IRESSASX:IRE -0.32%73 Return-on-Tangible-Asset is 57.78% as of Dec. 2025, which is 77% above its 10-year median of 32.64. GuruFocus rates ASX:IRE with a GF Score™ of 73/100 and a GF Value™ of A$7.55 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,877 Software companies, IRESS ranks better than 96.94% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. IRESS's annualizedNet Income for the quarter that ended in Dec. 2025 was A$124.0 Mil. IRESS's average total tangible assets for the quarter that ended in Dec. 2025 was A$214.6 Mil. Therefore, IRESS's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 57.78%.
The historical rank and industry rank for IRESS's Return-on-Tangible-Asset or its related term are showing as below:
ASX:IRE'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -53.23 Med: 32.64 Max: 58.16
Current: 33.12
During the past 13 years, IRESS's highest Return-on-Tangible-Asset was 58.16%. The lowest was -53.23%. And the median was 32.64%.
ASX:IRE's Return-on-Tangible-Asset is ranked better than 96.94% of 2877
companies
in the Software industry
Industry Median: 2.04
vs ASX:IRE: 33.12
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
IRESS Return-on-Tangible-Asset Related Terms
IRESS Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for IRESS's Return-on-Tangible-Asset 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.
ASX:IRE vs UBER, SHOP, CRM: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, IRESS's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
IRESS Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, IRESS's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where IRESS's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets 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.
What does a Return-on-Tangible-Asset of 57.78% mean?
IRESS (ASX:IRE) has a Return-on-Tangible-Asset of 57.78% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on IRESS and its competitors. This is 77% above median its historical median of 32.64. According to the industry distribution chart, IRESS ranks #88 out of 2877 companies in the Software industry, placing it in the top 3.1%.
Is IRESS's Return-on-Tangible-Asset too high?
IRESS's current Return-on-Tangible-Asset of 57.78% is 77% above median its 10-year median of 32.64. The Software industry median Return-on-Tangible-Asset is 2.04. IRESS's value of 57.78% is 2732.4% above this industry median. Based on the distribution chart, IRESS ranks #88 out of 2877 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, IRESS has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does IRESS's Return-on-Tangible-Asset compare to UBER and SHOP?
According to the Software industry distribution chart, IRESS ranks #88 out of 2877 companies for Return-on-Tangible-Asset. This places IRESS in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.04. IRESS's value of 57.78% is 2732.4% above this benchmark. While the company's 10-year median is 32.64 vs. the industry median of 2.04, IRESS 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 Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.04, based on 2,877 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. IRESS's current Return-on-Tangible-Asset of 57.78% is 2732.4% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on IRESS and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IRESS's current Return-on-Tangible-Asset is 57.78%, which is 77% above median its own 10-year median of 32.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IRESS stock overvalued right now?
Based on GuruFocus' analysis, IRESS (ASX:IRE) is currently considered Modestly Undervalued. The stock's GF Value™ is A$7.55, compared to a current price of A$6.32 — trading 16.3% below its estimated fair value. The current Return-on-Tangible-Asset is 57.78%, which is 77% above median its 10-year median of 32.64 and 2732.4% above the Software industry median of 2.04. IRESS's overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For IRESS (ASX:IRE), the current Return-on-Tangible-Asset is 57.78% 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 IRESS (ASX:IRE) Overvalued in 2026?
Based on GuruFocus' analysis, IRESS stock appears to be undervalued.
The current stock price of A$6.32 is trading 16.3% below its estimated GF Value™ of A$7.55.
GuruFocus considers IRESS to be Modestly Undervalued.
Key valuation signals for ASX:IRE:
Return-on-Tangible-Asset: 57.78% (77% above median its 10-year median of 32.64)
GF Value™: A$7.55 vs. price of A$6.32 (16.3% below fair value)
Industry Position: 2732.4% above the Software median (#88 of 2877)
No single metric tells the full story. See the ASX:IRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Iress develops software for the financial-services industry, operating in multiple regions and servicing clients ranging from small retail to large institutional businesses. Its core business unit, mainly in Australia, generates most of the company's earnings and free cash flows. Iress expanded into noncore markets through acquisitions, ultimately eroding returns and margins, with free cash flows from the core business invested in the noncore businesses. Its recent strategy includes reprioritizing growth in the core Trading and Market Data and Wealth businesses, and divesting/monetizing noncore assets. We view this renewed focus on its core business as a positive, as it will help maintain Iress' economic moat.
73GF Score
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