SYKKF (Soliton Systems KK) ROE %: 26.83% (As of Dec. 2025) — 61% Above Median


SYKKF Soliton Systems KK SYKKF
74 GF Score
Price $8.75
GF Value $5.66
! 5 Warning Signs
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What is Soliton Systems KK ROE %?

Soliton Systems KK SYKKF 74 ROE % is 26.83% as of Dec. 2025, which is 61% above its 10-year median of 16.66. GuruFocus rates SYKKF with a GF Score™ of 74/100 and a GF Value™ of $5.66. The stock has 5 warning signs investors should review. Among 2,682 Software companies, Soliton Systems KK ranks better than 82.55% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Soliton Systems KK's annualized net income for the quarter that ended in Dec. 2025 was $22.7 Mil. Soliton Systems KK's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was $84.4 Mil. Therefore, Soliton Systems KK's annualized ROE % for the quarter that ended in Dec. 2025 was 26.83%.

The historical rank and industry rank for Soliton Systems KK's ROE % or its related term are showing as below:

SYKKF' s ROE % Range Over the Past 10 Years
Min: 5.38   Med: 16.66   Max: 24.2
Current: 20.47

During the past 13 years, Soliton Systems KK's highest ROE % was 24.20%. The lowest was 5.38%. And the median was 16.66%.

SYKKF's ROE % is ranked better than
82.55% of 2682 companies
in the Software industry
Industry Median: 4.72 vs SYKKF: 20.47

Soliton Systems KK  (OTCPK:SYKKF) ROE % Explanation

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:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=22.652/84.419
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(22.652 / 150.288)*(150.288 / 164.529)*(164.529 / 84.419)
=Net Margin %*Asset Turnover*Equity Multiplier
=15.07 %*0.9134*1.949
=ROA %*Equity Multiplier
=13.76 %*1.949
=26.83 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=22.652/84.419
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (22.652 / 28.296) * (28.296 / 25.168) * (25.168 / 150.288) * (150.288 / 164.529) * (164.529 / 84.419)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8005 * 1.1243 * 16.75 % * 0.9134 * 1.949
=26.83 %

Note: The net income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) 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.


Soliton Systems KK ROE % Related Terms


Soliton Systems KK ROE % Historical Data

* Premium members only.

The historical data trend for Soliton Systems KK's ROE % 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.

Soliton Systems KK ROE % Chart

Soliton Systems KK Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.18 16.17 18.13 14.29 17.89

Soliton Systems KK Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % 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 13.42 5.98 27.07 26.83 20.38

SYKKF vs MSFT, ORCL, PLTR: ROE % Comparison

For the Software - Infrastructure subindustry, Soliton Systems KK'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.


Soliton Systems KK ROE % vs Software Industry

For the Software industry and Technology sector, Soliton Systems KK's ROE % distribution charts can be found below:

* The bar in red indicates where Soliton Systems KK's ROE % falls into.


SYKKF
74GF Score
Soliton Systems KK SYKKF
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Soliton Systems KK ROE % Calculation

Soliton Systems KK's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=14.739/( (79.785+84.963)/ 2 )
=14.739/82.374
=17.89 %

Soliton Systems KK's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=22.652/( (83.875+84.963)/ 2 )
=22.652/84.419
=26.83 %

* 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 (Dec. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 26.83% mean?
Soliton Systems KK (SYKKF) has a ROE % of 26.83% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Soliton Systems KK and its competitors. This is 61% above median its historical median of 16.66. Over the past decade, Soliton Systems KK's ROE % has ranged from 5.38 to 24.20. According to the industry distribution chart, Soliton Systems KK ranks #468 out of 2682 companies in the Software industry, placing it in the top 17.4%.
Is Soliton Systems KK's ROE % too high?
Soliton Systems KK's current ROE % of 26.83% is 61% above median its 10-year median of 16.66. Over the past 10 years, this metric has ranged from a low of 5.38 to a high of 24.20. The Software industry median ROE % is 4.72. Soliton Systems KK's value of 26.83% is 468.4% above this industry median. Based on the distribution chart, Soliton Systems KK ranks #468 out of 2682 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Soliton Systems KK has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Soliton Systems KK's ROE % compare to MSFT and ORCL?
According to the Software industry distribution chart, Soliton Systems KK ranks #468 out of 2682 companies for ROE %. This places Soliton Systems KK in the top 17% of its industry — outperforming the majority of peers. The industry median ROE % is 4.72. Soliton Systems KK's value of 26.83% is 468.4% above this benchmark. Historically, Soliton Systems KK's own ROE % has ranged from 5.38 to 24.20 over the past decade. While the company's 10-year median is 16.66 vs. the industry median of 4.72, Soliton Systems KK 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 ROE % for a Software company?
The median ROE % among Software companies is 4.72, based on 2,682 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. Soliton Systems KK's current ROE % of 26.83% is 468.4% 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 Soliton Systems KK and its competitors. For the Software industry, the median ROE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Soliton Systems KK's current ROE % is 26.83%, which is 61% above median its own 10-year median of 16.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Soliton Systems KK stock overvalued right now?
Soliton Systems KK (SYKKF) has a current ROE % of 26.83%. The stock's GF Value™ is $5.66, compared to a current price of $8.75 — trading 54.6% above its estimated fair value. The current ROE % is 26.83%, which is 61% above median its 10-year median of 16.66 and 468.4% above the Software industry median of 4.72. Soliton Systems KK's overall GF Score™ is 74/100 with 5 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 Soliton Systems KK (SYKKF), the current ROE % is 26.83% as of Dec. 2025. 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 Soliton Systems KK (SYKKF) Overvalued in 2026?

Based on GuruFocus' analysis, Soliton Systems KK stock appears to be overvalued. The current stock price of $8.75 is trading 54.6% above its estimated GF Value™ of $5.66.

Key valuation signals for SYKKF:

  • ROE %: 26.83% (61% above median its 10-year median of 16.66)
  • GF Value™: $5.66 vs. price of $8.75 (54.6% above fair value)
  • GF Score™: 74/100 with 5 warning signs
  • Industry Position: 468.4% above the Software median (#468 of 2682)

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


Soliton Systems KK Business Description

Other Exchanges 3040:Japan
Address 2-4-3 Shinjuku, Shinjuku-ku, Tokyo, JPN
Soliton Systems KK is engaged in IT security business, Video communication business, and Eco-device business. The IT security business involves the development and sale of products such as information leakage countermeasure, login authentication by electronic certificate, big data recording, cybersecurity measures, enterprise cloud service, and enterprise network integration. The Video communication business involves development and sales of "Smart-telecaster", a high-quality real-time image transmission system using mobile lines and Eco-device business engages in the development and sales of analog / digital mixed semiconductor devices and embedded systems.
74GF Score

Get the complete analysis for SYKKF

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

$8.75
Price
$5.66
GF Value