Flect CoTSE:4414 +1.48%76 ROE % is 33.25% as of Mar. 2026, which is 33% above its 10-year median of 25.04. GuruFocus rates TSE:4414 with a GF Score™ of 76/100 and a GF Value™ of 円2,839.16 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,678 Software companies, Flect Co ranks better than 87.38% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Flect Co's annualized net income for the quarter that ended in Mar. 2026 was 円868 Mil. Flect Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円2,610 Mil. Therefore, Flect Co's annualized ROE % for the quarter that ended in Mar. 2026 was 33.25%.
The historical rank and industry rank for Flect Co's ROE % or its related term are showing as below:
TSE:4414'
s ROE % Range Over the Past 10 Years
Min: -57.25 Med: 25.04 Max: 34.71
Current: 25.84
During the past 7 years, Flect Co's highest ROE % was 34.71%. The lowest was -57.25%. And the median was 25.04%.
TSE:4414's ROE % is ranked better than 87.38% of 2678
companies
in the Software industry
Industry Median: 4.685
vs TSE:4414: 25.84
Flect Co (TSE:4414) 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.
Flect Co ROE % Related Terms
Flect Co ROE % Historical Data
* Premium members only.
The historical data trend for Flect 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 Software - Infrastructure subindustry, Flect 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.
Flect Co ROE % vs Software Industry
For the Software industry and Technology sector, Flect Co's ROE % distribution charts can be found below:
* The bar in red indicates where Flect 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.
Flect Co (TSE:4414) has a ROE % of 33.25% 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 Flect Co and its competitors. This is 33% above median its historical median of 25.04. According to the industry distribution chart, Flect Co ranks #338 out of 2678 companies in the Software industry, placing it in the top 12.6%.
Is Flect Co's ROE % too high?
Flect Co's current ROE % of 33.25% is 33% above median its 10-year median of 25.04. The Software industry median ROE % is 4.69. Flect Co's value of 33.25% is 609.7% above this industry median. Based on the distribution chart, Flect Co ranks #338 out of 2678 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Flect Co has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Flect Co's ROE % compare to MSFT and ORCL?
According to the Software industry distribution chart, Flect Co ranks #338 out of 2678 companies for ROE %. This places Flect Co in the top 13% of its industry — outperforming the majority of peers. The industry median ROE % is 4.69. Flect Co's value of 33.25% is 609.7% above this benchmark. While the company's 10-year median is 25.04 vs. the industry median of 4.69, Flect 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 4.69, 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. Flect Co's current ROE % of 33.25% is 609.7% 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 Flect 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. Flect Co's current ROE % is 33.25%, which is 33% above median its own 10-year median of 25.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Flect Co stock overvalued right now?
Based on GuruFocus' analysis, Flect Co (TSE:4414) is currently considered Significantly Undervalued. The stock's GF Value™ is 円2,839.16, compared to a current price of 円1,030.00 — trading 63.7% below its estimated fair value. The current ROE % is 33.25%, which is 33% above median its 10-year median of 25.04 and 609.7% above the Software industry median of 4.69. Flect Co's overall GF Score™ is 76/100 with 1 warning sign 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 Flect Co (TSE:4414), the current ROE % is 33.25% 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 Flect Co (TSE:4414) Overvalued in 2026?
Based on GuruFocus' analysis, Flect Co stock appears to be undervalued.
The current stock price of 円1,030.00 is trading 63.7% below its estimated GF Value™ of 円2,839.16.
GuruFocus considers Flect Co to be Significantly Undervalued.
Key valuation signals for TSE:4414:
ROE %: 33.25% (33% above median its 10-year median of 25.04)
GF Value™: 円2,839.16 vs. price of 円1,030.00 (63.7% below fair value)
Industry Position: 609.7% above the Software median (#338 of 2678)
No single metric tells the full story. See the TSE:4414 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Flect Co Ltd is a multi-cloud integrator that supports companies' digital transformation (DX) with cloud technology and design. The company provides a range of digital solutions for domestic businesses, including IoT, mobility, and AI services across multiple cloud platforms. It also offers e-commerce systems for both corporate clients (B2B) and customer-facing retail (B2C), along with community platforms to enhance customer engagement. Additionally, it supports API, ID, and data integration through its unified platforms. It operates in a single segment, the cloud solutions business.
76GF Score
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