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eXmotion CoTSE:4394 -3.20%79 Return-on-Tangible-Equity is 9.85% as of Feb. 2026, which is 14% above its 10-year median of 8.62. GuruFocus rates TSE:4394 with a GF Score™ of 79/100 and a GF Value™ of 円379.85 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,480 Software companies, eXmotion Co ranks better than 50.93% 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. eXmotion Co's annualized net income for the quarter that ended in Feb. 2026 was 円152 Mil. eXmotion Co's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円1,543 Mil. Therefore, eXmotion Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 9.85%.
The historical rank and industry rank for eXmotion Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4394'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.45 Med: 8.62 Max: 27.1
Current: 9.32
During the past 10 years, eXmotion Co's highest Return-on-Tangible-Equity was 27.10%. The lowest was 0.45%. And the median was 8.62%.
TSE:4394's Return-on-Tangible-Equity is ranked better than 50.93% of 2480
companies
in the Software industry
Industry Median: 8.845
vs TSE:4394: 9.32
eXmotion Co (TSE:4394) 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.
eXmotion Co Return-on-Tangible-Equity Related Terms
eXmotion Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for eXmotion 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:4394 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, eXmotion 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.
eXmotion Co Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, eXmotion Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where eXmotion 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 (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 9.85% mean?
eXmotion Co (TSE:4394) has a Return-on-Tangible-Equity of 9.85% 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 eXmotion Co and its competitors. This is 14% above median its historical median of 8.62. Over the past decade, eXmotion Co's Return-on-Tangible-Equity has ranged from 0.45 to 27.10. According to the industry distribution chart, eXmotion Co ranks #1217 out of 2480 companies in the Software industry, placing it in the top 49.1%.
Is eXmotion Co's Return-on-Tangible-Equity too high?
eXmotion Co's current Return-on-Tangible-Equity of 9.85% is 14% above median its 10-year median of 8.62. Over the past 10 years, this metric has ranged from a low of 0.45 to a high of 27.10. The Software industry median Return-on-Tangible-Equity is 8.85. eXmotion Co's value of 9.85% is 11.4% above this industry median. Based on the distribution chart, eXmotion Co ranks #1217 out of 2480 companies in the Software industry, which is above the industry midpoint. Overall, eXmotion Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does eXmotion Co's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, eXmotion Co ranks #1217 out of 2480 companies for Return-on-Tangible-Equity. This puts eXmotion Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.85. eXmotion Co's value of 9.85% is 11.4% above this benchmark. Historically, eXmotion Co's own Return-on-Tangible-Equity has ranged from 0.45 to 27.10 over the past decade. While the company's 10-year median is 8.62 vs. the industry median of 8.85, eXmotion 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 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. eXmotion Co's current Return-on-Tangible-Equity of 9.85% is 11.4% 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 eXmotion Co 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. eXmotion Co's current Return-on-Tangible-Equity is 9.85%, which is 14% above median its own 10-year median of 8.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is eXmotion Co stock overvalued right now?
Based on GuruFocus' analysis, eXmotion Co (TSE:4394) is currently considered Significantly Overvalued. The stock's GF Value™ is 円379.85, compared to a current price of 円545.00 — trading 43.5% above its estimated fair value. The current Return-on-Tangible-Equity is 9.85%, which is 14% above median its 10-year median of 8.62 and 11.4% above the Software industry median of 8.85. eXmotion Co's overall GF Score™ is 79/100 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 eXmotion Co (TSE:4394), the current Return-on-Tangible-Equity is 9.85% 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 eXmotion Co (TSE:4394) Overvalued in 2026?
Based on GuruFocus' analysis, eXmotion Co stock appears to be overvalued.
The current stock price of 円545.00 is trading 43.5% above its estimated GF Value™ of 円379.85.
GuruFocus considers eXmotion Co to be Significantly Overvalued.
Key valuation signals for TSE:4394:
Return-on-Tangible-Equity: 9.85% (14% above median its 10-year median of 8.62)
GF Value™: 円379.85 vs. price of 円545.00 (43.5% above fair value)
Industry Position: 11.4% above the Software median (#1217 of 2480)
No single metric tells the full story. See the TSE:4394 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
eXmotion Co Ltd provides technical consulting and education services for systems and software. The company offers Consulting business, Education and human resource development business, Tool business and others.
79GF Score
Get the complete analysis for TSE:4394
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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