Business Brain Showa Ota (TSE:9658) Return-on-Tangible-Equity: 13.00% (As of Mar. 2026) — Near Median

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TSE:9658 Business Brain Showa Ota Inc TSE:9658
80 GF Score
Price 円1,035.00
GF Value 円959.89
Valuation Fairly Valued
! 2 Warning Signs
View Full Analysis

What is Business Brain Showa Ota Return-on-Tangible-Equity?

Business Brain Showa Ota TSE:9658 +0.49% 80 Return-on-Tangible-Equity is 13.00% as of Mar. 2026, which is 5% below its 10-year median of 13.75. GuruFocus rates TSE:9658 with a GF Score™ of 80/100 and a GF Value™ of 円959.89 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,481 Software companies, Business Brain Showa Ota ranks better than 54.17% 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. Business Brain Showa Ota's annualized net income for the quarter that ended in Mar. 2026 was 円3,516 Mil. Business Brain Showa Ota's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円27,040 Mil. Therefore, Business Brain Showa Ota's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.00%.

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

TSE:9658' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.98   Med: 13.75   Max: 71.01
Current: 11.2

During the past 13 years, Business Brain Showa Ota's highest Return-on-Tangible-Equity was 71.01%. The lowest was 6.98%. And the median was 13.75%.

TSE:9658's Return-on-Tangible-Equity is ranked better than
54.17% of 2481 companies
in the Software industry
Industry Median: 8.86 vs TSE:9658: 11.20

Business Brain Showa Ota  (TSE:9658) 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.


Business Brain Showa Ota Return-on-Tangible-Equity Related Terms


Business Brain Showa Ota Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Business Brain Showa Ota'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.

Business Brain Showa Ota Return-on-Tangible-Equity Chart

Business Brain Showa Ota Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.80 13.92 71.01 9.53 11.14

Business Brain Showa Ota Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 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 7.59 7.56 11.24 9.39 13.00

TSE:9658 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison

For the Information Technology Services subindustry, Business Brain Showa Ota'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.


Business Brain Showa Ota Return-on-Tangible-Equity vs Software Industry

For the Software industry and Technology sector, Business Brain Showa Ota's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Business Brain Showa Ota's Return-on-Tangible-Equity falls into.


TSE:9658
80GF Score
Business Brain Showa Ota Inc TSE:9658
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Business Brain Showa Ota Return-on-Tangible-Equity Calculation

Business Brain Showa Ota'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 )
=2986.667/( (25949.053+27690.142 )/ 2 )
=2986.667/26819.5975
=11.14 %

Business Brain Showa Ota'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: Sep. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Sep. 2025 )(Q: Mar. 2026 )
=3515.624/( (26390.699+27690.142)/ 2 )
=3515.624/27040.4205
=13.00 %

* 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 (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 13.00% mean?
Business Brain Showa Ota (TSE:9658) has a Return-on-Tangible-Equity of 13.00% 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 Business Brain Showa Ota and its competitors. This is near median its historical median of 13.75. Over the past decade, Business Brain Showa Ota's Return-on-Tangible-Equity has ranged from 6.98 to 71.01. According to the industry distribution chart, Business Brain Showa Ota ranks #1137 out of 2481 companies in the Software industry, placing it in the top 45.8%.
Is Business Brain Showa Ota's Return-on-Tangible-Equity too high?
Business Brain Showa Ota's current Return-on-Tangible-Equity of 13.00% is near median its 10-year median of 13.75. Over the past 10 years, this metric has ranged from a low of 6.98 to a high of 71.01. The Software industry median Return-on-Tangible-Equity is 8.86. Business Brain Showa Ota's value of 13.00% is 46.7% above this industry median. Based on the distribution chart, Business Brain Showa Ota ranks #1137 out of 2481 companies in the Software industry, which is above the industry midpoint. Overall, Business Brain Showa Ota has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Business Brain Showa Ota's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Business Brain Showa Ota ranks #1137 out of 2481 companies for Return-on-Tangible-Equity. This puts Business Brain Showa Ota in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.86. Business Brain Showa Ota's value of 13.00% is 46.7% above this benchmark. Historically, Business Brain Showa Ota's own Return-on-Tangible-Equity has ranged from 6.98 to 71.01 over the past decade. While the company's 10-year median is 13.75 vs. the industry median of 8.86, Business Brain Showa Ota 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. Business Brain Showa Ota's current Return-on-Tangible-Equity of 13.00% is 46.7% 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 Business Brain Showa Ota 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. Business Brain Showa Ota's current Return-on-Tangible-Equity is 13.00%, which is near median its own 10-year median of 13.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Business Brain Showa Ota stock overvalued right now?
Based on GuruFocus' analysis, Business Brain Showa Ota (TSE:9658) is currently considered Fairly Valued. The stock's GF Value™ is 円959.89, compared to a current price of 円1,035.00 — trading 7.8% above its estimated fair value. The current Return-on-Tangible-Equity is 13.00%, which is near median its 10-year median of 13.75 and 46.7% above the Software industry median of 8.86. Business Brain Showa Ota's overall GF Score™ is 80/100 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 Business Brain Showa Ota (TSE:9658), the current Return-on-Tangible-Equity is 13.00% 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 Business Brain Showa Ota (TSE:9658) Overvalued in 2026?

Based on GuruFocus' analysis, Business Brain Showa Ota stock appears to be overvalued. The current stock price of 円1,035.00 is trading 7.8% above its estimated GF Value™ of 円959.89. GuruFocus considers Business Brain Showa Ota to be Fairly Valued.

Key valuation signals for TSE:9658:

  • Return-on-Tangible-Equity: 13.00% (near median its 10-year median of 13.75)
  • GF Value™: 円959.89 vs. price of 円1,035.00 (7.8% above fair value)
  • GF Score™: 80/100 with 2 warning signs
  • Industry Position: 46.7% above the Software median (#1137 of 2481)

No single metric tells the full story. See the TSE:9658 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Business Brain Showa Ota Business Description

Address 1-1-1 Nishi-Shinbashi, Hibiya Fort Tower, 15th Floor, Minato-ku, Tokyo, JPN, 105-0003
Business Brain Showa Ota Inc provides Consulting, System development, and Management services. The Group has two reportable segments: the Consulting and Systems Development Business and the Management Services (BPO) Business. It derives maximum revenue from Consulting and Systems Development Business.
80GF Score

Get the complete analysis for TSE:9658

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959.89
GF Value