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GMO Financial GateTSE:4051 -1.34%94 Return-on-Tangible-Equity is 39.93% as of Mar. 2026, which is 172% above its 10-year median of 14.68. GuruFocus rates TSE:4051 with a GF Score™ of 94/100 and a GF Value™ of 円7,492.87 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,480 Software companies, GMO Financial Gate ranks better than 80.24% 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. GMO Financial Gate's annualized net income for the quarter that ended in Mar. 2026 was 円1,621 Mil. GMO Financial Gate's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円4,058 Mil. Therefore, GMO Financial Gate's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 39.93%.
The historical rank and industry rank for GMO Financial Gate's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4051'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.01 Med: 14.68 Max: 39.9
Current: 39.9
During the past 8 years, GMO Financial Gate's highest Return-on-Tangible-Equity was 39.90%. The lowest was 5.01%. And the median was 14.68%.
TSE:4051's Return-on-Tangible-Equity is ranked better than 80.24% of 2480
companies
in the Software industry
Industry Median: 8.845
vs TSE:4051: 39.90
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.
GMO Financial Gate Return-on-Tangible-Equity Related Terms
GMO Financial Gate Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for GMO Financial Gate'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:4051 vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, GMO Financial Gate'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.
GMO Financial Gate Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, GMO Financial Gate's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where GMO Financial Gate'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 four times the quarterly (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 39.93% mean?
GMO Financial Gate (TSE:4051) has a Return-on-Tangible-Equity of 39.93% 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 GMO Financial Gate and its competitors. This is 172% above median its historical median of 14.68. Over the past decade, GMO Financial Gate's Return-on-Tangible-Equity has ranged from 5.01 to 39.90. According to the industry distribution chart, GMO Financial Gate ranks #490 out of 2480 companies in the Software industry, placing it in the top 19.8%.
Is GMO Financial Gate's Return-on-Tangible-Equity too high?
GMO Financial Gate's current Return-on-Tangible-Equity of 39.93% is 172% above median its 10-year median of 14.68. Over the past 10 years, this metric has ranged from a low of 5.01 to a high of 39.90. The Software industry median Return-on-Tangible-Equity is 8.85. GMO Financial Gate's value of 39.93% is 351.4% above this industry median. Based on the distribution chart, GMO Financial Gate ranks #490 out of 2480 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, GMO Financial Gate has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does GMO Financial Gate's Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, GMO Financial Gate ranks #490 out of 2480 companies for Return-on-Tangible-Equity. This places GMO Financial Gate in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.85. GMO Financial Gate's value of 39.93% is 351.4% above this benchmark. Historically, GMO Financial Gate's own Return-on-Tangible-Equity has ranged from 5.01 to 39.90 over the past decade. While the company's 10-year median is 14.68 vs. the industry median of 8.85, GMO Financial Gate 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 2,480 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. GMO Financial Gate's current Return-on-Tangible-Equity of 39.93% is 351.4% 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 GMO Financial Gate 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. GMO Financial Gate's current Return-on-Tangible-Equity is 39.93%, which is 172% above median its own 10-year median of 14.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GMO Financial Gate stock overvalued right now?
Based on GuruFocus' analysis, GMO Financial Gate (TSE:4051) is currently considered Modestly Undervalued. The stock's GF Value™ is 円7,492.87, compared to a current price of 円6,640.00 — trading 11.4% below its estimated fair value. The current Return-on-Tangible-Equity is 39.93%, which is 172% above median its 10-year median of 14.68 and 351.4% above the Software industry median of 8.85. GMO Financial Gate's overall GF Score™ is 94/100 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 GMO Financial Gate (TSE:4051), the current Return-on-Tangible-Equity is 39.93% 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 GMO Financial Gate (TSE:4051) Overvalued in 2026?
Based on GuruFocus' analysis, GMO Financial Gate stock appears to be undervalued.
The current stock price of 円6,640.00 is trading 11.4% below its estimated GF Value™ of 円7,492.87.
GuruFocus considers GMO Financial Gate to be Modestly Undervalued.
Key valuation signals for TSE:4051:
Return-on-Tangible-Equity: 39.93% (172% above median its 10-year median of 14.68)
GF Value™: 円7,492.87 vs. price of 円6,640.00 (11.4% below fair value)
Industry Position: 351.4% above the Software median (#490 of 2480)
No single metric tells the full story. See the TSE:4051 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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