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Tokai Soft CoTSE:4430 -0.30%85 ROE % is 13.73% as of Feb. 2026, which is 2% above its 10-year median of 13.42. GuruFocus rates TSE:4430 with a GF Score™ of 85/100 and a GF Value™ of 円1,975.09 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,688 Software companies, Tokai Soft Co ranks better than 65.81% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Tokai Soft Co's annualized net income for the quarter that ended in Feb. 2026 was 円888 Mil. Tokai Soft Co's average Total Stockholders Equity over the quarter that ended in Feb. 2026 was 円6,470 Mil. Therefore, Tokai Soft Co's annualized ROE % for the quarter that ended in Feb. 2026 was 13.73%.
The historical rank and industry rank for Tokai Soft Co's ROE % or its related term are showing as below:
TSE:4430'
s ROE % Range Over the Past 10 Years
Min: 11.1 Med: 13.42 Max: 15.49
Current: 11.1
During the past 10 years, Tokai Soft Co's highest ROE % was 15.49%. The lowest was 11.10%. And the median was 13.42%.
TSE:4430's ROE % is ranked better than 65.81% of 2688
companies
in the Software industry
Industry Median: 4.79
vs TSE:4430: 11.10
Tokai Soft Co (TSE:4430) 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 four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (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.
Tokai Soft Co ROE % Related Terms
Tokai Soft Co ROE % Historical Data
* Premium members only.
The historical data trend for Tokai Soft 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, Tokai Soft 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.
Tokai Soft Co ROE % vs Software Industry
For the Software industry and Technology sector, Tokai Soft Co's ROE % distribution charts can be found below:
* The bar in red indicates where Tokai Soft 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 four times the quarterly (Feb. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Tokai Soft Co (TSE:4430) has a ROE % of 13.73% 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 Tokai Soft Co and its competitors. This is near median its historical median of 13.42. Over the past decade, Tokai Soft Co's ROE % has ranged from 11.10 to 15.49. According to the industry distribution chart, Tokai Soft Co ranks #919 out of 2688 companies in the Software industry, placing it in the top 34.2%.
Is Tokai Soft Co's ROE % too high?
Tokai Soft Co's current ROE % of 13.73% is near median its 10-year median of 13.42. Over the past 10 years, this metric has ranged from a low of 11.10 to a high of 15.49. The Software industry median ROE % is 4.79. Tokai Soft Co's value of 13.73% is 186.6% above this industry median. Based on the distribution chart, Tokai Soft Co ranks #919 out of 2688 companies in the Software industry, which is above the industry midpoint. Overall, Tokai Soft Co has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tokai Soft Co's ROE % compare to MSFT and ORCL?
According to the Software industry distribution chart, Tokai Soft Co ranks #919 out of 2688 companies for ROE %. This puts Tokai Soft Co in the upper half of its industry. The industry median ROE % is 4.79. Tokai Soft Co's value of 13.73% is 186.6% above this benchmark. Historically, Tokai Soft Co's own ROE % has ranged from 11.10 to 15.49 over the past decade. While the company's 10-year median is 13.42 vs. the industry median of 4.79, Tokai Soft 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 4.79, based on 2,688 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. Tokai Soft Co's current ROE % of 13.73% is 186.6% 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 Tokai Soft Co and its competitors. For the Software industry, the median ROE % is 4.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokai Soft Co's current ROE % is 13.73%, which is near median its own 10-year median of 13.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Soft Co stock overvalued right now?
Based on GuruFocus' analysis, Tokai Soft Co (TSE:4430) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,975.09, compared to a current price of 円1,655.00 — trading 16.2% below its estimated fair value. The current ROE % is 13.73%, which is near median its 10-year median of 13.42 and 186.6% above the Software industry median of 4.79. Tokai Soft Co's overall GF Score™ is 85/100 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 Tokai Soft Co (TSE:4430), the current ROE % is 13.73% 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 Tokai Soft Co (TSE:4430) Overvalued in 2026?
Based on GuruFocus' analysis, Tokai Soft Co stock appears to be undervalued.
The current stock price of 円1,655.00 is trading 16.2% below its estimated GF Value™ of 円1,975.09.
GuruFocus considers Tokai Soft Co to be Modestly Undervalued.
Key valuation signals for TSE:4430:
ROE %: 13.73% (near median its 10-year median of 13.42)
GF Value™: 円1,975.09 vs. price of 円1,655.00 (16.2% below fair value)
Industry Position: 186.6% above the Software median (#919 of 2688)
No single metric tells the full story. See the TSE:4430 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokai Soft Co Ltd provides software solutions. The company is engaged in a wide range of businesses as an engineering company that combines technologies for total system construction, network and solution solutions, and support technologies that provide stable operation.
85GF Score
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