Japaniace Co (TSE:9558) Return-on-Tangible-Equity: 12.23% (As of May. 2026) — 44% Below 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:9558 Japaniace Co Ltd TSE:9558
84 GF Score
Price 円1,911.00
GF Value 円2,644.14
Valuation Modestly Undervalued
! 1 Warning Sign
View Full Analysis

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

Japaniace Co TSE:9558 -0.10% 84 Return-on-Tangible-Equity is 12.23% as of May. 2026, which is 44% below its 10-year median of 21.74. GuruFocus rates TSE:9558 with a GF Score™ of 84/100 and a GF Value™ of 円2,644.14 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,481 Software companies, Japaniace Co ranks better than 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. Japaniace Co's annualized net income for the quarter that ended in May. 2026 was 円387 Mil. Japaniace Co's average shareholder tangible equity for the quarter that ended in May. 2026 was 円3,167 Mil. Therefore, Japaniace Co's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2026 was 12.23%.

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

TSE:9558' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.31   Med: 21.74   Max: 24.77
Current: 21.91

During the past 6 years, Japaniace Co's highest Return-on-Tangible-Equity was 24.77%. The lowest was 12.31%. And the median was 21.74%.

TSE:9558's Return-on-Tangible-Equity is ranked better than
69% of 2481 companies
in the Software industry
Industry Median: 8.86 vs TSE:9558: 21.91

Japaniace Co  (TSE:9558) 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.


Japaniace Co Return-on-Tangible-Equity Related Terms


Japaniace Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Japaniace 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.

Japaniace Co Return-on-Tangible-Equity Chart

Japaniace Co Annual Data
Trend Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
Return-on-Tangible-Equity
Get a 7-Day Free Trial 14.28 20.18 23.29 24.77 24.10

Japaniace Co Semi-Annual Data
Nov20 Nov21 May22 Nov22 May23 Nov23 May24 Nov24 May25 Nov25 May26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 14.48 36.22 18.00 30.64 12.23

TSE:9558 vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison

For the Software - Infrastructure subindustry, Japaniace 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.


Japaniace Co Return-on-Tangible-Equity vs Software Industry

For the Software industry and Technology sector, Japaniace Co's Return-on-Tangible-Equity distribution charts can be found below:

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


TSE:9558
84GF Score
Japaniace Co Ltd TSE:9558
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Japaniace Co Return-on-Tangible-Equity Calculation

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

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Nov. 2025 )  (A: Nov. 2024 )(A: Nov. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Nov. 2025 )  (A: Nov. 2024 )(A: Nov. 2025 )
=765.152/( (2981.626+3368.505 )/ 2 )
=765.152/3175.0655
=24.10 %

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

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: May. 2026 )  (Q: Nov. 2025 )(Q: May. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: May. 2026 )  (Q: Nov. 2025 )(Q: May. 2026 )
=387.41/( (3368.505+2965.705)/ 2 )
=387.41/3167.105
=12.23 %

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

What does a Return-on-Tangible-Equity of 12.23% mean?
Japaniace Co (TSE:9558) has a Return-on-Tangible-Equity of 12.23% as of May. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Japaniace Co and its competitors. This is 44% below median its historical median of 21.74. Over the past decade, Japaniace Co's Return-on-Tangible-Equity has ranged from 12.31 to 24.77. According to the industry distribution chart, Japaniace Co ranks #769 out of 2481 companies in the Software industry, placing it in the top 31%.
Is Japaniace Co's Return-on-Tangible-Equity too high?
Japaniace Co's current Return-on-Tangible-Equity of 12.23% is 44% below median its 10-year median of 21.74. Over the past 10 years, this metric has ranged from a low of 12.31 to a high of 24.77. The Software industry median Return-on-Tangible-Equity is 8.86. Japaniace Co's value of 12.23% is 38% above this industry median. Based on the distribution chart, Japaniace Co ranks #769 out of 2481 companies in the Software industry, which is above the industry midpoint. Overall, Japaniace Co has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Japaniace Co's Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, Japaniace Co ranks #769 out of 2481 companies for Return-on-Tangible-Equity. This puts Japaniace Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.86. Japaniace Co's value of 12.23% is 38% above this benchmark. Historically, Japaniace Co's own Return-on-Tangible-Equity has ranged from 12.31 to 24.77 over the past decade. While the company's 10-year median is 21.74 vs. the industry median of 8.86, Japaniace 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 8.86, based on 2,481 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. Japaniace Co's current Return-on-Tangible-Equity of 12.23% is 38% 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 Japaniace Co and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japaniace Co's current Return-on-Tangible-Equity is 12.23%, which is 44% below median its own 10-year median of 21.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japaniace Co stock overvalued right now?
Based on GuruFocus' analysis, Japaniace Co (TSE:9558) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,644.14, compared to a current price of 円1,911.00 — trading 27.7% below its estimated fair value. The current Return-on-Tangible-Equity is 12.23%, which is 44% below median its 10-year median of 21.74 and 38% above the Software industry median of 8.86. Japaniace Co's overall GF Score™ is 84/100 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 Japaniace Co (TSE:9558), the current Return-on-Tangible-Equity is 12.23% as of May. 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 Japaniace Co (TSE:9558) Overvalued in 2026?

Based on GuruFocus' analysis, Japaniace Co stock appears to be undervalued. The current stock price of 円1,911.00 is trading 27.7% below its estimated GF Value™ of 円2,644.14. GuruFocus considers Japaniace Co to be Modestly Undervalued.

Key valuation signals for TSE:9558:

  • Return-on-Tangible-Equity: 12.23% (44% below median its 10-year median of 21.74)
  • GF Value™: 円2,644.14 vs. price of 円1,911.00 (27.7% below fair value)
  • GF Score™: 84/100 with 1 warning sign
  • Industry Position: 38% above the Software median (#769 of 2481)

No single metric tells the full story. See the TSE:9558 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Japaniace Co Business Description

Address 2-2-1 Minatomirai, Yokohama Landmark Tower 18th FLoor, Nishi Ward, Kanagawa Prefecture, Yokohama, JPN, 220-8118
Japaniace Co Ltd is engaged in the advanced engineering business centered on AI, IoT, and cloud.
84GF Score

Get the complete analysis for TSE:9558

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

円1,911.00
Price
円2,644.14
GF Value