Stepchange HoldingsASX:STH +4.35%24 Return-on-Tangible-Asset is 11.92% as of Dec. 2025, which is 75% below its 10-year median of 47.40. GuruFocus rates ASX:STH with a GF Score™ of 24/100. The stock has 1 warning sign investors should review. Among 2,877 Software companies, Stepchange Holdings ranks better than 64.13% 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. Stepchange Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was A$1.05 Mil. Stepchange Holdings's average total tangible assets for the quarter that ended in Dec. 2025 was A$8.79 Mil. Therefore, Stepchange Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 11.92%.
The historical rank and industry rank for Stepchange Holdings's Return-on-Tangible-Asset or its related term are showing as below:
ASX:STH'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 5.96 Med: 47.4 Max: 55.46
Current: 5.96
During the past 3 years, Stepchange Holdings's highest Return-on-Tangible-Asset was 55.46%. The lowest was 5.96%. And the median was 47.40%.
ASX:STH's Return-on-Tangible-Asset is ranked better than 64.13% of 2877
companies
in the Software industry
Industry Median: 2.07
vs ASX:STH: 5.96
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.
Stepchange Holdings Return-on-Tangible-Asset Related Terms
Stepchange Holdings Return-on-Tangible-Asset Historical Data
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The historical data trend for Stepchange Holdings'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:STH vs UBER, SHOP, CRM: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, Stepchange Holdings'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.
Stepchange Holdings Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Stepchange Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Stepchange Holdings'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 11.92% mean?
Stepchange Holdings (ASX:STH) has a Return-on-Tangible-Asset of 11.92% 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 Stepchange Holdings and its competitors. This is 75% below median its historical median of 47.40. Over the past decade, Stepchange Holdings' Return-on-Tangible-Asset has ranged from 5.96 to 55.46. According to the industry distribution chart, Stepchange Holdings ranks #1032 out of 2877 companies in the Software industry, placing it in the top 35.9%.
Is Stepchange Holdings' Return-on-Tangible-Asset too high?
Stepchange Holdings' current Return-on-Tangible-Asset of 11.92% is 75% below median its 10-year median of 47.40. Over the past 10 years, this metric has ranged from a low of 5.96 to a high of 55.46. The Software industry median Return-on-Tangible-Asset is 2.07. Stepchange Holdings' value of 11.92% is 475.8% above this industry median. Based on the distribution chart, Stepchange Holdings ranks #1032 out of 2877 companies in the Software industry, which is above the industry midpoint. Overall, Stepchange Holdings has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does Stepchange Holdings' Return-on-Tangible-Asset compare to UBER and SHOP?
According to the Software industry distribution chart, Stepchange Holdings ranks #1032 out of 2877 companies for Return-on-Tangible-Asset. This puts Stepchange Holdings in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.07. Stepchange Holdings' value of 11.92% is 475.8% above this benchmark. Historically, Stepchange Holdings' own Return-on-Tangible-Asset has ranged from 5.96 to 55.46 over the past decade. While the company's 10-year median is 47.40 vs. the industry median of 2.07, Stepchange Holdings 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 2.07, 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. Stepchange Holdings's current Return-on-Tangible-Asset of 11.92% is 475.8% 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 Stepchange Holdings and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stepchange Holdings's current Return-on-Tangible-Asset is 11.92%, which is 75% below median its own 10-year median of 47.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stepchange Holdings stock overvalued right now?
Stepchange Holdings (ASX:STH) has a current Return-on-Tangible-Asset of 11.92%. The current Return-on-Tangible-Asset is 11.92%, which is 75% below median its 10-year median of 47.40 and 475.8% above the Software industry median of 2.07. Stepchange Holdings' overall GF Score™ is 24/100 with 1 warning sign 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 Stepchange Holdings (ASX:STH), the current Return-on-Tangible-Asset is 11.92% 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.
Stepchange Holdings Ltd is engaged in providing software services. It delivers end-to-end SAP ERP and digital transformation service. Its services include: Strategic Alignment and Execution; Program and Project Management; Change Management; and Business Analysis.
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