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HITO-Communications HoldingsTSE:4433 +0.22%63 Return-on-Tangible-Equity is 3.52% as of Feb. 2026, which is 85% below its 10-year median of 22.87. GuruFocus rates TSE:4433 with a GF Score™ of 63/100 and a GF Value™ of 円1,065.98 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,009 Business Services companies, HITO-Communications Holdings ranks worse than 67.69% 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. HITO-Communications Holdings's annualized net income for the quarter that ended in Feb. 2026 was 円360 Mil. HITO-Communications Holdings's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円10,234 Mil. Therefore, HITO-Communications Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 3.52%.
The historical rank and industry rank for HITO-Communications Holdings's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4433'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.47 Med: 22.87 Max: 35.83
Current: 4.62
During the past 13 years, HITO-Communications Holdings's highest Return-on-Tangible-Equity was 35.83%. The lowest was -0.47%. And the median was 22.87%.
TSE:4433's Return-on-Tangible-Equity is ranked worse than 67.69% of 1009
companies
in the Business Services industry
Industry Median: 10.61
vs TSE:4433: 4.62
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.
HITO-Communications Holdings Return-on-Tangible-Equity Related Terms
HITO-Communications Holdings Return-on-Tangible-Equity Historical Data
* 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:4433 vs KFY, RHI, TNET: Return-on-Tangible-Equity Comparison
For the Staffing & Employment Services subindustry, HITO-Communications Holdings'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.
HITO-Communications Holdings Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, HITO-Communications Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where HITO-Communications Holdings'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 3.52% mean?
HITO-Communications Holdings (TSE:4433) has a Return-on-Tangible-Equity of 3.52% 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 HITO-Communications Holdings and its competitors. This is 85% below median its historical median of 22.87. According to the industry distribution chart, HITO-Communications Holdings ranks #683 out of 1009 companies in the Business Services industry, placing it in the top 67.7%.
Is HITO-Communications Holdings' Return-on-Tangible-Equity too high?
HITO-Communications Holdings' current Return-on-Tangible-Equity of 3.52% is 85% below median its 10-year median of 22.87. The Business Services industry median Return-on-Tangible-Equity is 10.61. HITO-Communications Holdings' value of 3.52% is 66.8% below this industry median. Based on the distribution chart, HITO-Communications Holdings ranks #683 out of 1009 companies in the Business Services industry, which is below the industry midpoint. Overall, HITO-Communications Holdings has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HITO-Communications Holdings' Return-on-Tangible-Equity compare to KFY and RHI?
According to the Business Services industry distribution chart, HITO-Communications Holdings ranks #683 out of 1009 companies for Return-on-Tangible-Equity. This places HITO-Communications Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.61. HITO-Communications Holdings' value of 3.52% is 66.8% below this benchmark. While the company's 10-year median is 22.87 vs. the industry median of 10.61, HITO-Communications Holdings has consistently been below 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.61, based on 1,009 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. HITO-Communications Holdings's current Return-on-Tangible-Equity of 3.52% is 66.8% below 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 HITO-Communications Holdings and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HITO-Communications Holdings's current Return-on-Tangible-Equity is 3.52%, which is 85% below median its own 10-year median of 22.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HITO-Communications Holdings stock overvalued right now?
Based on GuruFocus' analysis, HITO-Communications Holdings (TSE:4433) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,065.98, compared to a current price of 円898.00 — trading 15.8% below its estimated fair value. The current Return-on-Tangible-Equity is 3.52%, which is 85% below median its 10-year median of 22.87 and 66.8% below the Business Services industry median of 10.61. HITO-Communications Holdings' overall GF Score™ is 63/100 with 4 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 HITO-Communications Holdings (TSE:4433), the current Return-on-Tangible-Equity is 3.52% 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 HITO-Communications Holdings (TSE:4433) Overvalued in 2026?
Based on GuruFocus' analysis, HITO-Communications Holdings stock appears to be undervalued.
The current stock price of 円898.00 is trading 15.8% below its estimated GF Value™ of 円1,065.98.
GuruFocus considers HITO-Communications Holdings to be Modestly Undervalued.
Key valuation signals for TSE:4433:
Return-on-Tangible-Equity: 3.52% (85% below median its 10-year median of 22.87)
GF Value™: 円1,065.98 vs. price of 円898.00 (15.8% below fair value)
Industry Position: 66.8% below the Business Services median (#683 of 1009)
No single metric tells the full story. See the TSE:4433 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HITO-Communications Holdings Inc is engaged in business outsourcing industry placement and pay the general worker dispatching undertaking. Its services include Sales Outsourcing, Sales Promotion, Staffing services, and Tourism Staffing services among others.
63GF Score
Get the complete analysis for TSE:4433
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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