Encourage Technologies Co (TSE:3682) ROCE %: 9.30% (As of Mar. 2026)

What is Encourage Technologies Co ROCE %?

Encourage Technologies Co TSE:3682 75 ROCE % is 9.30% as of Mar. 2026. GuruFocus rates TSE:3682 with a GF Score™ of 75/100 and a GF Value™ of 円640.96 (Fairly Valued). The stock has 4 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. Encourage Technologies Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 9.30%.

Encourage Technologies Co (TSE:3682) 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.

Encourage Technologies Co ROCE % Related Terms

Encourage Technologies Co ROCE % Historical Data

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The historical data trend for Encourage Technologies 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.

Encourage Technologies Co ROCE % Chart

Encourage Technologies Co Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

ROCE %

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10.68

7.27

9.33

8.51

8.46

Encourage Technologies Co Semi-Annual Data
	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24	Mar25	Sep25	Mar26
ROCE %	Get a 7-Day Free Trial															11.21	5.96	11.30	7.85	9.30

75GF Score

Encourage Technologies Co Ltd TSE:3682

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Encourage Technologies Co ROCE % Calculation

Encourage Technologies Co's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	303	/	( ( (4659.554 - 1114.575)	+	(4975.557 - 1357.641) )	/ 2 )
	=	303	/	( (3544.979	+	3617.916)	/ 2 )
	=	303	/	3581.4475
	=	8.46 %

Encourage Technologies 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: Sep. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Sep. 2025 )		(Q: Mar. 2026 )
	=	330.156	/	( ( (4826.445 - 1344.13)	+	(4975.557 - 1357.641) )	/ 2 )
	=	330.156	/	( ( 3482.315	+	3617.916 )	/ 2 )
	=	330.156	/	3550.1155
	=	9.30 %

(1) Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 9.30% mean?

Encourage Technologies Co (TSE:3682) has a ROCE % of 9.30% as of Mar. 2026.

Is Encourage Technologies Co's ROCE % too high?

Encourage Technologies Co's current ROCE % is 9.30%. The Software industry median ROCE % is 5.22. Encourage Technologies Co's value of 9.30% is 78.2% above this industry median. Overall, Encourage Technologies Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.

How does Encourage Technologies Co's ROCE % compare to IBM and ACN?

Encourage Technologies Co's ROCE % of 9.30% can be compared against companies in the Software industry. The industry median ROCE % is 5.22. Encourage Technologies Co's value of 9.30% is 78.2% above 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 5.22, based on 2,711 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. Encourage Technologies Co's current ROCE % of 9.30% is 78.2% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encourage Technologies Co's current ROCE % is 9.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Encourage Technologies Co stock overvalued right now?

Based on GuruFocus' analysis, Encourage Technologies Co (TSE:3682) is currently considered Fairly Valued. The stock's GF Value™ is 円640.96, compared to a current price of 円600.00 — trading 6.4% below its estimated fair value. The current ROCE % is 9.30% and 78.2% above the Software industry median of 5.22. Encourage Technologies Co's overall GF Score™ is 75/100 with 4 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 Encourage Technologies Co (TSE:3682), the current ROCE % is 9.30% 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 Encourage Technologies Co (TSE:3682) Overvalued in 2026?

Based on GuruFocus' analysis, Encourage Technologies Co stock appears to be undervalued. The current stock price of 円600.00 is trading 6.4% below its estimated GF Value™ of 円640.96. GuruFocus considers Encourage Technologies Co to be Fairly Valued.

Key valuation signals for TSE:3682:

ROCE %: 9.30%
GF Value™: 円640.96 vs. price of 円600.00 (6.4% below fair value)
GF Score™: 75/100 with 4 warning signs
Industry Position: 78.2% above the Software median

No single metric tells the full story. See the TSE:3682 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Encourage Technologies Co Business Description

Industry Technology Software

Comparable Companies TSE:2493 TSE:2375 TSE:460A TSE:3625 TSE:244A TSE:5868 TSE:3766 TSE:5026 TSE:4056 TSE:4386 IBM NSE:TCS ACN NSE:INFY TSE:6702 TSE:6701 NSE:HCLTECH FISV XMAD:AMS FIS

Address Tornare Nihonbashi Hamacho 7F, 3-3-2, Nihonbashi Hama-cho, Chuo-ku, Tokyo, JPN, 103-0007

Website https://www.et-x.jp

Encourage Technologies Co Ltd develops software that monitors and audits user activity in IT systems. The company also provides maintenance support after the installation of the software as well consulting services.

75GF Score

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

円600.00

Price

円640.96

GF Value

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