SYSTEMS DESIGN CoTSE:3766 +1.79%71 ROE % is 11.10% as of Mar. 2026, which is 101% above its 10-year median of 5.51. GuruFocus rates TSE:3766 with a GF Score™ of 71/100 and a GF Value™ of 円1,043.89 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,683 Software companies, SYSTEMS DESIGN Co ranks better than 59.49% on this metric.
The historical rank and industry rank for SYSTEMS DESIGN Co's ROE % or its related term are showing as below:
TSE:3766'
s ROE % Range Over the Past 10 Years
Min: -7.36 Med: 5.51 Max: 9.44
Current: 8.4
During the past 13 years, SYSTEMS DESIGN Co's highest ROE % was 9.44%. The lowest was -7.36%. And the median was 5.51%.
TSE:3766's ROE % is ranked better than 59.49% of 2683
companies
in the Software industry
Industry Median: 4.73
vs TSE:3766: 8.40
SYSTEMS DESIGN Co (TSE:3766) 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:
Note:
The net income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
SYSTEMS DESIGN Co ROE % Related Terms
SYSTEMS DESIGN Co ROE % Historical Data
* Premium members only.
The historical data trend for SYSTEMS DESIGN Co'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.
For the Information Technology Services subindustry, SYSTEMS DESIGN Co'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.
SYSTEMS DESIGN Co ROE % vs Software Industry
For the Software industry and Technology sector, SYSTEMS DESIGN Co's ROE % distribution charts can be found below:
* The bar in red indicates where SYSTEMS DESIGN Co'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 two times the semi-annual (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
SYSTEMS DESIGN Co (TSE:3766) has a ROE % of 11.10% 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 SYSTEMS DESIGN Co and its competitors. This is 101% above median its historical median of 5.51. According to the industry distribution chart, SYSTEMS DESIGN Co ranks #1087 out of 2683 companies in the Software industry, placing it in the top 40.5%.
Is SYSTEMS DESIGN Co's ROE % too high?
SYSTEMS DESIGN Co's current ROE % of 11.10% is 101% above median its 10-year median of 5.51. The Software industry median ROE % is 4.73. SYSTEMS DESIGN Co's value of 11.10% is 134.7% above this industry median. Based on the distribution chart, SYSTEMS DESIGN Co ranks #1087 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, SYSTEMS DESIGN Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SYSTEMS DESIGN Co's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, SYSTEMS DESIGN Co ranks #1087 out of 2683 companies for ROE %. This puts SYSTEMS DESIGN Co in the upper half of its industry. The industry median ROE % is 4.73. SYSTEMS DESIGN Co's value of 11.10% is 134.7% above this benchmark. While the company's 10-year median is 5.51 vs. the industry median of 4.73, SYSTEMS DESIGN Co 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 4.73, based on 2,683 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. SYSTEMS DESIGN Co's current ROE % of 11.10% is 134.7% 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 SYSTEMS DESIGN Co and its competitors. For the Software industry, the median ROE % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SYSTEMS DESIGN Co's current ROE % is 11.10%, which is 101% above median its own 10-year median of 5.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SYSTEMS DESIGN Co stock overvalued right now?
Based on GuruFocus' analysis, SYSTEMS DESIGN Co (TSE:3766) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,043.89, compared to a current price of 円1,419.00 — trading 35.9% above its estimated fair value. The current ROE % is 11.10%, which is 101% above median its 10-year median of 5.51 and 134.7% above the Software industry median of 4.73. SYSTEMS DESIGN Co's overall GF Score™ is 71/100 with 3 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 SYSTEMS DESIGN Co (TSE:3766), the current ROE % is 11.10% 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 SYSTEMS DESIGN Co (TSE:3766) Overvalued in 2026?
Based on GuruFocus' analysis, SYSTEMS DESIGN Co stock appears to be overvalued.
The current stock price of 円1,419.00 is trading 35.9% above its estimated GF Value™ of 円1,043.89.
GuruFocus considers SYSTEMS DESIGN Co to be Significantly Overvalued.
Key valuation signals for TSE:3766:
ROE %: 11.10% (101% above median its 10-year median of 5.51)
GF Value™: 円1,043.89 vs. price of 円1,419.00 (35.9% above fair value)
Industry Position: 134.7% above the Software median (#1087 of 2683)
No single metric tells the full story. See the TSE:3766 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SYSTEMS DESIGN Co Ltd is an information technology service provider in Japan. The business of the company includes system development, integration, outsourcing business, system operation, data solution, and product service. The services offered by the company include quality control system, accounting system, a repair service system, and a dealer management system.
71GF Score
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