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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. Vario Secure's annualized net income for the quarter that ended in Feb. 2026 was 円-217 Mil. Vario Secure's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円820 Mil. Therefore, Vario Secure's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was -26.45%.
The historical rank and industry rank for Vario Secure's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4494'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.84 Med: 22.18 Max: 99.83
Current: 14.84
During the past 9 years, Vario Secure's highest Return-on-Tangible-Equity was 99.83%. The lowest was 14.84%. And the median was 22.18%.
TSE:4494's Return-on-Tangible-Equity is ranked better than 60.08% of 2480
companies
in the Software industry
Industry Median: 8.845
vs TSE:4494: 14.84
Vario Secure (TSE:4494) 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.
Vario Secure Return-on-Tangible-Equity Related Terms
Vario Secure Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Vario Secure'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:4494 vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Vario Secure'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.
Vario Secure Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Vario Secure's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Vario Secure'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 -26.45% mean?
Vario Secure (TSE:4494) has a Return-on-Tangible-Equity of -26.45% 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 Vario Secure and its competitors. Over the past decade, Vario Secure's Return-on-Tangible-Equity has ranged from 14.84 to 99.83. According to the industry distribution chart, Vario Secure ranks #990 out of 2480 companies in the Software industry, placing it in the top 39.9%.
Is Vario Secure's Return-on-Tangible-Equity too high?
Vario Secure's current Return-on-Tangible-Equity is -26.45%. Over the past 10 years, this metric has ranged from a low of 14.84 to a high of 99.83. Based on the distribution chart, Vario Secure ranks #990 out of 2480 companies in the Software industry, which is above the industry midpoint. Overall, Vario Secure has a GF Score™ of 51/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vario Secure's Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, Vario Secure ranks #990 out of 2480 companies for Return-on-Tangible-Equity. This puts Vario Secure in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.85. Historically, Vario Secure's own Return-on-Tangible-Equity has ranged from 14.84 to 99.83 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 Vario Secure 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. Vario Secure's current Return-on-Tangible-Equity is -26.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vario Secure stock overvalued right now?
Based on GuruFocus' analysis, Vario Secure (TSE:4494) is currently considered Modestly Undervalued. The stock's GF Value™ is 円760.08, compared to a current price of 円680.00 — trading 10.5% below its estimated fair value. The current Return-on-Tangible-Equity is -26.45%. Vario Secure's overall GF Score™ is 51/100 with 5 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 Vario Secure (TSE:4494), the current Return-on-Tangible-Equity is -26.45% 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 Vario Secure (TSE:4494) Overvalued in 2026?
Based on GuruFocus' analysis, Vario Secure stock appears to be undervalued.
The current stock price of 円680.00 is trading 10.5% below its estimated GF Value™ of 円760.08.
GuruFocus considers Vario Secure to be Modestly Undervalued.
Key valuation signals for TSE:4494:
Return-on-Tangible-Equity: -26.45%
GF Value™: 円760.08 vs. price of 円680.00 (10.5% below fair value)
No single metric tells the full story. See the TSE:4494 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vario Secure Inc is engaged in providing internet security services that protect the network environment of enterprises from various threats arising from internet usage, by utilizing its in-house developed security instruments and operating system. The company provides one-stop security services, from installation and implementation to operation, monitoring, and support, for small and medium-sized enterprises that struggle to spare dedicated personnel for IT issues, which are becoming increasingly sophisticated and complicated daily. The Company operates in a single segment, the Internet security services business.
51GF Score
Get the complete analysis for TSE:4494
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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