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Alpha SystemsTSE:4719 -0.45%76 Return-on-Tangible-Equity is 8.56% as of Mar. 2026, which is 21% above its 10-year median of 7.10. GuruFocus rates TSE:4719 with a GF Score™ of 76/100 and a GF Value™ of 円3,670.64 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,480 Software companies, Alpha Systems ranks worse than 50.6% 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. Alpha Systems's annualized net income for the quarter that ended in Mar. 2026 was 円3,839 Mil. Alpha Systems's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円44,862 Mil. Therefore, Alpha Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.56%.
The historical rank and industry rank for Alpha Systems's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4719'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.33 Med: 7.1 Max: 8.5
Current: 8.5
During the past 13 years, Alpha Systems's highest Return-on-Tangible-Equity was 8.50%. The lowest was 5.33%. And the median was 7.10%.
TSE:4719's Return-on-Tangible-Equity is ranked worse than 50.6% of 2480
companies
in the Software industry
Industry Median: 8.845
vs TSE:4719: 8.50
Alpha Systems (TSE:4719) 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.
Alpha Systems Return-on-Tangible-Equity Related Terms
Alpha Systems Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Alpha Systems'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:4719 vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Alpha Systems'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.
Alpha Systems Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Alpha Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Alpha Systems'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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 8.56% mean?
Alpha Systems (TSE:4719) has a Return-on-Tangible-Equity of 8.56% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alpha Systems and its competitors. This is 21% above median its historical median of 7.10. Over the past decade, Alpha Systems' Return-on-Tangible-Equity has ranged from 5.33 to 8.50. According to the industry distribution chart, Alpha Systems ranks #1255 out of 2480 companies in the Software industry, placing it in the top 50.6%.
Is Alpha Systems' Return-on-Tangible-Equity too high?
Alpha Systems' current Return-on-Tangible-Equity of 8.56% is 21% above median its 10-year median of 7.10. Over the past 10 years, this metric has ranged from a low of 5.33 to a high of 8.50. The Software industry median Return-on-Tangible-Equity is 8.85. Alpha Systems' value of 8.56% is 3.2% below this industry median. Based on the distribution chart, Alpha Systems ranks #1255 out of 2480 companies in the Software industry, which is below the industry midpoint. Overall, Alpha Systems has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alpha Systems' Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, Alpha Systems ranks #1255 out of 2480 companies for Return-on-Tangible-Equity. This places Alpha Systems in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.85. Alpha Systems' value of 8.56% is 3.2% below this benchmark. Historically, Alpha Systems' own Return-on-Tangible-Equity has ranged from 5.33 to 8.50 over the past decade. While the company's 10-year median is 7.10 vs. the industry median of 8.85, Alpha Systems 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 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. Alpha Systems's current Return-on-Tangible-Equity of 8.56% is 3.2% 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 Alpha Systems 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. Alpha Systems's current Return-on-Tangible-Equity is 8.56%, which is 21% above median its own 10-year median of 7.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alpha Systems stock overvalued right now?
Based on GuruFocus' analysis, Alpha Systems (TSE:4719) is currently considered Modestly Undervalued. The stock's GF Value™ is 円3,670.64, compared to a current price of 円3,315.00 — trading 9.7% below its estimated fair value. The current Return-on-Tangible-Equity is 8.56%, which is 21% above median its 10-year median of 7.10 and 3.2% below the Software industry median of 8.85. Alpha Systems' overall GF Score™ is 76/100 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 Alpha Systems (TSE:4719), the current Return-on-Tangible-Equity is 8.56% as of Mar. 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 Alpha Systems (TSE:4719) Overvalued in 2026?
Based on GuruFocus' analysis, Alpha Systems stock appears to be undervalued.
The current stock price of 円3,315.00 is trading 9.7% below its estimated GF Value™ of 円3,670.64.
GuruFocus considers Alpha Systems to be Modestly Undervalued.
Key valuation signals for TSE:4719:
Return-on-Tangible-Equity: 8.56% (21% above median its 10-year median of 7.10)
GF Value™: 円3,670.64 vs. price of 円3,315.00 (9.7% below fair value)
Industry Position: 3.2% below the Software median (#1255 of 2480)
No single metric tells the full story. See the TSE:4719 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alpha Systems Inc engages in software development for telecommunications systems. The company develops software for backbone communication systems, such as node systems, mobile network systems, and network management systems; open systems, including systems for management of production and distribution, and Intranets for corporate information management; and embedded systems to control electronic devices, including home appliances, office automation equipment, industrial machines, and in-vehicle systems. It also provides system integration, system operation and maintenance, and product sales services.
76GF Score
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