Showa System EngineeringTSE:4752 -2.39%71 Return-on-Tangible-Equity is 11.87% as of Mar. 2026, which is 8% above its 10-year median of 10.95. GuruFocus rates TSE:4752 with a GF Score™ of 71/100 and a GF Value™ of 円1,592.48 (Fairly Valued). Among 2,476 Software companies, Showa System Engineering ranks better than 58.16% 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. Showa System Engineering's annualized net income for the quarter that ended in Mar. 2026 was 円678 Mil. Showa System Engineering's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円5,715 Mil. Therefore, Showa System Engineering's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.87%.
The historical rank and industry rank for Showa System Engineering's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4752'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.68 Med: 10.95 Max: 14.33
Current: 13.79
During the past 13 years, Showa System Engineering's highest Return-on-Tangible-Equity was 14.33%. The lowest was 9.68%. And the median was 10.95%.
TSE:4752's Return-on-Tangible-Equity is ranked better than 58.16% of 2476
companies
in the Software industry
Industry Median: 8.82
vs TSE:4752: 13.79
Showa System Engineering (TSE:4752) 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.
Showa System Engineering Return-on-Tangible-Equity Related Terms
Showa System Engineering Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Showa System Engineering'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.
Showa System Engineering Return-on-Tangible-Equity Chart
TSE:4752 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Showa System Engineering'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.
Showa System Engineering Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Showa System Engineering's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Showa System Engineering'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 (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 11.87% mean?
Showa System Engineering (TSE:4752) has a Return-on-Tangible-Equity of 11.87% 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 Showa System Engineering and its competitors. This is near median its historical median of 10.95. Over the past decade, Showa System Engineering's Return-on-Tangible-Equity has ranged from 9.68 to 14.33. According to the industry distribution chart, Showa System Engineering ranks #1036 out of 2476 companies in the Software industry, placing it in the top 41.8%.
Is Showa System Engineering's Return-on-Tangible-Equity too high?
Showa System Engineering's current Return-on-Tangible-Equity of 11.87% is near median its 10-year median of 10.95. Over the past 10 years, this metric has ranged from a low of 9.68 to a high of 14.33. The Software industry median Return-on-Tangible-Equity is 8.82. Showa System Engineering's value of 11.87% is 34.6% above this industry median. Based on the distribution chart, Showa System Engineering ranks #1036 out of 2476 companies in the Software industry, which is above the industry midpoint. Overall, Showa System Engineering has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Showa System Engineering's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Showa System Engineering ranks #1036 out of 2476 companies for Return-on-Tangible-Equity. This puts Showa System Engineering in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.82. Showa System Engineering's value of 11.87% is 34.6% above this benchmark. Historically, Showa System Engineering's own Return-on-Tangible-Equity has ranged from 9.68 to 14.33 over the past decade. While the company's 10-year median is 10.95 vs. the industry median of 8.82, Showa System Engineering 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 8.82, based on 2,476 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. Showa System Engineering's current Return-on-Tangible-Equity of 11.87% is 34.6% 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 Showa System Engineering and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Showa System Engineering's current Return-on-Tangible-Equity is 11.87%, which is near median its own 10-year median of 10.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Showa System Engineering stock overvalued right now?
Based on GuruFocus' analysis, Showa System Engineering (TSE:4752) is currently considered Fairly Valued. The stock's GF Value™ is 円1,592.48, compared to a current price of 円1,513.00 — trading 5% below its estimated fair value. The current Return-on-Tangible-Equity is 11.87%, which is near median its 10-year median of 10.95 and 34.6% above the Software industry median of 8.82. Showa System Engineering's overall GF Score™ is 71/100. 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 Showa System Engineering (TSE:4752), the current Return-on-Tangible-Equity is 11.87% 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 Showa System Engineering (TSE:4752) Overvalued in 2026?
Based on GuruFocus' analysis, Showa System Engineering stock appears to be undervalued.
The current stock price of 円1,513.00 is trading 5% below its estimated GF Value™ of 円1,592.48.
GuruFocus considers Showa System Engineering to be Fairly Valued.
Key valuation signals for TSE:4752:
Return-on-Tangible-Equity: 11.87% (near median its 10-year median of 10.95)
GF Value™: 円1,592.48 vs. price of 円1,513.00 (5% below fair value)
Industry Position: 34.6% above the Software median (#1036 of 2476)
No single metric tells the full story. See the TSE:4752 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Showa System Engineering Corp is engaged in development of information systems, system integration, consulting, software design, and development related to corporate computer systems. The company also provides business support services to various industries, such as administrative services for financial institutions, medical checkup reservations, and scanning services.
71GF Score
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