of 6.42. GuruFocus rates TSE:3996 with a GF Score™ of 61/100 and a GF Value™ of 円487.00 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,484 Software companies, Signpost ranks worse than 59.54% 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. Signpost's annualized net income for the quarter that ended in Feb. 2026 was 円206 Mil. Signpost's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円1,828 Mil. Therefore, Signpost's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 11.26%.
The historical rank and industry rank for Signpost's Return-on-Tangible-Equity or its related term are showing as below:
TSE:3996'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -76.09 Med: 6.42 Max: 33.24
Current: 4.19
During the past 11 years, Signpost's highest Return-on-Tangible-Equity was 33.24%. The lowest was -76.09%. And the median was 6.42%.
TSE:3996's Return-on-Tangible-Equity is ranked worse than 59.54% of 2484
companies
in the Software industry
Industry Median: 8.91
vs TSE:3996: 4.19
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.
Signpost Return-on-Tangible-Equity Related Terms
Signpost Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Signpost'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:3996 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Signpost'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.
Signpost Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Signpost's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Signpost'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 (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 11.26% mean?
Signpost (TSE:3996) has a Return-on-Tangible-Equity of 11.26% 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 Signpost and its competitors. This is 75% above median its historical median of 6.42. According to the industry distribution chart, Signpost ranks #1479 out of 2484 companies in the Software industry, placing it in the top 59.5%.
Is Signpost's Return-on-Tangible-Equity too high?
Signpost's current Return-on-Tangible-Equity of 11.26% is 75% above median its 10-year median of 6.42. The Software industry median Return-on-Tangible-Equity is 8.91. Signpost's value of 11.26% is 26.4% above this industry median. Based on the distribution chart, Signpost ranks #1479 out of 2484 companies in the Software industry, which is below the industry midpoint. Overall, Signpost has a GF Score™ of 61/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Signpost's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Signpost ranks #1479 out of 2484 companies for Return-on-Tangible-Equity. This places Signpost in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.91. Signpost's value of 11.26% is 26.4% above this benchmark. While the company's 10-year median is 6.42 vs. the industry median of 8.91, Signpost 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 8.91, based on 2,484 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. Signpost's current Return-on-Tangible-Equity of 11.26% is 26.4% 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 Signpost and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Signpost's current Return-on-Tangible-Equity is 11.26%, which is 75% above median its own 10-year median of 6.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Signpost stock overvalued right now?
Based on GuruFocus' analysis, Signpost (TSE:3996) is currently considered Significantly Undervalued. The stock's GF Value™ is 円487.00, compared to a current price of 円199.00 — trading 59.1% below its estimated fair value. The current Return-on-Tangible-Equity is 11.26%, which is 75% above median its 10-year median of 6.42 and 26.4% above the Software industry median of 8.91. Signpost's overall GF Score™ is 61/100 with 2 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 Signpost (TSE:3996), the current Return-on-Tangible-Equity is 11.26% 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 Signpost (TSE:3996) Overvalued in 2026?
Based on GuruFocus' analysis, Signpost stock appears to be undervalued.
The current stock price of 円199.00 is trading 59.1% below its estimated GF Value™ of 円487.00.
GuruFocus considers Signpost to be Significantly Undervalued.
Key valuation signals for TSE:3996:
Return-on-Tangible-Equity: 11.26% (75% above median its 10-year median of 6.42)
GF Value™: 円487.00 vs. price of 円199.00 (59.1% below fair value)
Industry Position: 26.4% above the Software median (#1479 of 2484)
No single metric tells the full story. See the TSE:3996 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Signpost Corp is a Japan-based company engaged in the provision of information technology consulting services. The company operates through three segments namely Consulting business, DX Regional co-creation business and Innovation business.
61GF Score
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