System DTSE:3804 +3.40%76 ROE % is 15.97% as of Apr. 2026, which is 9% above its 10-year median of 14.68. GuruFocus rates TSE:3804 with a GF Score™ of 76/100 and a GF Value™ of 円549.80 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,678 Software companies, System D ranks better than 67.1% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. System D's annualized net income for the quarter that ended in Apr. 2026 was 円820 Mil. System D's average Total Stockholders Equity over the quarter that ended in Apr. 2026 was 円5,138 Mil. Therefore, System D's annualized ROE % for the quarter that ended in Apr. 2026 was 15.97%.
The historical rank and industry rank for System D's ROE % or its related term are showing as below:
TSE:3804'
s ROE % Range Over the Past 10 Years
Min: 7.92 Med: 14.68 Max: 18.86
Current: 11.76
During the past 13 years, System D's highest ROE % was 18.86%. The lowest was 7.92%. And the median was 14.68%.
TSE:3804's ROE % is ranked better than 67.1% of 2678
companies
in the Software industry
Industry Median: 4.685
vs TSE:3804: 11.76
System D (TSE:3804) 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 (Apr. 2026) net income data. The Revenue data used here is two times the semi-annual (Apr. 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.
System D ROE % Related Terms
System D ROE % Historical Data
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The historical data trend for System D'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 Software - Application subindustry, System D'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.
System D ROE % vs Software Industry
For the Software industry and Technology sector, System D's ROE % distribution charts can be found below:
* The bar in red indicates where System D'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 (Apr. 2026) net income data.
ROE % is displayed in the 30-year financial page.
System D (TSE:3804) has a ROE % of 15.97% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on System D and its competitors. This is near median its historical median of 14.68. Over the past decade, System D's ROE % has ranged from 7.92 to 18.86. According to the industry distribution chart, System D ranks #881 out of 2678 companies in the Software industry, placing it in the top 32.9%.
Is System D's ROE % too high?
System D's current ROE % of 15.97% is near median its 10-year median of 14.68. Over the past 10 years, this metric has ranged from a low of 7.92 to a high of 18.86. The Software industry median ROE % is 4.69. System D's value of 15.97% is 240.9% above this industry median. Based on the distribution chart, System D ranks #881 out of 2678 companies in the Software industry, which is above the industry midpoint. Overall, System D has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does System D's ROE % compare to UBER and SHOP?
According to the Software industry distribution chart, System D ranks #881 out of 2678 companies for ROE %. This puts System D in the upper half of its industry. The industry median ROE % is 4.69. System D's value of 15.97% is 240.9% above this benchmark. Historically, System D's own ROE % has ranged from 7.92 to 18.86 over the past decade. While the company's 10-year median is 14.68 vs. the industry median of 4.69, System D 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 4.69, based on 2,678 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. System D's current ROE % of 15.97% is 240.9% 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 System D 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. System D's current ROE % is 15.97%, which is near median its own 10-year median of 14.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is System D stock overvalued right now?
Based on GuruFocus' analysis, System D (TSE:3804) is currently considered Modestly Undervalued. The stock's GF Value™ is 円549.80, compared to a current price of 円426.00 — trading 22.5% below its estimated fair value. The current ROE % is 15.97%, which is near median its 10-year median of 14.68 and 240.9% above the Software industry median of 4.69. System D's overall GF Score™ is 76/100 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 System D (TSE:3804), the current ROE % is 15.97% as of Apr. 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 System D (TSE:3804) Overvalued in 2026?
Based on GuruFocus' analysis, System D stock appears to be undervalued.
The current stock price of 円426.00 is trading 22.5% below its estimated GF Value™ of 円549.80.
GuruFocus considers System D to be Modestly Undervalued.
Key valuation signals for TSE:3804:
ROE %: 15.97% (near median its 10-year median of 14.68)
GF Value™: 円549.80 vs. price of 円426.00 (22.5% below fair value)
Industry Position: 240.9% above the Software median (#881 of 2678)
No single metric tells the full story. See the TSE:3804 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
System D Inc creates industry-specialized package software. The software development serves the schools, fitness clubs, distributors and other institutions. Its products and services include: Campus Plan, School Engine, PPP, Public Property Management System, Common Financial Accounting System, Smart Hello/Hello EX, Smart Hello Ticket/Hello Fun, Regulations Management System, and Contract creation and management system.
76GF Score
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