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The historical rank and industry rank for AR Advanced Technology's ROE % or its related term are showing as below:
TSE:5578'
s ROE % Range Over the Past 10 Years
Min: 14.84 Med: 22.35 Max: 41.2
Current: 32.76
During the past 5 years, AR Advanced Technology's highest ROE % was 41.20%. The lowest was 14.84%. And the median was 22.35%.
TSE:5578's ROE % is ranked better than 91.35% of 2683
companies
in the Software industry
Industry Median: 4.73
vs TSE:5578: 32.76
AR Advanced Technology (TSE:5578) 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 (Feb. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
* 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 Information Technology Services subindustry, AR Advanced Technology'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.
AR Advanced Technology ROE % vs Software Industry
For the Software industry and Technology sector, AR Advanced Technology's ROE % distribution charts can be found below:
* The bar in red indicates where AR Advanced Technology'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 (Feb. 2026) net income data.
ROE % is displayed in the 30-year financial page.
AR Advanced Technology (TSE:5578) has a ROE % of 28.61% 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 AR Advanced Technology and its competitors. This is 28% above median its historical median of 22.35. Over the past decade, AR Advanced Technology's ROE % has ranged from 14.84 to 41.20. According to the industry distribution chart, AR Advanced Technology ranks #232 out of 2683 companies in the Software industry, placing it in the top 8.6%.
Is AR Advanced Technology's ROE % too high?
AR Advanced Technology's current ROE % of 28.61% is 28% above median its 10-year median of 22.35. Over the past 10 years, this metric has ranged from a low of 14.84 to a high of 41.20. The Software industry median ROE % is 4.73. AR Advanced Technology's value of 28.61% is 504.9% above this industry median. Based on the distribution chart, AR Advanced Technology ranks #232 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, AR Advanced Technology has a GF Score™ of 62/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AR Advanced Technology's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, AR Advanced Technology ranks #232 out of 2683 companies for ROE %. This places AR Advanced Technology in the top 9% of its industry — outperforming the majority of peers. The industry median ROE % is 4.73. AR Advanced Technology's value of 28.61% is 504.9% above this benchmark. Historically, AR Advanced Technology's own ROE % has ranged from 14.84 to 41.20 over the past decade. While the company's 10-year median is 22.35 vs. the industry median of 4.73, AR Advanced Technology 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. AR Advanced Technology's current ROE % of 28.61% is 504.9% 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 AR Advanced Technology 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. AR Advanced Technology's current ROE % is 28.61%, which is 28% above median its own 10-year median of 22.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AR Advanced Technology stock overvalued right now?
Based on GuruFocus' analysis, AR Advanced Technology (TSE:5578) is currently considered Fairly Valued. The stock's GF Value™ is 円1,040.45, compared to a current price of 円1,017.00 — trading 2.3% below its estimated fair value. The current ROE % is 28.61%, which is 28% above median its 10-year median of 22.35 and 504.9% above the Software industry median of 4.73. AR Advanced Technology's overall GF Score™ is 62/100 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 AR Advanced Technology (TSE:5578), the current ROE % is 28.61% 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 AR Advanced Technology (TSE:5578) Overvalued in 2026?
Based on GuruFocus' analysis, AR Advanced Technology stock appears to be undervalued.
The current stock price of 円1,017.00 is trading 2.3% below its estimated GF Value™ of 円1,040.45.
GuruFocus considers AR Advanced Technology to be Fairly Valued.
Key valuation signals for TSE:5578:
ROE %: 28.61% (28% above median its 10-year median of 22.35)
GF Value™: 円1,040.45 vs. price of 円1,017.00 (2.3% below fair value)
Industry Position: 504.9% above the Software median (#232 of 2683)
No single metric tells the full story. See the TSE:5578 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AR Advanced Technology Inc is engaged in the DX solution business utilizing cloud technology, data analysis, and AI. It provides a comprehensive service that goes beyond simple system introduction. Its products and services include Loogue faq, an AI chatbot that is specialized in employee inquiries; Zidoma data which may be useful to reduce fileserver operating costs; and Mieta a cloud contact center analysis management service.
62GF Score
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