WITZ (TSE:4440) Return-on-Tangible-Equity: 19.64% (As of Feb. 2026) — 54% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:4440 WITZ Corp TSE:4440
87 GF Score
Price 円1,145.00
GF Value 円1,696.92
Valuation Significantly Undervalued
! 1 Warning Sign
View Full Analysis

What is WITZ Return-on-Tangible-Equity?

WITZ TSE:4440 -2.97% 87 Return-on-Tangible-Equity is 19.64% as of Feb. 2026, which is 54% above its 10-year median of 12.72. GuruFocus rates TSE:4440 with a GF Score™ of 87/100 and a GF Value™ of 円1,696.92 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,477 Software companies, WITZ ranks better than 65.56% 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. WITZ's annualized net income for the quarter that ended in Feb. 2026 was 円500 Mil. WITZ's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円2,546 Mil. Therefore, WITZ's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 19.64%.

The historical rank and industry rank for WITZ's Return-on-Tangible-Equity or its related term are showing as below:

TSE:4440' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.17   Med: 12.72   Max: 47.44
Current: 18.18

During the past 9 years, WITZ's highest Return-on-Tangible-Equity was 47.44%. The lowest was 6.17%. And the median was 12.72%.

TSE:4440's Return-on-Tangible-Equity is ranked better than
65.56% of 2477 companies
in the Software industry
Industry Median: 8.83 vs TSE:4440: 18.18

WITZ  (TSE:4440) 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.


WITZ Return-on-Tangible-Equity Related Terms


WITZ Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for WITZ'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.

WITZ Return-on-Tangible-Equity Chart

WITZ Annual Data
Trend Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only 10.43 8.30 6.17 12.72 18.52

WITZ Semi-Annual Data
Aug17 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.95 17.68 20.23 16.75 19.64

TSE:4440 vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison

For the Software - Application subindustry, WITZ'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.


WITZ Return-on-Tangible-Equity vs Software Industry

For the Software industry and Technology sector, WITZ's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where WITZ's Return-on-Tangible-Equity falls into.


TSE:4440
87GF Score
WITZ Corp TSE:4440
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

WITZ Return-on-Tangible-Equity Calculation

WITZ's annualized Return-on-Tangible-Equity for the fiscal year that ended in Aug. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Aug. 2025 )  (A: Aug. 2024 )(A: Aug. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Aug. 2025 )  (A: Aug. 2024 )(A: Aug. 2025 )
=424.218/( (2142.684+2437.938 )/ 2 )
=424.218/2290.311
=18.52 %

WITZ's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Feb. 2026 )  (Q: Aug. 2025 )(Q: Feb. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Feb. 2026 )  (Q: Aug. 2025 )(Q: Feb. 2026 )
=499.98/( (2437.938+2654.681)/ 2 )
=499.98/2546.3095
=19.64 %

* 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 19.64% mean?
WITZ (TSE:4440) has a Return-on-Tangible-Equity of 19.64% 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 WITZ and its competitors. This is 54% above median its historical median of 12.72. Over the past decade, WITZ's Return-on-Tangible-Equity has ranged from 6.17 to 47.44. According to the industry distribution chart, WITZ ranks #853 out of 2477 companies in the Software industry, placing it in the top 34.4%.
Is WITZ's Return-on-Tangible-Equity too high?
WITZ's current Return-on-Tangible-Equity of 19.64% is 54% above median its 10-year median of 12.72. Over the past 10 years, this metric has ranged from a low of 6.17 to a high of 47.44. The Software industry median Return-on-Tangible-Equity is 8.83. WITZ's value of 19.64% is 122.4% above this industry median. Based on the distribution chart, WITZ ranks #853 out of 2477 companies in the Software industry, which is above the industry midpoint. Overall, WITZ has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does WITZ's Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, WITZ ranks #853 out of 2477 companies for Return-on-Tangible-Equity. This puts WITZ in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.83. WITZ's value of 19.64% is 122.4% above this benchmark. Historically, WITZ's own Return-on-Tangible-Equity has ranged from 6.17 to 47.44 over the past decade. While the company's 10-year median is 12.72 vs. the industry median of 8.83, WITZ 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. WITZ's current Return-on-Tangible-Equity of 19.64% is 122.4% 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 WITZ 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. WITZ's current Return-on-Tangible-Equity is 19.64%, which is 54% above median its own 10-year median of 12.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is WITZ stock overvalued right now?
Based on GuruFocus' analysis, WITZ (TSE:4440) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,696.92, compared to a current price of 円1,145.00 — trading 32.5% below its estimated fair value. The current Return-on-Tangible-Equity is 19.64%, which is 54% above median its 10-year median of 12.72 and 122.4% above the Software industry median of 8.83. WITZ's overall GF Score™ is 87/100 with 1 warning sign 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 WITZ (TSE:4440), the current Return-on-Tangible-Equity is 19.64% 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 WITZ (TSE:4440) Overvalued in 2026?

Based on GuruFocus' analysis, WITZ stock appears to be undervalued. The current stock price of 円1,145.00 is trading 32.5% below its estimated GF Value™ of 円1,696.92. GuruFocus considers WITZ to be Significantly Undervalued.

Key valuation signals for TSE:4440:

  • Return-on-Tangible-Equity: 19.64% (54% above median its 10-year median of 12.72)
  • GF Value™: 円1,696.92 vs. price of 円1,145.00 (32.5% below fair value)
  • GF Score™: 87/100 with 1 warning sign
  • Industry Position: 122.4% above the Software median (#853 of 2477)

No single metric tells the full story. See the TSE:4440 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


WITZ Business Description

Address 3-3-21 Sakae, Naka-ku, Nagoya, JPN, 460-0008
WITZ Corp is engaged in the development and provision of software and sensing solutions. The group operates through four reportable segments: Software Development Business, Service Design Business, Sensing Business, and Industry Business. The Software Development segment focuses on control software and simulation technologies for automobiles and industrial products. The Service Design segment offers products and services built on embedded system development expertise. The Sensing segment is involved in the manufacture, sale, and maintenance of X-ray transmission and CT devices. The Industry segment, newly added after the acquisition of Tesco, handles the manufacturing, sale, and maintenance of X-ray and CT equipment.
87GF Score

Get the complete analysis for TSE:4440

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,145.00
Price
円1,696.92
GF Value