XNETTSE:4762 -2.41%79 ROE % is 22.73% as of Mar. 2026, which is 155% above its 10-year median of 8.93. GuruFocus rates TSE:4762 with a GF Score™ of 79/100 and a GF Value™ of 円2,252.53 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,678 Software companies, XNET ranks better than 79.13% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. XNET's annualized net income for the quarter that ended in Mar. 2026 was 円713 Mil. XNET's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円3,136 Mil. Therefore, XNET's annualized ROE % for the quarter that ended in Mar. 2026 was 22.73%.
The historical rank and industry rank for XNET's ROE % or its related term are showing as below:
TSE:4762'
s ROE % Range Over the Past 10 Years
Min: 7.66 Med: 8.93 Max: 17.71
Current: 17.71
During the past 13 years, XNET's highest ROE % was 17.71%. The lowest was 7.66%. And the median was 8.93%.
TSE:4762's ROE % is ranked better than 79.13% of 2678
companies
in the Software industry
Industry Median: 4.685
vs TSE:4762: 17.71
XNET (TSE:4762) 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.
XNET ROE % Related Terms
XNET ROE % Historical Data
* Premium members only.
The historical data trend for XNET'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, XNET'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.
XNET ROE % vs Software Industry
For the Software industry and Technology sector, XNET's ROE % distribution charts can be found below:
* The bar in red indicates where XNET'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.
XNET (TSE:4762) has a ROE % of 22.73% 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 XNET and its competitors. This is 155% above median its historical median of 8.93. Over the past decade, XNET's ROE % has ranged from 7.66 to 17.71. According to the industry distribution chart, XNET ranks #559 out of 2678 companies in the Software industry, placing it in the top 20.9%.
Is XNET's ROE % too high?
XNET's current ROE % of 22.73% is 155% above median its 10-year median of 8.93. Over the past 10 years, this metric has ranged from a low of 7.66 to a high of 17.71. The Software industry median ROE % is 4.69. XNET's value of 22.73% is 385.2% above this industry median. Based on the distribution chart, XNET ranks #559 out of 2678 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, XNET has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does XNET's ROE % compare to UBER and SHOP?
According to the Software industry distribution chart, XNET ranks #559 out of 2678 companies for ROE %. This places XNET in the top 21% of its industry — outperforming the majority of peers. The industry median ROE % is 4.69. XNET's value of 22.73% is 385.2% above this benchmark. Historically, XNET's own ROE % has ranged from 7.66 to 17.71 over the past decade. While the company's 10-year median is 8.93 vs. the industry median of 4.69, XNET 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. XNET's current ROE % of 22.73% is 385.2% 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 XNET 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. XNET's current ROE % is 22.73%, which is 155% above median its own 10-year median of 8.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XNET stock overvalued right now?
Based on GuruFocus' analysis, XNET (TSE:4762) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,252.53, compared to a current price of 円1,663.00 — trading 26.2% below its estimated fair value. The current ROE % is 22.73%, which is 155% above median its 10-year median of 8.93 and 385.2% above the Software industry median of 4.69. XNET's overall GF Score™ is 79/100 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 XNET (TSE:4762), the current ROE % is 22.73% 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 XNET (TSE:4762) Overvalued in 2026?
Based on GuruFocus' analysis, XNET stock appears to be undervalued.
The current stock price of 円1,663.00 is trading 26.2% below its estimated GF Value™ of 円2,252.53.
GuruFocus considers XNET to be Modestly Undervalued.
Key valuation signals for TSE:4762:
ROE %: 22.73% (155% above median its 10-year median of 8.93)
GF Value™: 円2,252.53 vs. price of 円1,663.00 (26.2% below fair value)
Industry Position: 385.2% above the Software median (#559 of 2678)
No single metric tells the full story. See the TSE:4762 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
XNET Corp is a Japan-based company engages in the provision of software applications outsourcing services. It offers its software application in the field of insurance companies, banks, general business and asset management companies. It also offers solutions for proxy/engagement management, market information services, reports management, IFRS data management, STP solutions with brokers and custodians, as well as business process outsourcing services.
79GF Score
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