Es Networks Co (TSE:5867) Return-on-Tangible-Equity: 44.43% (As of Jun. 2026) — 273% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

TSE:5867 Es Networks Co Ltd TSE:5867
38 GF Score
Price 円1,312.00
GF Value 円1,698.33
Valuation Modestly Undervalued
! 1 Warning Sign
View Full Analysis

What is Es Networks Co Return-on-Tangible-Equity?

Es Networks Co TSE:5867 +2.98% 38 Return-on-Tangible-Equity is 44.43% as of Jun. 2026, which is 273% above its 10-year median of 11.92. GuruFocus rates TSE:5867 with a GF Score™ of 38/100 and a GF Value™ of 円1,698.33 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,009 Business Services companies, Es Networks Co ranks better than 70.66% 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. Es Networks Co's annualized net income for the quarter that ended in Jun. 2026 was 円718 Mil. Es Networks Co's average shareholder tangible equity for the quarter that ended in Jun. 2026 was 円1,616 Mil. Therefore, Es Networks Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 44.43%.

The historical rank and industry rank for Es Networks Co's Return-on-Tangible-Equity or its related term are showing as below:

TSE:5867' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.31   Med: 11.92   Max: 22.54
Current: 22.54

During the past 5 years, Es Networks Co's highest Return-on-Tangible-Equity was 22.54%. The lowest was 10.31%. And the median was 11.92%.

TSE:5867's Return-on-Tangible-Equity is ranked better than
70.66% of 1009 companies
in the Business Services industry
Industry Median: 11.37 vs TSE:5867: 22.54

Es Networks Co  (TSE:5867) 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.


Es Networks Co Return-on-Tangible-Equity Related Terms


Es Networks Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Es Networks 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.

Es Networks Co Return-on-Tangible-Equity Chart

Es Networks Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Equity
10.31 11.92 10.75 21.27 13.78

Es Networks Co Quarterly Data
Dec21 Dec22 Sep23 Dec23 Mar24 Jun24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.81 9.83 10.26 24.68 44.43

TSE:5867 vs VRSK, EFX, BAH: Return-on-Tangible-Equity Comparison

For the Consulting Services subindustry, Es Networks 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.


Es Networks Co Return-on-Tangible-Equity vs Business Services Industry

For the Business Services industry and Industrials sector, Es Networks Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Es Networks Co's Return-on-Tangible-Equity falls into.


TSE:5867
38GF Score
Es Networks Co Ltd TSE:5867
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Es Networks Co Return-on-Tangible-Equity Calculation

Es Networks Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=217.536/( (1503.466+1654.472 )/ 2 )
=217.536/1578.969
=13.78 %

Es Networks Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=717.944/( (1604.26+1627.79)/ 2 )
=717.944/1616.025
=44.43 %

* 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 (Jun. 2026) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 44.43% mean?
Es Networks Co (TSE:5867) has a Return-on-Tangible-Equity of 44.43% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Es Networks Co and its competitors. This is 273% above median its historical median of 11.92. Over the past decade, Es Networks Co's Return-on-Tangible-Equity has ranged from 10.31 to 22.54. According to the industry distribution chart, Es Networks Co ranks #296 out of 1009 companies in the Business Services industry, placing it in the top 29.3%.
Is Es Networks Co's Return-on-Tangible-Equity too high?
Es Networks Co's current Return-on-Tangible-Equity of 44.43% is 273% above median its 10-year median of 11.92. Over the past 10 years, this metric has ranged from a low of 10.31 to a high of 22.54. The Business Services industry median Return-on-Tangible-Equity is 11.37. Es Networks Co's value of 44.43% is 290.8% above this industry median. Based on the distribution chart, Es Networks Co ranks #296 out of 1009 companies in the Business Services industry, which is above the industry midpoint. Overall, Es Networks Co has a GF Score™ of 38/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Es Networks Co's Return-on-Tangible-Equity compare to VRSK and EFX?
According to the Business Services industry distribution chart, Es Networks Co ranks #296 out of 1009 companies for Return-on-Tangible-Equity. This puts Es Networks Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.37. Es Networks Co's value of 44.43% is 290.8% above this benchmark. Historically, Es Networks Co's own Return-on-Tangible-Equity has ranged from 10.31 to 22.54 over the past decade. While the company's 10-year median is 11.92 vs. the industry median of 11.37, Es Networks 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 11.37, based on 1,009 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. Es Networks Co's current Return-on-Tangible-Equity of 44.43% is 290.8% 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 Es Networks Co and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 11.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Es Networks Co's current Return-on-Tangible-Equity is 44.43%, which is 273% above median its own 10-year median of 11.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Es Networks Co stock overvalued right now?
Based on GuruFocus' analysis, Es Networks Co (TSE:5867) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,698.33, compared to a current price of 円1,312.00 — trading 22.7% below its estimated fair value. The current Return-on-Tangible-Equity is 44.43%, which is 273% above median its 10-year median of 11.92 and 290.8% above the Business Services industry median of 11.37. Es Networks Co's overall GF Score™ is 38/100 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 Es Networks Co (TSE:5867), the current Return-on-Tangible-Equity is 44.43% as of Jun. 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 Es Networks Co (TSE:5867) Overvalued in 2026?

Based on GuruFocus' analysis, Es Networks Co stock appears to be undervalued. The current stock price of 円1,312.00 is trading 22.7% below its estimated GF Value™ of 円1,698.33. GuruFocus considers Es Networks Co to be Modestly Undervalued.

Key valuation signals for TSE:5867:

  • Return-on-Tangible-Equity: 44.43% (273% above median its 10-year median of 11.92)
  • GF Value™: 円1,698.33 vs. price of 円1,312.00 (22.7% below fair value)
  • GF Score™: 38/100 with 1 warning sign
  • Industry Position: 290.8% above the Business Services median (#296 of 1009)

No single metric tells the full story. See the TSE:5867 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Es Networks Co Business Description

Address 2-7-2, Marunouchi, JP Tower Building, 23 Floor, Chiyoda-ku, Tokyo, JPN, 100- 7023
Es Networks Co Ltd provides one-stop CFO and consulting services to companies in the transformation phase. Its consulting business includes management support consulting, revitalization support consulting, and overseas expansion support consulting. Management support consulting delivers CFO functions for companies at growth turning points, including M&A, IPOs, and PMI. Revitalization support consulting provides turnaround support through analysis and implementation of restructuring plans. Overseas expansion support consulting supports expansion into Southeast Asia, including local setup and operational support. The Group also invests in companies with growth potential and provides management support to increase value.
38GF Score

Get the complete analysis for TSE:5867

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,312.00
Price
円1,698.33
GF Value