The Why How Do Co (TSE:3823) ROE %: -73.58% (As of Feb. 2026)


TSE:3823 The Why How Do Co Inc TSE:3823
44 GF Score
Price 円30.00
GF Value 円59.35
Valuation Possible Value Trap
! 4 Warning Signs
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What is The Why How Do Co ROE %?

The Why How Do Co TSE:3823 +7.14% 44 ROE % is -73.58% as of Feb. 2026. GuruFocus rates TSE:3823 with a GF Score™ of 44/100 and a GF Value™ of 円59.35 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,678 Software companies, The Why How Do Co ranks worse than 85.18% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. The Why How Do Co's annualized net income for the quarter that ended in Feb. 2026 was 円-1,080 Mil. The Why How Do Co's average Total Stockholders Equity over the quarter that ended in Feb. 2026 was 円1,467 Mil. Therefore, The Why How Do Co's annualized ROE % for the quarter that ended in Feb. 2026 was -73.58%.

The historical rank and industry rank for The Why How Do Co's ROE % or its related term are showing as below:

TSE:3823' s ROE % Range Over the Past 10 Years
Min: -278.94   Med: -55.65   Max: 0.79
Current: -37.16

During the past 13 years, The Why How Do Co's highest ROE % was 0.79%. The lowest was -278.94%. And the median was -55.65%.

TSE:3823's ROE % is ranked worse than
85.18% of 2678 companies
in the Software industry
Industry Median: 4.685 vs TSE:3823: -37.16

The Why How Do Co  (TSE:3823) 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: Feb. 2026 )
=Net Income/Total Stockholders Equity
=-1079.728/1467.342
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1079.728 / 3398.064)*(3398.064 / 2909.152)*(2909.152 / 1467.342)
=Net Margin %*Asset Turnover*Equity Multiplier
=-31.77 %*1.1681*1.9826
=ROA %*Equity Multiplier
=-37.11 %*1.9826
=-73.58 %

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: Feb. 2026 )
=Net Income/Total Stockholders Equity
=-1079.728/1467.342
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-1079.728 / -976.636) * (-976.636 / -365.076) * (-365.076 / 3398.064) * (3398.064 / 2909.152) * (2909.152 / 1467.342)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.1056 * 2.6752 * -10.74 % * 1.1681 * 1.9826
=-73.58 %

Note: The net income data used here is two times the semi-annual (Feb. 2026) net income data. The Revenue data used here is two times the semi-annual (Feb. 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.


The Why How Do Co ROE % Related Terms


The Why How Do Co ROE % Historical Data

* Premium members only.

The historical data trend for The Why How Do 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.

The Why How Do Co ROE % Chart

The Why How Do Co Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -67.57 -43.72 -37.46 -126.65 -5.98

The Why How Do Co Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
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 -41.00 -183.21 -12.66 0.01 -73.58

TSE:3823 vs UBER, SHOP, CRM: ROE % Comparison

For the Software - Application subindustry, The Why How Do 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.


The Why How Do Co ROE % vs Software Industry

For the Software industry and Technology sector, The Why How Do Co's ROE % distribution charts can be found below:

* The bar in red indicates where The Why How Do Co's ROE % falls into.


TSE:3823
44GF Score
The Why How Do Co Inc TSE:3823
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

The Why How Do Co ROE % Calculation

The Why How Do Co's annualized ROE % for the fiscal year that ended in Aug. 2025 is calculated as

ROE %=Net Income (A: Aug. 2025 )/( (Total Stockholders Equity (A: Aug. 2024 )+Total Stockholders Equity (A: Aug. 2025 ))/ count )
=-69.043/( (759.999+1548.274)/ 2 )
=-69.043/1154.1365
=-5.98 %

The Why How Do Co's annualized ROE % for the quarter that ended in Feb. 2026 is calculated as

ROE %=Net Income (Q: Feb. 2026 )/( (Total Stockholders Equity (Q: Aug. 2025 )+Total Stockholders Equity (Q: Feb. 2026 ))/ count )
=-1079.728/( (1548.274+1386.41)/ 2 )
=-1079.728/1467.342
=-73.58 %

* 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 (Feb. 2026) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -73.58% mean?
The Why How Do Co (TSE:3823) has a ROE % of -73.58% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The Why How Do Co and its competitors. According to the industry distribution chart, The Why How Do Co ranks #2281 out of 2678 companies in the Software industry, placing it in the top 85.2%.
Is The Why How Do Co's ROE % too high?
The Why How Do Co's current ROE % is -73.58%. Based on the distribution chart, The Why How Do Co ranks #2281 out of 2678 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, The Why How Do Co has a GF Score™ of 44/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does The Why How Do Co's ROE % compare to UBER and SHOP?
According to the Software industry distribution chart, The Why How Do Co ranks #2281 out of 2678 companies for ROE %. This places The Why How Do Co in the lower half of its industry. The industry median ROE % is 4.69. 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. 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 The Why How Do Co 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. The Why How Do Co's current ROE % is -73.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Why How Do Co stock overvalued right now?
Based on GuruFocus' analysis, The Why How Do Co (TSE:3823) is currently considered Possible Value Trap. The stock's GF Value™ is 円59.35, compared to a current price of 円30.00 — trading 49.5% below its estimated fair value. The current ROE % is -73.58%. The Why How Do Co's overall GF Score™ is 44/100 with 4 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 The Why How Do Co (TSE:3823), the current ROE % is -73.58% as of Feb. 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 The Why How Do Co (TSE:3823) Overvalued in 2026?

Based on GuruFocus' analysis, The Why How Do Co stock appears to be undervalued. The current stock price of 円30.00 is trading 49.5% below its estimated GF Value™ of 円59.35. GuruFocus considers The Why How Do Co to be Possible Value Trap.

Key valuation signals for TSE:3823:

  • ROE %: -73.58%
  • GF Value™: 円59.35 vs. price of 円30.00 (49.5% below fair value)
  • GF Score™: 44/100 with 4 warning signs

No single metric tells the full story. See the TSE:3823 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


The Why How Do Co Business Description

Address 22 Aizumi-cho, Daisan Yamada Building, Shinjuku-ku, Tokyo, JPN, 160-0005
The Why How Do Co Inc formerly Acrodea Inc is a software company. It is mainly engaged in the development of platform services for smartphones and IoT related solutions. In addition, the company provides social game and application related development and services.
44GF Score

Get the complete analysis for TSE:3823

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

円30.00
Price
円59.35
GF Value