Arealink Co (TSE:8914) Return-on-Tangible-Equity: 10.68% (As of Dec. 2025) — 12% Below Median

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TSE:8914 Arealink Co Ltd TSE:8914
65 GF Score
Price 円894.00
GF Value 円983.44
Valuation Fairly Valued
! 2 Warning Signs
View Full Analysis

What is Arealink Co Return-on-Tangible-Equity?

Arealink Co TSE:8914 +1.36% 65 Return-on-Tangible-Equity is 10.68% as of Dec. 2025, which is 12% below its 10-year median of 12.09. GuruFocus rates TSE:8914 with a GF Score™ of 65/100 and a GF Value™ of 円983.44 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,719 Real Estate companies, Arealink Co ranks better than 78.82% 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. Arealink Co's annualized net income for the quarter that ended in Dec. 2025 was 円3,056 Mil. Arealink Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was 円28,604 Mil. Therefore, Arealink Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 10.68%.

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

TSE:8914' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -10.04   Med: 12.09   Max: 16.27
Current: 12.71

During the past 13 years, Arealink Co's highest Return-on-Tangible-Equity was 16.27%. The lowest was -10.04%. And the median was 12.09%.

TSE:8914's Return-on-Tangible-Equity is ranked better than
78.82% of 1719 companies
in the Real Estate industry
Industry Median: 4.27 vs TSE:8914: 12.71

Arealink Co  (TSE:8914) 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.


Arealink Co Return-on-Tangible-Equity Related Terms


Arealink Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Arealink 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.

Arealink Co Return-on-Tangible-Equity Chart

Arealink Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.27 13.13 11.76 12.41 13.33

Arealink Co 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 16.59 14.00 12.31 10.68 13.82

TSE:8914 vs CBRE, BEKE, JLL: Return-on-Tangible-Equity Comparison

For the Real Estate Services subindustry, Arealink 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.


Arealink Co Return-on-Tangible-Equity vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Arealink Co's Return-on-Tangible-Equity distribution charts can be found below:

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


TSE:8914
65GF Score
Arealink Co Ltd TSE:8914
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arealink Co Return-on-Tangible-Equity Calculation

Arealink 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 )
=3704.733/( (26602.989+28970.431 )/ 2 )
=3704.733/27786.71
=13.33 %

Arealink Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=3056.3/( (28237.818+28970.431)/ 2 )
=3056.3/28604.1245
=10.68 %

* 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 (Dec. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 10.68% mean?
Arealink Co (TSE:8914) has a Return-on-Tangible-Equity of 10.68% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arealink Co and its competitors. This is 12% below median its historical median of 12.09. According to the industry distribution chart, Arealink Co ranks #364 out of 1719 companies in the Real Estate industry, placing it in the top 21.2%.
Is Arealink Co's Return-on-Tangible-Equity too high?
Arealink Co's current Return-on-Tangible-Equity of 10.68% is 12% below median its 10-year median of 12.09. The Real Estate industry median Return-on-Tangible-Equity is 4.27. Arealink Co's value of 10.68% is 150.1% above this industry median. Based on the distribution chart, Arealink Co ranks #364 out of 1719 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Arealink Co has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arealink Co's Return-on-Tangible-Equity compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Arealink Co ranks #364 out of 1719 companies for Return-on-Tangible-Equity. This places Arealink Co in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.27. Arealink Co's value of 10.68% is 150.1% above this benchmark. While the company's 10-year median is 12.09 vs. the industry median of 4.27, Arealink 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 Real Estate company?
The median Return-on-Tangible-Equity among Real Estate companies is 4.27, based on 1,719 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. Arealink Co's current Return-on-Tangible-Equity of 10.68% is 150.1% 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 Arealink Co and its competitors. For the Real Estate industry, the median Return-on-Tangible-Equity is 4.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arealink Co's current Return-on-Tangible-Equity is 10.68%, which is 12% below median its own 10-year median of 12.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arealink Co stock overvalued right now?
Based on GuruFocus' analysis, Arealink Co (TSE:8914) is currently considered Fairly Valued. The stock's GF Value™ is 円983.44, compared to a current price of 円894.00 — trading 9.1% below its estimated fair value. The current Return-on-Tangible-Equity is 10.68%, which is 12% below median its 10-year median of 12.09 and 150.1% above the Real Estate industry median of 4.27. Arealink Co's overall GF Score™ is 65/100 with 2 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 Arealink Co (TSE:8914), the current Return-on-Tangible-Equity is 10.68% as of Dec. 2025. 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 Arealink Co (TSE:8914) Overvalued in 2026?

Based on GuruFocus' analysis, Arealink Co stock appears to be undervalued. The current stock price of 円894.00 is trading 9.1% below its estimated GF Value™ of 円983.44. GuruFocus considers Arealink Co to be Fairly Valued.

Key valuation signals for TSE:8914:

  • Return-on-Tangible-Equity: 10.68% (12% below median its 10-year median of 12.09)
  • GF Value™: 円983.44 vs. price of 円894.00 (9.1% below fair value)
  • GF Score™: 65/100 with 2 warning signs
  • Industry Position: 150.1% above the Real Estate median (#364 of 1719)

No single metric tells the full story. See the TSE:8914 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arealink Co Business Description

Address 3-1, Kanda ogawamachi, Chiyoda-ku, Tokyo, JPN, 101-0052
Arealink Co Ltd is a Japan based company engages in the real estate business. The company provides space for the storage of daily living and general items; land, condominiums, and buildings as storage and office space; and business spaces, including small-scale offices, rental meeting rooms, galleries, and related facilities.
65GF Score

Get the complete analysis for TSE:8914

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

円894.00
Price
円983.44
GF Value