Ratos ABFRA:RAZC +0.71%46 Return-on-Tangible-Asset is 4.64% as of Mar. 2026, which is 38% above its 10-year median of 3.37. GuruFocus rates FRA:RAZC with a GF Score™ of 46/100 and a GF Value™ of €2.00 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,777 Construction companies, Ratos AB ranks better than 89.87% 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. Ratos AB's annualizedNet Income for the quarter that ended in Mar. 2026 was €72 Mil. Ratos AB's average total tangible assets for the quarter that ended in Mar. 2026 was €1,546 Mil. Therefore, Ratos AB's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 4.64%.
The historical rank and industry rank for Ratos AB's Return-on-Tangible-Asset or its related term are showing as below:
FRA:RAZC'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -3.79 Med: 3.37 Max: 14.06
Current: 12.15
During the past 13 years, Ratos AB's highest Return-on-Tangible-Asset was 14.06%. The lowest was -3.79%. And the median was 3.37%.
FRA:RAZC's Return-on-Tangible-Asset is ranked better than 89.87% of 1777
companies
in the Construction industry
Industry Median: 3
vs FRA:RAZC: 12.15
Ratos AB (FRA:RAZC) 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.
Ratos AB Return-on-Tangible-Asset Related Terms
Ratos AB Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Ratos 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:RAZC vs PWR, FIX, EME: Return-on-Tangible-Asset Comparison
For the Engineering & Construction subindustry, Ratos 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.
Ratos AB Return-on-Tangible-Asset vs Construction Industry
For the Construction industry and Industrials sector, Ratos AB's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Ratos 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 4.64% mean?
Ratos AB (FRA:RAZC) has a Return-on-Tangible-Asset of 4.64% 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 Ratos AB and its competitors. This is 38% above median its historical median of 3.37. According to the industry distribution chart, Ratos AB ranks #180 out of 1777 companies in the Construction industry, placing it in the top 10.1%.
Is Ratos AB's Return-on-Tangible-Asset too high?
Ratos AB's current Return-on-Tangible-Asset of 4.64% is 38% above median its 10-year median of 3.37. The Construction industry median Return-on-Tangible-Asset is 3.00. Ratos AB's value of 4.64% is 54.7% above this industry median. Based on the distribution chart, Ratos AB ranks #180 out of 1777 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Ratos AB has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ratos AB's Return-on-Tangible-Asset compare to PWR and FIX?
According to the Construction industry distribution chart, Ratos AB ranks #180 out of 1777 companies for Return-on-Tangible-Asset. This places Ratos AB in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.00. Ratos AB's value of 4.64% is 54.7% above this benchmark. While the company's 10-year median is 3.37 vs. the industry median of 3.00, Ratos 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 Construction company?
The median Return-on-Tangible-Asset among Construction companies is 3.00, based on 1,777 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. Ratos AB's current Return-on-Tangible-Asset of 4.64% is 54.7% 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 Ratos AB and its competitors. For the Construction industry, the median Return-on-Tangible-Asset is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ratos AB's current Return-on-Tangible-Asset is 4.64%, which is 38% above median its own 10-year median of 3.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ratos AB stock overvalued right now?
Based on GuruFocus' analysis, Ratos AB (FRA:RAZC) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.00, compared to a current price of €2.83 — trading 41.5% above its estimated fair value. The current Return-on-Tangible-Asset is 4.64%, which is 38% above median its 10-year median of 3.37 and 54.7% above the Construction industry median of 3.00. Ratos AB's overall GF Score™ is 46/100 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 Ratos AB (FRA:RAZC), the current Return-on-Tangible-Asset is 4.64% 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 Ratos AB (FRA:RAZC) Overvalued in 2026?
Based on GuruFocus' analysis, Ratos AB stock appears to be overvalued.
The current stock price of €2.83 is trading 41.5% above its estimated GF Value™ of €2.00.
GuruFocus considers Ratos AB to be Significantly Overvalued.
Key valuation signals for FRA:RAZC:
Return-on-Tangible-Asset: 4.64% (38% above median its 10-year median of 3.37)
GF Value™: €2.00 vs. price of €2.83 (41.5% above fair value)
Industry Position: 54.7% above the Construction median (#180 of 1777)
No single metric tells the full story. See the FRA:RAZC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ratos AB is an investment company that owns and develops unlisted medium-and small-sized Nordic companies. The company focuses on technological and infrastructure solutions and comprises two business segment; Construction & Services and Consumer. Majority of the revenue is generated from its Construction & Services segment which predominantly includes maintenance of infrastructure within railway, road, energy solutions, and construction of new critical buildings such as hospitals, schools, police stations and governmental buildings in the Nordics. Geographically, the company generates majority of its revenue from Norway and rest from Sweden and other regions.
46GF Score
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