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IPS Holdings CoTSE:4335 +0.09%70 Return-on-Tangible-Equity is 18.59% as of Mar. 2026, which is 23% above its 10-year median of 15.16. GuruFocus rates TSE:4335 with a GF Score™ of 70/100 and a GF Value™ of 円1,361.08 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,485 Software companies, IPS Holdings Co ranks better than 59.24% 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. IPS Holdings Co's annualized net income for the quarter that ended in Mar. 2026 was 円274 Mil. IPS Holdings Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円1,475 Mil. Therefore, IPS Holdings Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.59%.
The historical rank and industry rank for IPS Holdings Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4335'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.38 Med: 15.16 Max: 18.42
Current: 15.14
During the past 13 years, IPS Holdings Co's highest Return-on-Tangible-Equity was 18.42%. The lowest was 3.38%. And the median was 15.16%.
TSE:4335's Return-on-Tangible-Equity is ranked better than 59.24% of 2485
companies
in the Software industry
Industry Median: 9.9
vs TSE:4335: 15.14
IPS Holdings Co (TSE:4335) 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.
IPS Holdings Co Return-on-Tangible-Equity Related Terms
IPS Holdings Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for IPS Holdings 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.
TSE:4335 vs IBM, ACN, CTSH: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, IPS Holdings 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.
IPS Holdings Co Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, IPS Holdings Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where IPS Holdings 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 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 18.59% mean?
IPS Holdings Co (TSE:4335) has a Return-on-Tangible-Equity of 18.59% 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 IPS Holdings Co and its competitors. This is 23% above median its historical median of 15.16. Over the past decade, IPS Holdings Co's Return-on-Tangible-Equity has ranged from 3.38 to 18.42. According to the industry distribution chart, IPS Holdings Co ranks #1013 out of 2485 companies in the Software industry, placing it in the top 40.8%.
Is IPS Holdings Co's Return-on-Tangible-Equity too high?
IPS Holdings Co's current Return-on-Tangible-Equity of 18.59% is 23% above median its 10-year median of 15.16. Over the past 10 years, this metric has ranged from a low of 3.38 to a high of 18.42. The Software industry median Return-on-Tangible-Equity is 9.90. IPS Holdings Co's value of 18.59% is 87.8% above this industry median. Based on the distribution chart, IPS Holdings Co ranks #1013 out of 2485 companies in the Software industry, which is above the industry midpoint. Overall, IPS Holdings Co has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does IPS Holdings Co's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, IPS Holdings Co ranks #1013 out of 2485 companies for Return-on-Tangible-Equity. This puts IPS Holdings Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 9.90. IPS Holdings Co's value of 18.59% is 87.8% above this benchmark. Historically, IPS Holdings Co's own Return-on-Tangible-Equity has ranged from 3.38 to 18.42 over the past decade. While the company's 10-year median is 15.16 vs. the industry median of 9.90, IPS Holdings 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 9.90, based on 2,485 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. IPS Holdings Co's current Return-on-Tangible-Equity of 18.59% is 87.8% 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 IPS Holdings Co and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPS Holdings Co's current Return-on-Tangible-Equity is 18.59%, which is 23% above median its own 10-year median of 15.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IPS Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, IPS Holdings Co (TSE:4335) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,361.08, compared to a current price of 円1,094.00 — trading 19.6% below its estimated fair value. The current Return-on-Tangible-Equity is 18.59%, which is 23% above median its 10-year median of 15.16 and 87.8% above the Software industry median of 9.90. IPS Holdings Co's overall GF Score™ is 70/100 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 IPS Holdings Co (TSE:4335), the current Return-on-Tangible-Equity is 18.59% 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 IPS Holdings Co (TSE:4335) Overvalued in 2026?
Based on GuruFocus' analysis, IPS Holdings Co stock appears to be undervalued.
The current stock price of 円1,094.00 is trading 19.6% below its estimated GF Value™ of 円1,361.08.
GuruFocus considers IPS Holdings Co to be Modestly Undervalued.
Key valuation signals for TSE:4335:
Return-on-Tangible-Equity: 18.59% (23% above median its 10-year median of 15.16)
GF Value™: 円1,361.08 vs. price of 円1,094.00 (19.6% below fair value)
Industry Position: 87.8% above the Software median (#1013 of 2485)
No single metric tells the full story. See the TSE:4335 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IPS Holdings Co Ltd is engaged in SAP implementation services, development of its products, and maintenance. The products of the company include easyone, easyone lite, data science, and EDI. The services offered by the company include data maintenance and operational reforms.
70GF Score
Get the complete analysis for TSE:4335
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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