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Arla Plast ABFRA:7JB -2.37%71 Return-on-Tangible-Asset is 6.12% as of Mar. 2026, which is 34% below its 10-year median of 9.22. GuruFocus rates FRA:7JB with a GF Score™ of 71/100 and a GF Value™ of €4.75 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,612 Chemicals companies, Arla Plast AB ranks better than 82.63% 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. Arla Plast AB's annualizedNet Income for the quarter that ended in Mar. 2026 was €5.6 Mil. Arla Plast AB's average total tangible assets for the quarter that ended in Mar. 2026 was €91.6 Mil. Therefore, Arla Plast AB's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 6.12%.
The historical rank and industry rank for Arla Plast AB's Return-on-Tangible-Asset or its related term are showing as below:
FRA:7JB'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.66 Med: 9.22 Max: 13.16
Current: 8.45
During the past 8 years, Arla Plast AB's highest Return-on-Tangible-Asset was 13.16%. The lowest was 1.66%. And the median was 9.22%.
FRA:7JB's Return-on-Tangible-Asset is ranked better than 82.63% of 1612
companies
in the Chemicals industry
Industry Median: 3.075
vs FRA:7JB: 8.45
Arla Plast AB (FRA:7JB) Return-on-Tangible-Asset Explanation
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.
Arla Plast AB Return-on-Tangible-Asset Related Terms
Arla Plast AB Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Arla Plast AB'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.
FRA:7JB vs LIN, SHW, ECL: Return-on-Tangible-Asset Comparison
For the Specialty Chemicals subindustry, Arla Plast AB'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.
Arla Plast AB Return-on-Tangible-Asset vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Arla Plast AB's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Arla Plast AB'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 four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 6.12% mean?
Arla Plast AB (FRA:7JB) has a Return-on-Tangible-Asset of 6.12% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Arla Plast AB and its competitors. This is 34% below median its historical median of 9.22. Over the past decade, Arla Plast AB's Return-on-Tangible-Asset has ranged from 1.66 to 13.16. According to the industry distribution chart, Arla Plast AB ranks #280 out of 1612 companies in the Chemicals industry, placing it in the top 17.4%.
Is Arla Plast AB's Return-on-Tangible-Asset too high?
Arla Plast AB's current Return-on-Tangible-Asset of 6.12% is 34% below median its 10-year median of 9.22. Over the past 10 years, this metric has ranged from a low of 1.66 to a high of 13.16. The Chemicals industry median Return-on-Tangible-Asset is 3.08. Arla Plast AB's value of 6.12% is 99% above this industry median. Based on the distribution chart, Arla Plast AB ranks #280 out of 1612 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Arla Plast AB has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arla Plast AB's Return-on-Tangible-Asset compare to LIN and SHW?
According to the Chemicals industry distribution chart, Arla Plast AB ranks #280 out of 1612 companies for Return-on-Tangible-Asset. This places Arla Plast AB in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.08. Arla Plast AB's value of 6.12% is 99% above this benchmark. Historically, Arla Plast AB's own Return-on-Tangible-Asset has ranged from 1.66 to 13.16 over the past decade. While the company's 10-year median is 9.22 vs. the industry median of 3.08, Arla Plast AB 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 Chemicals company?
The median Return-on-Tangible-Asset among Chemicals companies is 3.08, based on 1,612 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. Arla Plast AB's current Return-on-Tangible-Asset of 6.12% is 99% 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 Arla Plast AB and its competitors. For the Chemicals industry, the median Return-on-Tangible-Asset is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arla Plast AB's current Return-on-Tangible-Asset is 6.12%, which is 34% below median its own 10-year median of 9.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arla Plast AB stock overvalued right now?
Based on GuruFocus' analysis, Arla Plast AB (FRA:7JB) is currently considered Significantly Undervalued. The stock's GF Value™ is €4.75, compared to a current price of €3.29 — trading 30.7% below its estimated fair value. The current Return-on-Tangible-Asset is 6.12%, which is 34% below median its 10-year median of 9.22 and 99% above the Chemicals industry median of 3.08. Arla Plast AB's overall GF Score™ is 71/100 with 2 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 Arla Plast AB (FRA:7JB), the current Return-on-Tangible-Asset is 6.12% 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 Arla Plast AB (FRA:7JB) Overvalued in 2026?
Based on GuruFocus' analysis, Arla Plast AB stock appears to be undervalued.
The current stock price of €3.29 is trading 30.7% below its estimated GF Value™ of €4.75.
GuruFocus considers Arla Plast AB to be Significantly Undervalued.
Key valuation signals for FRA:7JB:
Return-on-Tangible-Asset: 6.12% (34% below median its 10-year median of 9.22)
GF Value™: €4.75 vs. price of €3.29 (30.7% below fair value)
Industry Position: 99% above the Chemicals median (#280 of 1612)
No single metric tells the full story. See the FRA:7JB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arla Plast AB is a extruders of plastic sheets in Europe. It offers plastic solid sheets and multiwall sheets in Polycarbonate, Polyethylene terephthalate glycol, ABS and other materials.
71GF Score
Get the complete analysis for FRA:7JB
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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