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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. Chi-Technology Co's annualized net income for the quarter that ended in Feb. 2026 was 円143 Mil. Chi-Technology Co's average shareholder tangible equity for the quarter that ended in Feb. 2026 was 円353 Mil. Therefore, Chi-Technology Co's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 40.46%.
The historical rank and industry rank for Chi-Technology Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:5581'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.45 Med: 14.42 Max: 64.16
Current: 20.23
During the past 5 years, Chi-Technology Co's highest Return-on-Tangible-Equity was 64.16%. The lowest was 4.45%. And the median was 14.42%.
TSE:5581's Return-on-Tangible-Equity is not ranked
in the Software industry.
Industry Median: 8.845
vs TSE:5581: 20.23
Chi-Technology Co (TSE:5581) 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.
Chi-Technology Co Return-on-Tangible-Equity Related Terms
Chi-Technology Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Chi-Technology 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.
TSE:5581 vs UBER, CRM, SHOP: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Chi-Technology 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.
Chi-Technology Co Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Chi-Technology Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Chi-Technology 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 (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 40.46% mean?
Chi-Technology Co (TSE:5581) has a Return-on-Tangible-Equity of 40.46% 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 Chi-Technology Co and its competitors. This is 181% above median its historical median of 14.42. Over the past decade, Chi-Technology Co's Return-on-Tangible-Equity has ranged from 4.45 to 64.16.
Is Chi-Technology Co's Return-on-Tangible-Equity too high?
Chi-Technology Co's current Return-on-Tangible-Equity of 40.46% is 181% above median its 10-year median of 14.42. Over the past 10 years, this metric has ranged from a low of 4.45 to a high of 64.16. The Software industry median Return-on-Tangible-Equity is 8.85. Chi-Technology Co's value of 40.46% is 357.4% above this industry median. Overall, Chi-Technology Co has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does Chi-Technology Co's Return-on-Tangible-Equity compare to UBER and CRM?
Chi-Technology Co's Return-on-Tangible-Equity of 40.46% can be compared against companies in the Software industry. The industry median Return-on-Tangible-Equity is 8.85. Chi-Technology Co's value of 40.46% is 357.4% above this benchmark. Historically, Chi-Technology Co's own Return-on-Tangible-Equity has ranged from 4.45 to 64.16 over the past decade. While the company's 10-year median is 14.42 vs. the industry median of 8.85, Chi-Technology 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 8.85, 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. Chi-Technology Co's current Return-on-Tangible-Equity of 40.46% is 357.4% 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 Chi-Technology Co 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. Chi-Technology Co's current Return-on-Tangible-Equity is 40.46%, which is 181% above median its own 10-year median of 14.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chi-Technology Co stock overvalued right now?
Chi-Technology Co (TSE:5581) has a current Return-on-Tangible-Equity of 40.46%. The stock's GF Value™ is 円266.28, compared to a current price of 円193.00 — trading 27.5% below its estimated fair value. The current Return-on-Tangible-Equity is 40.46%, which is 181% above median its 10-year median of 14.42 and 357.4% above the Software industry median of 8.85. Chi-Technology Co's overall GF Score™ is 31/100 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 Chi-Technology Co (TSE:5581), the current Return-on-Tangible-Equity is 40.46% 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 Chi-Technology Co (TSE:5581) Overvalued in 2026?
Based on GuruFocus' analysis, Chi-Technology Co stock appears to be undervalued.
The current stock price of 円193.00 is trading 27.5% below its estimated GF Value™ of 円266.28.
Key valuation signals for TSE:5581:
Return-on-Tangible-Equity: 40.46% (181% above median its 10-year median of 14.42)
GF Value™: 円266.28 vs. price of 円193.00 (27.5% below fair value)
Industry Position: 357.4% above the Software median
No single metric tells the full story. See the TSE:5581 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chi-Technology Co Ltd is engaged in Temporary staffing/SES business for manufacturing, logistics, broadcasting, and finance-related businesses, package sales business, and commissioned development business. Its services include Application development support, Software development, and Development and service operation of the nutrition management application.
31GF Score
Get the complete analysis for TSE:5581
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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