Digital Hearts Holdings Co (TSE:3676) ROA %: -4.41% (As of Mar. 2026)


TSE:3676 Digital Hearts Holdings Co Ltd TSE:3676
74 GF Score
Price 円730.00
GF Value 円959.29
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Digital Hearts Holdings Co ROA %?

Digital Hearts Holdings Co TSE:3676 -0.41% 74 ROA % is -4.41% as of Mar. 2026. GuruFocus rates TSE:3676 with a GF Score™ of 74/100 and a GF Value™ of 円959.29 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,877 Software companies, Digital Hearts Holdings Co ranks better than 68.09% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Digital Hearts Holdings Co's annualized Net Income for the quarter that ended in Mar. 2026 was 円-961 Mil. Digital Hearts Holdings Co's average Total Assets over the quarter that ended in Mar. 2026 was 円21,777 Mil. Therefore, Digital Hearts Holdings Co's annualized ROA % for the quarter that ended in Mar. 2026 was -4.41%.

The historical rank and industry rank for Digital Hearts Holdings Co's ROA % or its related term are showing as below:

TSE:3676' s ROA % Range Over the Past 10 Years
Min: 0.87   Med: 7.77   Max: 17.12
Current: 5.71

During the past 13 years, Digital Hearts Holdings Co's highest ROA % was 17.12%. The lowest was 0.87%. And the median was 7.77%.

TSE:3676's ROA % is ranked better than
68.09% of 2877 companies
in the Software industry
Industry Median: 1.67 vs TSE:3676: 5.71

Digital Hearts Holdings Co  (TSE:3676) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Mar. 2026 )
=Net Income/Total Assets
=-961.376/21776.678
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-961.376 / 39365.088)*(39365.088 / 21776.678)
=Net Margin %*Asset Turnover
=-2.44 %*1.8077
=-4.41 %

Note: The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Digital Hearts Holdings Co ROA % Related Terms


Digital Hearts Holdings Co ROA % Historical Data

* Premium members only.

The historical data trend for Digital Hearts Holdings Co's ROA % 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.

Digital Hearts Holdings Co ROA % Chart

Digital Hearts Holdings Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.13 4.30 0.87 3.07 5.70

Digital Hearts Holdings Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROA % 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 -14.86 9.36 5.88 12.56 -4.41

TSE:3676 vs IBM, ACN, FISV: ROA % Comparison

For the Information Technology Services subindustry, Digital Hearts Holdings Co's ROA %, along with its competitors' market caps and ROA % 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.


Digital Hearts Holdings Co ROA % vs Software Industry

For the Software industry and Technology sector, Digital Hearts Holdings Co's ROA % distribution charts can be found below:

* The bar in red indicates where Digital Hearts Holdings Co's ROA % falls into.


TSE:3676
74GF Score
Digital Hearts Holdings Co Ltd TSE:3676
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Digital Hearts Holdings Co ROA % Calculation

Digital Hearts Holdings Co's annualized ROA % for the fiscal year that ended in Mar. 2026 is calculated as:

ROA %=Net Income (A: Mar. 2026 )/( (Total Assets (A: Mar. 2025 )+Total Assets (A: Mar. 2026 ))/ count )
=1181.667/( (19949.49+21531.848)/ 2 )
=1181.667/20740.669
=5.70 %

Digital Hearts Holdings Co's annualized ROA % for the quarter that ended in Mar. 2026 is calculated as:

ROA %=Net Income (Q: Mar. 2026 )/( (Total Assets (Q: Dec. 2025 )+Total Assets (Q: Mar. 2026 ))/ count )
=-961.376/( (22021.508+21531.848)/ 2 )
=-961.376/21776.678
=-4.41 %

* 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 ROA %, the net income of the last fiscal year and the average total assets 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. ROA % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of -4.41% mean?
Digital Hearts Holdings Co (TSE:3676) has a ROA % of -4.41% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Digital Hearts Holdings Co and its competitors. Over the past decade, Digital Hearts Holdings Co's ROA % has ranged from 0.87 to 17.12. According to the industry distribution chart, Digital Hearts Holdings Co ranks #918 out of 2877 companies in the Software industry, placing it in the top 31.9%.
Is Digital Hearts Holdings Co's ROA % too high?
Digital Hearts Holdings Co's current ROA % is -4.41%. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 17.12. Based on the distribution chart, Digital Hearts Holdings Co ranks #918 out of 2877 companies in the Software industry, which is above the industry midpoint. Overall, Digital Hearts Holdings Co has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Digital Hearts Holdings Co's ROA % compare to IBM and ACN?
According to the Software industry distribution chart, Digital Hearts Holdings Co ranks #918 out of 2877 companies for ROA %. This puts Digital Hearts Holdings Co in the upper half of its industry. The industry median ROA % is 1.67. Historically, Digital Hearts Holdings Co's own ROA % has ranged from 0.87 to 17.12 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 ROA % for a Software company?
The median ROA % among Software companies is 1.67, based on 2,877 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Digital Hearts Holdings Co and its competitors. For the Software industry, the median ROA % is 1.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Hearts Holdings Co's current ROA % is -4.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Hearts Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Digital Hearts Holdings Co (TSE:3676) is currently considered Modestly Undervalued. The stock's GF Value™ is 円959.29, compared to a current price of 円730.00 — trading 23.9% below its estimated fair value. The current ROA % is -4.41%. Digital Hearts Holdings Co's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Digital Hearts Holdings Co (TSE:3676), the current ROA % is -4.41% 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 Digital Hearts Holdings Co (TSE:3676) Overvalued in 2026?

Based on GuruFocus' analysis, Digital Hearts Holdings Co stock appears to be undervalued. The current stock price of 円730.00 is trading 23.9% below its estimated GF Value™ of 円959.29. GuruFocus considers Digital Hearts Holdings Co to be Modestly Undervalued.

Key valuation signals for TSE:3676:

  • ROA %: -4.41%
  • GF Value™: 円959.29 vs. price of 円730.00 (23.9% below fair value)
  • GF Score™: 74/100 with 3 warning signs

No single metric tells the full story. See the TSE:3676 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Digital Hearts Holdings Co Business Description

Address 41st Floor, Tokyo Opera City Building, 3-20-2 Nishi-shinjuku, Shinjuku-ku, Tokyo, JPN, 163-1441
Digital Hearts Holdings Co Ltd is a Japan-based company engaged in Entertainment Business and Enterprise Business. Its Entertainment business is involved in Debugging Business, Media Business and Creative Business. Its Enterprise Business is involved in Testing and Monitoring, Security and System Development.
74GF Score

Get the complete analysis for TSE:3676

ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円730.00
Price
円959.29
GF Value