Litalico (TSE:7366) Return-on-Tangible-Equity: Negative Tangible Equity% (As of Mar. 2026)

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TSE:7366 Litalico Inc TSE:7366
84 GF Score
Price 円1,668.00
GF Value 円1,663.33
Valuation Fairly Valued
! 10 Warning Signs
View Full Analysis

What is Litalico Return-on-Tangible-Equity?

Litalico TSE:7366 -1.88% 84 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates TSE:7366 with a GF Score™ of 84/100 and a GF Value™ of 円1,663.33 (Fairly Valued). The stock has 10 warning signs investors should review. Among 246 Education companies, Litalico ranks better than 99.59% 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. Litalico's annualized net income for the quarter that ended in Mar. 2026 was 円4,220 Mil. Litalico's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円-1,090 Mil. Therefore, Litalico's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.

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

TSE:7366' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 95.62   Med: 126.63   Max: 160.99
Current: Negative Tangible Equity

During the past 6 years, Litalico's highest Return-on-Tangible-Equity was 160.99%. The lowest was 95.62%. And the median was 126.63%.

TSE:7366's Return-on-Tangible-Equity is ranked better than
99.59% of 246 companies
in the Education industry
Industry Median: 11.685 vs TSE:7366: Negative Tangible Equity

Litalico  (TSE:7366) 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.


Litalico Return-on-Tangible-Equity Related Terms


Litalico Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Litalico'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.

Litalico Return-on-Tangible-Equity Chart

Litalico Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Return-on-Tangible-Equity
Get a 7-Day Free Trial 111.26 95.62 142.00 160.99 Negative Tangible Equity

Litalico Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

TSE:7366 vs EDU, TAL, LAUR: Return-on-Tangible-Equity Comparison

For the Education & Training Services subindustry, Litalico'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.


Litalico Return-on-Tangible-Equity vs Education Industry

For the Education industry and Consumer Defensive sector, Litalico's Return-on-Tangible-Equity distribution charts can be found below:

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


TSE:7366
84GF Score
Litalico Inc TSE:7366
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Litalico Return-on-Tangible-Equity Calculation

Litalico's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=2738/( (-516+-885 )/ 2 )
=2738/-700.5
=Negative Tangible Equity %

Litalico's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=4220/( (-1294+-885)/ 2 )
=4220/-1089.5
=Negative Tangible Equity %

* 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 (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 Negative Tangible Equity% mean?
Litalico (TSE:7366) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Litalico and its competitors. Over the past decade, Litalico's Return-on-Tangible-Equity has ranged from 95.62 to 160.99. According to the industry distribution chart, Litalico ranks #1 out of 246 companies in the Education industry, placing it in the top 0.40000000000001%.
Is Litalico's Return-on-Tangible-Equity too high?
Litalico's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 95.62 to a high of 160.99. Based on the distribution chart, Litalico ranks #1 out of 246 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Litalico has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Litalico's Return-on-Tangible-Equity compare to EDU and TAL?
According to the Education industry distribution chart, Litalico ranks #1 out of 246 companies for Return-on-Tangible-Equity. This places Litalico in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.69. Historically, Litalico's own Return-on-Tangible-Equity has ranged from 95.62 to 160.99 over the past decade. 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 an Education company?
The median Return-on-Tangible-Equity among Education companies is 11.69, based on 246 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. 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 Litalico and its competitors. For the Education industry, the median Return-on-Tangible-Equity is 11.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Litalico's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Litalico stock overvalued right now?
Based on GuruFocus' analysis, Litalico (TSE:7366) is currently considered Fairly Valued. The stock's GF Value™ is 円1,663.33, compared to a current price of 円1,668.00 — trading 0.3% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Litalico's overall GF Score™ is 84/100 with 10 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 Litalico (TSE:7366), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Litalico (TSE:7366) Overvalued in 2026?

Based on GuruFocus' analysis, Litalico stock appears to be overvalued. The current stock price of 円1,668.00 is trading 0.3% above its estimated GF Value™ of 円1,663.33. GuruFocus considers Litalico to be Fairly Valued.

Key valuation signals for TSE:7366:

  • Return-on-Tangible-Equity: Negative Tangible Equity%
  • GF Value™: 円1,663.33 vs. price of 円1,668.00 (0.3% above fair value)
  • GF Score™: 84/100 with 10 warning signs

No single metric tells the full story. See the TSE:7366 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Litalico Business Description

Address 2-1-1, Kamimeguro, Nakameguro GT Tower 15th,16th and 20th Floor, Meguro-k, Tokyo, JPN, 153-0051
Litalico Inc offers educational services such as employment support, early childhood classes and others.
84GF Score

Get the complete analysis for TSE:7366

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

円1,668.00
Price
円1,663.33
GF Value