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Nova System CoTSE:5257 +0.04%79 ROE % is 13.40% as of Dec. 2025, which is 28% below its 10-year median of 18.52. GuruFocus rates TSE:5257 with a GF Score™ of 79/100 and a GF Value™ of 円3,154.39 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,683 Software companies, Nova System Co ranks better than 62.91% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Nova System Co's annualized net income for the quarter that ended in Dec. 2025 was 円329 Mil. Nova System Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was 円2,454 Mil. Therefore, Nova System Co's annualized ROE % for the quarter that ended in Dec. 2025 was 13.40%.
The historical rank and industry rank for Nova System Co's ROE % or its related term are showing as below:
TSE:5257'
s ROE % Range Over the Past 10 Years
Min: 8.33 Med: 18.52 Max: 23.12
Current: 9.83
During the past 6 years, Nova System Co's highest ROE % was 23.12%. The lowest was 8.33%. And the median was 18.52%.
TSE:5257's ROE % is ranked better than 62.91% of 2683
companies
in the Software industry
Industry Median: 4.73
vs TSE:5257: 9.83
Nova System Co (TSE:5257) 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 (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (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.
Nova System Co ROE % Related Terms
Nova System Co ROE % Historical Data
* Premium members only.
The historical data trend for Nova System 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 - Application subindustry, Nova System 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.
Nova System Co ROE % vs Software Industry
For the Software industry and Technology sector, Nova System Co's ROE % distribution charts can be found below:
* The bar in red indicates where Nova System 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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Nova System Co (TSE:5257) has a ROE % of 13.40% 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 Nova System Co and its competitors. This is 28% below median its historical median of 18.52. Over the past decade, Nova System Co's ROE % has ranged from 8.33 to 23.12. According to the industry distribution chart, Nova System Co ranks #995 out of 2683 companies in the Software industry, placing it in the top 37.1%.
Is Nova System Co's ROE % too high?
Nova System Co's current ROE % of 13.40% is 28% below median its 10-year median of 18.52. Over the past 10 years, this metric has ranged from a low of 8.33 to a high of 23.12. The Software industry median ROE % is 4.73. Nova System Co's value of 13.40% is 183.3% above this industry median. Based on the distribution chart, Nova System Co ranks #995 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, Nova System Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nova System Co's ROE % compare to UBER and SHOP?
According to the Software industry distribution chart, Nova System Co ranks #995 out of 2683 companies for ROE %. This puts Nova System Co in the upper half of its industry. The industry median ROE % is 4.73. Nova System Co's value of 13.40% is 183.3% above this benchmark. Historically, Nova System Co's own ROE % has ranged from 8.33 to 23.12 over the past decade. While the company's 10-year median is 18.52 vs. the industry median of 4.73, Nova System 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 4.73, based on 2,683 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. Nova System Co's current ROE % of 13.40% is 183.3% 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 Nova System Co and its competitors. For the Software industry, the median ROE % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nova System Co's current ROE % is 13.40%, which is 28% below median its own 10-year median of 18.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nova System Co stock overvalued right now?
Based on GuruFocus' analysis, Nova System Co (TSE:5257) is currently considered Modestly Undervalued. The stock's GF Value™ is 円3,154.39, compared to a current price of 円2,501.00 — trading 20.7% below its estimated fair value. The current ROE % is 13.40%, which is 28% below median its 10-year median of 18.52 and 183.3% above the Software industry median of 4.73. Nova System Co's overall GF Score™ is 79/100 with 2 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 Nova System Co (TSE:5257), the current ROE % is 13.40% 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 Nova System Co (TSE:5257) Overvalued in 2026?
Based on GuruFocus' analysis, Nova System Co stock appears to be undervalued.
The current stock price of 円2,501.00 is trading 20.7% below its estimated GF Value™ of 円3,154.39.
GuruFocus considers Nova System Co to be Modestly Undervalued.
Key valuation signals for TSE:5257:
ROE %: 13.40% (28% below median its 10-year median of 18.52)
GF Value™: 円3,154.39 vs. price of 円2,501.00 (20.7% below fair value)
Industry Position: 183.3% above the Software median (#995 of 2683)
No single metric tells the full story. See the TSE:5257 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nova System Co Ltd is involved in the system integration business mainly for the financial and insurance industry, medical care and cloud service business. The Company's business is a single segment of software development business, and the services it provides are system integration and cloud services.
79GF Score
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