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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. Power Solutions's annualized net income for the quarter that ended in Dec. 2025 was 円0 Mil. Power Solutions's average shareholder tangible equity for the quarter that ended in Dec. 2025 was 円3,160 Mil. Therefore, Power Solutions's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 0.00%.
The historical rank and industry rank for Power Solutions's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4450'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.31 Med: 16.28 Max: 35.56
Current: 6.21
During the past 9 years, Power Solutions's highest Return-on-Tangible-Equity was 35.56%. The lowest was 4.31%. And the median was 16.28%.
TSE:4450's Return-on-Tangible-Equity is ranked worse than 54.96% of 2480
companies
in the Software industry
Industry Median: 8.845
vs TSE:4450: 6.21
Power Solutions (TSE:4450) 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.
Power Solutions Return-on-Tangible-Equity Related Terms
Power Solutions Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Power Solutions'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:4450 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Power Solutions'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.
Power Solutions Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Power Solutions's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Power Solutions'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 (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 0.00% mean?
Power Solutions (TSE:4450) has a Return-on-Tangible-Equity of 0.00% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Power Solutions and its competitors. Over the past decade, Power Solutions' Return-on-Tangible-Equity has ranged from 4.31 to 35.56. According to the industry distribution chart, Power Solutions ranks #1363 out of 2480 companies in the Software industry, placing it in the top 55%.
Is Power Solutions' Return-on-Tangible-Equity too high?
Power Solutions' current Return-on-Tangible-Equity is 0.00%. Over the past 10 years, this metric has ranged from a low of 4.31 to a high of 35.56. Based on the distribution chart, Power Solutions ranks #1363 out of 2480 companies in the Software industry, which is below the industry midpoint. Overall, Power Solutions has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Power Solutions' Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Power Solutions ranks #1363 out of 2480 companies for Return-on-Tangible-Equity. This places Power Solutions in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.85. Historically, Power Solutions' own Return-on-Tangible-Equity has ranged from 4.31 to 35.56 over the past decade. 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. 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 Power Solutions 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. Power Solutions's current Return-on-Tangible-Equity is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Power Solutions stock overvalued right now?
Based on GuruFocus' analysis, Power Solutions (TSE:4450) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,770.45, compared to a current price of 円2,148.00 — trading 21.3% above its estimated fair value. The current Return-on-Tangible-Equity is 0.00%. Power Solutions' overall GF Score™ is 90/100 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 Power Solutions (TSE:4450), the current Return-on-Tangible-Equity is 0.00% as of Dec. 2025. 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 Power Solutions (TSE:4450) Overvalued in 2026?
Based on GuruFocus' analysis, Power Solutions stock appears to be overvalued.
The current stock price of 円2,148.00 is trading 21.3% above its estimated GF Value™ of 円1,770.45.
GuruFocus considers Power Solutions to be Modestly Overvalued.
Key valuation signals for TSE:4450:
Return-on-Tangible-Equity: 0.00%
GF Value™: 円1,770.45 vs. price of 円2,148.00 (21.3% above fair value)
No single metric tells the full story. See the TSE:4450 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Power Solutions Ltd specializes in corporate information technology activities. It is mainly engaged in the development, operation, and maintenance of business consulting systems and the outsourcing of business for asset management companies and other financial institutions.
90GF Score
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