Linkage Software Co (SHSE:688588) ROCE %: 2.67% (As of Mar. 2026)


SHSE:688588 Linkage Software Co Ltd SHSE:688588
77 GF Score
Price ¥8.86
GF Value ¥14.68
Valuation Significantly Undervalued
! 6 Warning Signs
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What is Linkage Software Co ROCE %?

Linkage Software Co SHSE:688588 -1.34% 77 ROCE % is 2.67% as of Mar. 2026. GuruFocus rates SHSE:688588 with a GF Score™ of 77/100 and a GF Value™ of ¥14.68 (Significantly Undervalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Linkage Software Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 2.67%.

Linkage Software Co  (SHSE:688588) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Linkage Software Co ROCE % Related Terms

Linkage Software Co ROCE % Historical Data

* Premium members only.

The historical data trend for Linkage Software Co's ROCE % 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.

Linkage Software Co ROCE % Chart

Linkage Software Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.58 11.79 7.28 12.84 10.52

Linkage Software Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % 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 23.66 16.17 -4.66 5.49 2.67
SHSE:688588
77GF Score
Linkage Software Co Ltd SHSE:688588
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Linkage Software Co ROCE % Calculation

Linkage Software Co's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=132.483/( ( (1790.371 - 511.603) + (1721.55 - 481.438) )/ 2 )
=132.483/( (1278.768+1240.112)/ 2 )
=132.483/1259.44
=10.52 %

Linkage Software Co's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=33.06/( ( (1721.55 - 481.438) + (1729.474 - 491.912) )/ 2 )
=33.06/( ( 1240.112 + 1237.562 )/ 2 )
=33.06/1238.837
=2.67 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 2.67% mean?
Linkage Software Co (SHSE:688588) has a ROCE % of 2.67% as of Mar. 2026.
Is Linkage Software Co's ROCE % too high?
Linkage Software Co's current ROCE % is 2.67%. The Software industry median ROCE % is 5.19. Linkage Software Co's value of 2.67% is 48.6% below this industry median. Overall, Linkage Software Co has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Linkage Software Co's ROCE % compare to UBER and SHOP?
Linkage Software Co's ROCE % of 2.67% can be compared against companies in the Software industry. The industry median ROCE % is 5.19. Linkage Software Co's value of 2.67% is 48.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.19, based on 2,709 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Linkage Software Co's current ROCE % of 2.67% is 48.6% below 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Linkage Software Co's current ROCE % is 2.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Linkage Software Co stock overvalued right now?
Based on GuruFocus' analysis, Linkage Software Co (SHSE:688588) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥14.68, compared to a current price of ¥8.86 — trading 39.6% below its estimated fair value. The current ROCE % is 2.67% and 48.6% below the Software industry median of 5.19. Linkage Software Co's overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Linkage Software Co (SHSE:688588), the current ROCE % is 2.67% 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 Linkage Software Co (SHSE:688588) Overvalued in 2026?

Based on GuruFocus' analysis, Linkage Software Co stock appears to be undervalued. The current stock price of ¥8.86 is trading 39.6% below its estimated GF Value™ of ¥14.68. GuruFocus considers Linkage Software Co to be Significantly Undervalued.

Key valuation signals for SHSE:688588:

  • ROCE %: 2.67%
  • GF Value™: ¥14.68 vs. price of ¥8.86 (39.6% below fair value)
  • GF Score™: 77/100 with 6 warning signs
  • Industry Position: 48.6% below the Software median

No single metric tells the full story. See the SHSE:688588 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Linkage Software Co Business Description

Address No. 96, Qitai Road, Suzhou Industrial Park, Lingzhi Building, Jiangsu Province, Suzhou, CHN, 215123
Linkage Software Co Ltd is a financial software solution provider. The company is committed to the application of emerging technologies in the financial industry, providing customers with a full range of software services such as consulting, design, development, and maintenance. It provides software services in the fields of securities, insurance, banking, trust, and asset management. It uses various technologies such as cloud computing, big data, and artificial intelligence.
77GF Score

Get the complete analysis for SHSE:688588

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

¥8.86
Price
¥14.68
GF Value