Gakken Holdings Co (TSE:9470) Return-on-Tangible-Equity: 20.70% (As of Mar. 2026) — 144% 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:9470 Gakken Holdings Co Ltd TSE:9470
76 GF Score
Price 円1,035.00
GF Value 円1,203.89
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is Gakken Holdings Co Return-on-Tangible-Equity?

Gakken Holdings Co TSE:9470 +0.78% 76 Return-on-Tangible-Equity is 20.70% as of Mar. 2026, which is 144% above its 10-year median of 8.48. GuruFocus rates TSE:9470 with a GF Score™ of 76/100 and a GF Value™ of 円1,203.89 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 246 Education companies, Gakken Holdings Co ranks worse than 55.69% 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. Gakken Holdings Co's annualized net income for the quarter that ended in Mar. 2026 was 円6,732 Mil. Gakken Holdings Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円32,517 Mil. Therefore, Gakken Holdings Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 20.70%.

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

TSE:9470' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.68   Med: 8.48   Max: 10.69
Current: 9.73

During the past 13 years, Gakken Holdings Co's highest Return-on-Tangible-Equity was 10.69%. The lowest was 4.68%. And the median was 8.48%.

TSE:9470's Return-on-Tangible-Equity is ranked worse than
55.69% of 246 companies
in the Education industry
Industry Median: 11.685 vs TSE:9470: 9.73

Gakken Holdings Co  (TSE:9470) 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.


Gakken Holdings Co Return-on-Tangible-Equity Related Terms


Gakken Holdings Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Gakken Holdings 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.

Gakken Holdings Co Return-on-Tangible-Equity Chart

Gakken Holdings Co Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.33 8.95 7.81 5.62 10.19

Gakken Holdings Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 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 0.00 3.61 10.13 5.08 20.70

TSE:9470 vs EDU, TAL, LAUR: Return-on-Tangible-Equity Comparison

For the Education & Training Services subindustry, Gakken Holdings 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.


Gakken Holdings Co Return-on-Tangible-Equity vs Education Industry

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

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


TSE:9470
76GF Score
Gakken Holdings Co Ltd TSE:9470
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Gakken Holdings Co Return-on-Tangible-Equity Calculation

Gakken Holdings Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Sep. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Sep. 2025 )  (A: Sep. 2024 )(A: Sep. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Sep. 2025 )  (A: Sep. 2024 )(A: Sep. 2025 )
=3578/( (38357+31851 )/ 2 )
=3578/35104
=10.19 %

Gakken Holdings Co'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 )
=6732/( (31590+33444)/ 2 )
=6732/32517
=20.70 %

* 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 20.70% mean?
Gakken Holdings Co (TSE:9470) has a Return-on-Tangible-Equity of 20.70% 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 Gakken Holdings Co and its competitors. This is 144% above median its historical median of 8.48. Over the past decade, Gakken Holdings Co's Return-on-Tangible-Equity has ranged from 4.68 to 10.69. According to the industry distribution chart, Gakken Holdings Co ranks #137 out of 246 companies in the Education industry, placing it in the top 55.7%.
Is Gakken Holdings Co's Return-on-Tangible-Equity too high?
Gakken Holdings Co's current Return-on-Tangible-Equity of 20.70% is 144% above median its 10-year median of 8.48. Over the past 10 years, this metric has ranged from a low of 4.68 to a high of 10.69. The Education industry median Return-on-Tangible-Equity is 11.69. Gakken Holdings Co's value of 20.70% is 77.2% above this industry median. Based on the distribution chart, Gakken Holdings Co ranks #137 out of 246 companies in the Education industry, which is below the industry midpoint. Overall, Gakken Holdings Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gakken Holdings Co's Return-on-Tangible-Equity compare to EDU and TAL?
According to the Education industry distribution chart, Gakken Holdings Co ranks #137 out of 246 companies for Return-on-Tangible-Equity. This places Gakken Holdings Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.69. Gakken Holdings Co's value of 20.70% is 77.2% above this benchmark. Historically, Gakken Holdings Co's own Return-on-Tangible-Equity has ranged from 4.68 to 10.69 over the past decade. While the company's 10-year median is 8.48 vs. the industry median of 11.69, Gakken Holdings 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 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. Gakken Holdings Co's current Return-on-Tangible-Equity of 20.70% is 77.2% 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 Gakken Holdings Co 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. Gakken Holdings Co's current Return-on-Tangible-Equity is 20.70%, which is 144% above median its own 10-year median of 8.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gakken Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Gakken Holdings Co (TSE:9470) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,203.89, compared to a current price of 円1,035.00 — trading 14% below its estimated fair value. The current Return-on-Tangible-Equity is 20.70%, which is 144% above median its 10-year median of 8.48 and 77.2% above the Education industry median of 11.69. Gakken Holdings Co's overall GF Score™ is 76/100 with 3 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 Gakken Holdings Co (TSE:9470), the current Return-on-Tangible-Equity is 20.70% 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 Gakken Holdings Co (TSE:9470) Overvalued in 2026?

Based on GuruFocus' analysis, Gakken Holdings Co stock appears to be undervalued. The current stock price of 円1,035.00 is trading 14% below its estimated GF Value™ of 円1,203.89. GuruFocus considers Gakken Holdings Co to be Modestly Undervalued.

Key valuation signals for TSE:9470:

  • Return-on-Tangible-Equity: 20.70% (144% above median its 10-year median of 8.48)
  • GF Value™: 円1,203.89 vs. price of 円1,035.00 (14% below fair value)
  • GF Score™: 76/100 with 3 warning signs
  • Industry Position: 77.2% above the Education median (#137 of 246)

No single metric tells the full story. See the TSE:9470 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Gakken Holdings Co Business Description

Address 11-8 Nishigotanda 2-chome, Shinagawa-ku, Tokyo, JPN, 141-8510
Gakken Holdings Co Ltd is a Japan-based company offering education and training services. Its business activities include publishing, education, and stationery. Its publishing business includes picture books, illustrated reference books, reading materials, study guides, educational books helpful for business skills, and entertainment magazines. The education business conducts science experiments, math, and intellectual development classroom sessions. The stationery business designs, develops, and sells stationery and general merchandise such as fusen (tags), notebooks, fun-tape, letters, envelopes, calendars, and lunch boxes. Gakken also develops and operates daycare centers, kindergartens, special services for the elderly, and home-care nursing services.
76GF Score

Get the complete analysis for TSE:9470

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

円1,035.00
Price
円1,203.89
GF Value