ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Information Technology Services subindustry, FCS Software Solutions's ROE %, along with its competitors' market caps and ROE % 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.
FCS Software Solutions ROE % vs Software Industry
For the Software industry and Technology sector, FCS Software Solutions's ROE % distribution charts can be found below:
* The bar in red indicates where FCS Software Solutions's ROE % falls into.
* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
FCS Software Solutions (NSE:FCSSOFT) has a ROE % of 5.19% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on FCS Software Solutions and its competitors. According to the industry distribution chart, FCS Software Solutions ranks #1622 out of 2677 companies in the Software industry, placing it in the top 60.6%.
Is FCS Software Solutions' ROE % too high?
FCS Software Solutions' current ROE % is 5.19%. The Software industry median ROE % is 4.69. FCS Software Solutions' value of 5.19% is 10.7% above this industry median. Based on the distribution chart, FCS Software Solutions ranks #1622 out of 2677 companies in the Software industry, which is below the industry midpoint. Overall, FCS Software Solutions has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does FCS Software Solutions' ROE % compare to IBM and ACN?
According to the Software industry distribution chart, FCS Software Solutions ranks #1622 out of 2677 companies for ROE %. This places FCS Software Solutions in the lower half of its industry. The industry median ROE % is 4.69. FCS Software Solutions' value of 5.19% is 10.7% 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 ROE % for a Software company?
The median ROE % among Software companies is 4.69, based on 2,677 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FCS Software Solutions's current ROE % of 5.19% is 10.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on FCS Software Solutions and its competitors. For the Software industry, the median ROE % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FCS Software Solutions's current ROE % is 5.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FCS Software Solutions stock overvalued right now?
Based on GuruFocus' analysis, FCS Software Solutions (NSE:FCSSOFT) is currently considered Possible Value Trap. The stock's GF Value™ is ₹5.84, compared to a current price of ₹1.51 — trading 74.1% below its estimated fair value. The current ROE % is 5.19% and 10.7% above the Software industry median of 4.69. FCS Software Solutions' overall GF Score™ is 60/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For FCS Software Solutions (NSE:FCSSOFT), the current ROE % is 5.19% 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 FCS Software Solutions (NSE:FCSSOFT) Overvalued in 2026?
Based on GuruFocus' analysis, FCS Software Solutions stock appears to be undervalued.
The current stock price of ₹1.51 is trading 74.1% below its estimated GF Value™ of ₹5.84.
GuruFocus considers FCS Software Solutions to be Possible Value Trap.
Key valuation signals for NSE:FCSSOFT:
ROE %: 5.19%
GF Value™: ₹5.84 vs. price of ₹1.51 (74.1% below fair value)
Industry Position: 10.7% above the Software median (#1622 of 2677)
No single metric tells the full story. See the NSE:FCSSOFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FCS Software Solutions Ltd is engaged in providing a range of IT and business services, engineering, and product & platform services. Its business consists of software development and marketing, and providing support services mainly for corporate business entities in the BPO sectors, software development, e-learning service, and other related Information Technology Enabled Services. Its segments are IT & IT Enable Services, Education/E-Learning Services, and Leasing Services. The Company also carries business of leasing or letting out all kinds of immovable property, including IT Infrastructural property, whether freehold, leasehold, to any type of person. The geographical segments include India and the USA.
60GF Score
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