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ScalaTSE:4845 +1.50%54 ROE % is 8.56% as of Dec. 2025, which is 33% below its 10-year median of 12.72. GuruFocus rates TSE:4845 with a GF Score™ of 54/100 and a GF Value™ of 円477.25 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,688 Software companies, Scala ranks better than 70.87% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Scala's annualized net income for the quarter that ended in Dec. 2025 was 円397 Mil. Scala's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was 円4,635 Mil. Therefore, Scala's annualized ROE % for the quarter that ended in Dec. 2025 was 8.56%.
The historical rank and industry rank for Scala's ROE % or its related term are showing as below:
TSE:4845'
s ROE % Range Over the Past 10 Years
Min: -47.46 Med: 12.72 Max: 60.39
Current: 14.22
During the past 13 years, Scala's highest ROE % was 60.39%. The lowest was -47.46%. And the median was 12.72%.
TSE:4845's ROE % is ranked better than 70.87% of 2688
companies
in the Software industry
Industry Median: 4.855
vs TSE:4845: 14.22
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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) 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.
Scala ROE % Related Terms
Scala ROE % Historical Data
* Premium members only.
The historical data trend for Scala'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, Scala'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.
Scala ROE % vs Software Industry
For the Software industry and Technology sector, Scala's ROE % distribution charts can be found below:
* The bar in red indicates where Scala'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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Scala (TSE:4845) has a ROE % of 8.56% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Scala and its competitors. This is 33% below median its historical median of 12.72. According to the industry distribution chart, Scala ranks #783 out of 2688 companies in the Software industry, placing it in the top 29.1%.
Is Scala's ROE % too high?
Scala's current ROE % of 8.56% is 33% below median its 10-year median of 12.72. The Software industry median ROE % is 4.86. Scala's value of 8.56% is 76.3% above this industry median. Based on the distribution chart, Scala ranks #783 out of 2688 companies in the Software industry, which is above the industry midpoint. Overall, Scala has a GF Score™ of 54/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Scala's ROE % compare to QH and SHOP?
According to the Software industry distribution chart, Scala ranks #783 out of 2688 companies for ROE %. This puts Scala in the upper half of its industry. The industry median ROE % is 4.86. Scala's value of 8.56% is 76.3% above this benchmark. While the company's 10-year median is 12.72 vs. the industry median of 4.86, Scala 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 4.86, 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. Scala's current ROE % of 8.56% is 76.3% 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 Scala and its competitors. For the Software industry, the median ROE % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Scala's current ROE % is 8.56%, which is 33% below median its own 10-year median of 12.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Scala stock overvalued right now?
Based on GuruFocus' analysis, Scala (TSE:4845) is currently considered Modestly Undervalued. The stock's GF Value™ is 円477.25, compared to a current price of 円339.00 — trading 29% below its estimated fair value. The current ROE % is 8.56%, which is 33% below median its 10-year median of 12.72 and 76.3% above the Software industry median of 4.86. Scala's overall GF Score™ is 54/100 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 Scala (TSE:4845), the current ROE % is 8.56% as of Dec. 2025. 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 Scala (TSE:4845) Overvalued in 2026?
Based on GuruFocus' analysis, Scala stock appears to be undervalued.
The current stock price of 円339.00 is trading 29% below its estimated GF Value™ of 円477.25.
GuruFocus considers Scala to be Modestly Undervalued.
Key valuation signals for TSE:4845:
ROE %: 8.56% (33% below median its 10-year median of 12.72)
GF Value™: 円477.25 vs. price of 円339.00 (29% below fair value)
Industry Position: 76.3% above the Software median (#783 of 2688)
No single metric tells the full story. See the TSE:4845 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Scala Inc is engaged in development, sales, and maintenance of SaaS and ASP related business software products. The company offers web services that supports corporate sites and EC sites using automatic voice response technologies.
54GF Score
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