Laboro AITSE:5586 +2.75%52 ROE % is 11.37% as of Mar. 2026, which is 91% above its 10-year median of 5.94. GuruFocus rates TSE:5586 with a GF Score™ of 52/100 and a GF Value™ of 円1,521.98 (Significantly Undervalued). Among 2,677 Software companies, Laboro AI ranks better than 52.78% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Laboro AI's annualized net income for the quarter that ended in Mar. 2026 was 円299 Mil. Laboro AI's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was 円2,628 Mil. Therefore, Laboro AI's annualized ROE % for the quarter that ended in Mar. 2026 was 11.37%.
The historical rank and industry rank for Laboro AI's ROE % or its related term are showing as below:
TSE:5586'
s ROE % Range Over the Past 10 Years
Min: -5.78 Med: 5.94 Max: 29.05
Current: 5.93
During the past 5 years, Laboro AI's highest ROE % was 29.05%. The lowest was -5.78%. And the median was 5.94%.
TSE:5586's ROE % is ranked better than 52.78% of 2677
companies
in the Software industry
Industry Median: 4.73
vs TSE:5586: 5.93
Laboro AI (TSE:5586) 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.
Laboro AI ROE % Related Terms
Laboro AI ROE % Historical Data
* Premium members only.
The historical data trend for Laboro AI'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, Laboro AI'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.
Laboro AI ROE % vs Software Industry
For the Software industry and Technology sector, Laboro AI's ROE % distribution charts can be found below:
* The bar in red indicates where Laboro AI'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.
Laboro AI (TSE:5586) has a ROE % of 11.37% 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 Laboro AI and its competitors. This is 91% above median its historical median of 5.94. According to the industry distribution chart, Laboro AI ranks #1264 out of 2677 companies in the Software industry, placing it in the top 47.2%.
Is Laboro AI's ROE % too high?
Laboro AI's current ROE % of 11.37% is 91% above median its 10-year median of 5.94. The Software industry median ROE % is 4.73. Laboro AI's value of 11.37% is 140.4% above this industry median. Based on the distribution chart, Laboro AI ranks #1264 out of 2677 companies in the Software industry, which is above the industry midpoint. Overall, Laboro AI has a GF Score™ of 52/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Laboro AI's ROE % compare to MSFT and ORCL?
According to the Software industry distribution chart, Laboro AI ranks #1264 out of 2677 companies for ROE %. This puts Laboro AI in the upper half of its industry. The industry median ROE % is 4.73. Laboro AI's value of 11.37% is 140.4% above this benchmark. While the company's 10-year median is 5.94 vs. the industry median of 4.73, Laboro AI 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 2,677 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. Laboro AI's current ROE % of 11.37% is 140.4% 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 Laboro AI 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. Laboro AI's current ROE % is 11.37%, which is 91% above median its own 10-year median of 5.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laboro AI stock overvalued right now?
Based on GuruFocus' analysis, Laboro AI (TSE:5586) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,521.98, compared to a current price of 円859.00 — trading 43.6% below its estimated fair value. The current ROE % is 11.37%, which is 91% above median its 10-year median of 5.94 and 140.4% above the Software industry median of 4.73. Laboro AI's overall GF Score™ is 52/100. 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 Laboro AI (TSE:5586), the current ROE % is 11.37% 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 Laboro AI (TSE:5586) Overvalued in 2026?
Based on GuruFocus' analysis, Laboro AI stock appears to be undervalued.
The current stock price of 円859.00 is trading 43.6% below its estimated GF Value™ of 円1,521.98.
GuruFocus considers Laboro AI to be Significantly Undervalued.
Key valuation signals for TSE:5586:
ROE %: 11.37% (91% above median its 10-year median of 5.94)
GF Value™: 円1,521.98 vs. price of 円859.00 (43.6% below fair value)
Industry Position: 140.4% above the Software median (#1264 of 2677)
No single metric tells the full story. See the TSE:5586 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Laboro AI Inc is a Provider of developing business solutions using artificial intelligence technology intended to connect technology and business. The company also provides consulting services related to the utilization of artificial intelligence, which include planning, introduction, and execution support for AI utilization.
52GF Score
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