Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
AR Advanced TechnologyTSE:5578 -3.13%58 Return-on-Tangible-Equity is 48.82% as of Feb. 2026, which is 69% above its 10-year median of 28.81. GuruFocus rates TSE:5578 with a GF Score™ of 58/100 and a GF Value™ of 円1,041.79 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,477 Software companies, AR Advanced Technology ranks better than 84.46% 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. AR Advanced Technology's annualized net income for the quarter that ended in Feb. 2026 was 円645 Mil. AR Advanced Technology's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円1,321 Mil. Therefore, AR Advanced Technology's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 48.82%.
The historical rank and industry rank for AR Advanced Technology's Return-on-Tangible-Equity or its related term are showing as below:
TSE:5578'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.6 Med: 28.81 Max: 58.86
Current: 58.86
During the past 5 years, AR Advanced Technology's highest Return-on-Tangible-Equity was 58.86%. The lowest was 15.60%. And the median was 28.81%.
TSE:5578's Return-on-Tangible-Equity is ranked better than 84.46% of 2477
companies
in the Software industry
Industry Median: 8.83
vs TSE:5578: 58.86
AR Advanced Technology (TSE:5578) 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.
AR Advanced Technology Return-on-Tangible-Equity Related Terms
AR Advanced Technology Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for AR Advanced Technology'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.
AR Advanced Technology Return-on-Tangible-Equity Chart
TSE:5578 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, AR Advanced Technology'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.
AR Advanced Technology Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, AR Advanced Technology's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where AR Advanced Technology'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 48.82% mean?
AR Advanced Technology (TSE:5578) has a Return-on-Tangible-Equity of 48.82% 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 AR Advanced Technology and its competitors. This is 69% above median its historical median of 28.81. Over the past decade, AR Advanced Technology's Return-on-Tangible-Equity has ranged from 15.60 to 58.86. According to the industry distribution chart, AR Advanced Technology ranks #385 out of 2477 companies in the Software industry, placing it in the top 15.5%.
Is AR Advanced Technology's Return-on-Tangible-Equity too high?
AR Advanced Technology's current Return-on-Tangible-Equity of 48.82% is 69% above median its 10-year median of 28.81. Over the past 10 years, this metric has ranged from a low of 15.60 to a high of 58.86. The Software industry median Return-on-Tangible-Equity is 8.83. AR Advanced Technology's value of 48.82% is 452.9% above this industry median. Based on the distribution chart, AR Advanced Technology ranks #385 out of 2477 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, AR Advanced Technology has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AR Advanced Technology's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, AR Advanced Technology ranks #385 out of 2477 companies for Return-on-Tangible-Equity. This places AR Advanced Technology in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.83. AR Advanced Technology's value of 48.82% is 452.9% above this benchmark. Historically, AR Advanced Technology's own Return-on-Tangible-Equity has ranged from 15.60 to 58.86 over the past decade. While the company's 10-year median is 28.81 vs. the industry median of 8.83, AR Advanced Technology 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. AR Advanced Technology's current Return-on-Tangible-Equity of 48.82% is 452.9% 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 AR Advanced Technology 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. AR Advanced Technology's current Return-on-Tangible-Equity is 48.82%, which is 69% above median its own 10-year median of 28.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AR Advanced Technology stock overvalued right now?
Based on GuruFocus' analysis, AR Advanced Technology (TSE:5578) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,041.79, compared to a current price of 円773.00 — trading 25.8% below its estimated fair value. The current Return-on-Tangible-Equity is 48.82%, which is 69% above median its 10-year median of 28.81 and 452.9% above the Software industry median of 8.83. AR Advanced Technology's overall GF Score™ is 58/100 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 AR Advanced Technology (TSE:5578), the current Return-on-Tangible-Equity is 48.82% 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 AR Advanced Technology (TSE:5578) Overvalued in 2026?
Based on GuruFocus' analysis, AR Advanced Technology stock appears to be undervalued.
The current stock price of 円773.00 is trading 25.8% below its estimated GF Value™ of 円1,041.79.
GuruFocus considers AR Advanced Technology to be Modestly Undervalued.
Key valuation signals for TSE:5578:
Return-on-Tangible-Equity: 48.82% (69% above median its 10-year median of 28.81)
GF Value™: 円1,041.79 vs. price of 円773.00 (25.8% below fair value)
Industry Position: 452.9% above the Software median (#385 of 2477)
No single metric tells the full story. See the TSE:5578 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AR Advanced Technology Inc is engaged in the DX solution business utilizing cloud technology, data analysis, and AI. It provides a comprehensive service that goes beyond simple system introduction. Its products and services include Loogue faq, an AI chatbot that is specialized in employee inquiries; Zidoma data which may be useful to reduce fileserver operating costs; and Mieta a cloud contact center analysis management service.
58GF Score
Get the complete analysis for TSE:5578
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:5578 has been successfully added to your 
