AmdocsFRA:AOS +1.23%73 Return-on-Tangible-Asset is 17.85% as of Mar. 2026, which is 16% above its 10-year median of 15.33. GuruFocus rates FRA:AOS with a GF Score™ of 73/100 and a GF Value™ of €76.01 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,886 Software companies, Amdocs ranks better than 89.36% 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. Amdocs's annualizedNet Income for the quarter that ended in Mar. 2026 was €477 Mil. Amdocs's average total tangible assets for the quarter that ended in Mar. 2026 was €2,672 Mil. Therefore, Amdocs's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 17.85%.
The historical rank and industry rank for Amdocs's Return-on-Tangible-Asset or its related term are showing as below:
FRA:AOS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 12.84 Med: 15.33 Max: 19.4
Current: 17.21
During the past 13 years, Amdocs's highest Return-on-Tangible-Asset was 19.40%. The lowest was 12.84%. And the median was 15.33%.
FRA:AOS's Return-on-Tangible-Asset is ranked better than 89.36% of 2886
companies
in the Software industry
Industry Median: 2.035
vs FRA:AOS: 17.21
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.
Amdocs Return-on-Tangible-Asset Related Terms
Amdocs Return-on-Tangible-Asset Historical Data
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The historical data trend for Amdocs'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:AOS vs PATH, S, ACIW: Return-on-Tangible-Asset Comparison
For the Software - Infrastructure subindustry, Amdocs'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.
Amdocs Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Amdocs's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Amdocs'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 17.85% mean?
Amdocs (FRA:AOS) has a Return-on-Tangible-Asset of 17.85% 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 Amdocs and its competitors. This is 16% above median its historical median of 15.33. Over the past decade, Amdocs' Return-on-Tangible-Asset has ranged from 12.84 to 19.40. According to the industry distribution chart, Amdocs ranks #307 out of 2886 companies in the Software industry, placing it in the top 10.6%.
Is Amdocs' Return-on-Tangible-Asset too high?
Amdocs' current Return-on-Tangible-Asset of 17.85% is 16% above median its 10-year median of 15.33. Over the past 10 years, this metric has ranged from a low of 12.84 to a high of 19.40. The Software industry median Return-on-Tangible-Asset is 2.04. Amdocs' value of 17.85% is 777.1% above this industry median. Based on the distribution chart, Amdocs ranks #307 out of 2886 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Amdocs has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Amdocs' Return-on-Tangible-Asset compare to PATH and S?
According to the Software industry distribution chart, Amdocs ranks #307 out of 2886 companies for Return-on-Tangible-Asset. This places Amdocs in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.04. Amdocs' value of 17.85% is 777.1% above this benchmark. Historically, Amdocs' own Return-on-Tangible-Asset has ranged from 12.84 to 19.40 over the past decade. While the company's 10-year median is 15.33 vs. the industry median of 2.04, Amdocs 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 2,886 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. Amdocs's current Return-on-Tangible-Asset of 17.85% is 777.1% 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 Amdocs 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. Amdocs's current Return-on-Tangible-Asset is 17.85%, which is 16% above median its own 10-year median of 15.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amdocs stock overvalued right now?
Based on GuruFocus' analysis, Amdocs (FRA:AOS) is currently considered Significantly Undervalued. The stock's GF Value™ is €76.01, compared to a current price of €45.14 — trading 40.6% below its estimated fair value. The current Return-on-Tangible-Asset is 17.85%, which is 16% above median its 10-year median of 15.33 and 777.1% above the Software industry median of 2.04. Amdocs' overall GF Score™ is 73/100 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 Amdocs (FRA:AOS), the current Return-on-Tangible-Asset is 17.85% 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 Amdocs (FRA:AOS) Overvalued in 2026?
Based on GuruFocus' analysis, Amdocs stock appears to be undervalued.
The current stock price of €45.14 is trading 40.6% below its estimated GF Value™ of €76.01.
GuruFocus considers Amdocs to be Significantly Undervalued.
Key valuation signals for FRA:AOS:
Return-on-Tangible-Asset: 17.85% (16% above median its 10-year median of 15.33)
GF Value™: €76.01 vs. price of €45.14 (40.6% below fair value)
Industry Position: 777.1% above the Software median (#307 of 2886)
No single metric tells the full story. See the FRA:AOS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Amdocs Ltd is a provider of software and services to communications, entertainment, and media service providers. The Company operates in a single segment and designs, develops, markets, supports, implements, and operates open and modular cloud offerings. Its portfolio includes solutions across digital business systems and legacy business and operational support systems, supporting multiple lines of business such as wireless, broadband, cable, fiber, satellite, and digital services. The Company leverages artificial intelligence to support digital transformation, cloud adoption, and intelligent network automation. Geographically, it derives a majority of its revenue from North America and also operates in Europe and the rest of the world.
73GF Score
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