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Nihon Knowledge CoTSE:5252 -0.13%78 Return-on-Tangible-Equity is 18.88% as of Mar. 2026, which is 36% above its 10-year median of 13.92. GuruFocus rates TSE:5252 with a GF Score™ of 78/100 and a GF Value™ of 円545.09 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,477 Software companies, Nihon Knowledge Co ranks worse than 52.04% 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. Nihon Knowledge Co's annualized net income for the quarter that ended in Mar. 2026 was 円210 Mil. Nihon Knowledge Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円1,113 Mil. Therefore, Nihon Knowledge Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.88%.
The historical rank and industry rank for Nihon Knowledge Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:5252'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.52 Med: 13.92 Max: 20.84
Current: 7.73
During the past 6 years, Nihon Knowledge Co's highest Return-on-Tangible-Equity was 20.84%. The lowest was 7.52%. And the median was 13.92%.
TSE:5252's Return-on-Tangible-Equity is ranked worse than 52.04% of 2477
companies
in the Software industry
Industry Median: 8.83
vs TSE:5252: 7.73
Nihon Knowledge Co (TSE:5252) 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.
Nihon Knowledge Co Return-on-Tangible-Equity Related Terms
Nihon Knowledge Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nihon Knowledge Co'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.
Nihon Knowledge Co Return-on-Tangible-Equity Chart
TSE:5252 vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Nihon Knowledge Co'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.
Nihon Knowledge Co Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Nihon Knowledge Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nihon Knowledge Co'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 18.88% mean?
Nihon Knowledge Co (TSE:5252) has a Return-on-Tangible-Equity of 18.88% 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 Nihon Knowledge Co and its competitors. This is 36% above median its historical median of 13.92. Over the past decade, Nihon Knowledge Co's Return-on-Tangible-Equity has ranged from 7.52 to 20.84. According to the industry distribution chart, Nihon Knowledge Co ranks #1289 out of 2477 companies in the Software industry, placing it in the top 52%.
Is Nihon Knowledge Co's Return-on-Tangible-Equity too high?
Nihon Knowledge Co's current Return-on-Tangible-Equity of 18.88% is 36% above median its 10-year median of 13.92. Over the past 10 years, this metric has ranged from a low of 7.52 to a high of 20.84. The Software industry median Return-on-Tangible-Equity is 8.83. Nihon Knowledge Co's value of 18.88% is 113.8% above this industry median. Based on the distribution chart, Nihon Knowledge Co ranks #1289 out of 2477 companies in the Software industry, which is below the industry midpoint. Overall, Nihon Knowledge Co has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Knowledge Co's Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, Nihon Knowledge Co ranks #1289 out of 2477 companies for Return-on-Tangible-Equity. This places Nihon Knowledge Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.83. Nihon Knowledge Co's value of 18.88% is 113.8% above this benchmark. Historically, Nihon Knowledge Co's own Return-on-Tangible-Equity has ranged from 7.52 to 20.84 over the past decade. While the company's 10-year median is 13.92 vs. the industry median of 8.83, Nihon Knowledge Co 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. Nihon Knowledge Co's current Return-on-Tangible-Equity of 18.88% is 113.8% 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 Nihon Knowledge Co 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. Nihon Knowledge Co's current Return-on-Tangible-Equity is 18.88%, which is 36% above median its own 10-year median of 13.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Knowledge Co stock overvalued right now?
Based on GuruFocus' analysis, Nihon Knowledge Co (TSE:5252) is currently considered Significantly Overvalued. The stock's GF Value™ is 円545.09, compared to a current price of 円765.00 — trading 40.3% above its estimated fair value. The current Return-on-Tangible-Equity is 18.88%, which is 36% above median its 10-year median of 13.92 and 113.8% above the Software industry median of 8.83. Nihon Knowledge Co's overall GF Score™ is 78/100 with 4 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 Nihon Knowledge Co (TSE:5252), the current Return-on-Tangible-Equity is 18.88% 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 Nihon Knowledge Co (TSE:5252) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Knowledge Co stock appears to be overvalued.
The current stock price of 円765.00 is trading 40.3% above its estimated GF Value™ of 円545.09.
GuruFocus considers Nihon Knowledge Co to be Significantly Overvalued.
Key valuation signals for TSE:5252:
Return-on-Tangible-Equity: 18.88% (36% above median its 10-year median of 13.92)
GF Value™: 円545.09 vs. price of 円765.00 (40.3% above fair value)
Industry Position: 113.8% above the Software median (#1289 of 2477)
No single metric tells the full story. See the TSE:5252 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Knowledge Co Ltd is a comprehensive ICT service company that provides quality and test technology, development, and security products with a thorough user orientation. The company's services include verification services, Development services, and consultation services. The verification services include Resolving software verification issues through a track record of numerous projects and accumulation of know-how. The development services include management systems for steel wholesalers and processing industries and others.
78GF Score
Get the complete analysis for TSE:5252
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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