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NETSE:441A 20 Return-on-Tangible-Equity is 28.72% as of Jan. 2026, which is 9% below its 10-year median of 31.69. GuruFocus rates TSE:441A with a GF Score™ of 20/100. Among 2,477 Software companies, NE ranks better than 73.31% 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. NE's annualized net income for the quarter that ended in Jan. 2026 was 円1,154 Mil. NE's average shareholder tangible equity for the quarter that ended in Jan. 2026 was 円4,017 Mil. Therefore, NE's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2026 was 28.72%.
The historical rank and industry rank for NE's Return-on-Tangible-Equity or its related term are showing as below:
TSE:441A'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 26.1 Med: 31.69 Max: 39.44
Current: 26.49
During the past 3 years, NE's highest Return-on-Tangible-Equity was 39.44%. The lowest was 26.10%. And the median was 31.69%.
TSE:441A's Return-on-Tangible-Equity is ranked better than 73.31% of 2477
companies
in the Software industry
Industry Median: 8.83
vs TSE:441A: 26.49
NE (TSE:441A) 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.
NE Return-on-Tangible-Equity Related Terms
NE Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for NE'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:441A vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, NE'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.
NE Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, NE's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where NE'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 (Jan. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 28.72% mean?
NE (TSE:441A) has a Return-on-Tangible-Equity of 28.72% as of Jan. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on NE and its competitors. This is near median its historical median of 31.69. Over the past decade, NE's Return-on-Tangible-Equity has ranged from 26.10 to 39.44. According to the industry distribution chart, NE ranks #661 out of 2477 companies in the Software industry, placing it in the top 26.7%.
Is NE's Return-on-Tangible-Equity too high?
NE's current Return-on-Tangible-Equity of 28.72% is near median its 10-year median of 31.69. Over the past 10 years, this metric has ranged from a low of 26.10 to a high of 39.44. The Software industry median Return-on-Tangible-Equity is 8.83. NE's value of 28.72% is 225.3% above this industry median. Based on the distribution chart, NE ranks #661 out of 2477 companies in the Software industry, which is above the industry midpoint. Overall, NE has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does NE's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, NE ranks #661 out of 2477 companies for Return-on-Tangible-Equity. This puts NE in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.83. NE's value of 28.72% is 225.3% above this benchmark. Historically, NE's own Return-on-Tangible-Equity has ranged from 26.10 to 39.44 over the past decade. While the company's 10-year median is 31.69 vs. the industry median of 8.83, NE 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 8.83, based on 2,477 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. NE's current Return-on-Tangible-Equity of 28.72% is 225.3% 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 NE and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NE's current Return-on-Tangible-Equity is 28.72%, which is near median its own 10-year median of 31.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NE stock overvalued right now?
NE (TSE:441A) has a current Return-on-Tangible-Equity of 28.72%. The current Return-on-Tangible-Equity is 28.72%, which is near median its 10-year median of 31.69 and 225.3% above the Software industry median of 8.83. NE's overall GF Score™ is 20/100. 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 NE (TSE:441A), the current Return-on-Tangible-Equity is 28.72% as of Jan. 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.
NE Inc is engaged in Operating Next Engine a SaaS-based e-commerce support platform, providing e-commerce consulting, providing regional revitalization services, including support for furusato nozei (hometown tax donation) programs.
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