SmartgroupFRA:SW8 +1.99%89 Return-on-Tangible-Asset is 22.23% as of Dec. 2025, which is 39% below its 10-year median of 36.28. GuruFocus rates FRA:SW8 with a GF Score™ of 89/100 and a GF Value™ of €5.90. The stock has 6 warning signs investors should review. Among 1,094 Business Services companies, Smartgroup ranks better than 94.88% 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. Smartgroup's annualizedNet Income for the quarter that ended in Dec. 2025 was €46.9 Mil. Smartgroup's average total tangible assets for the quarter that ended in Dec. 2025 was €211.1 Mil. Therefore, Smartgroup's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 22.23%.
The historical rank and industry rank for Smartgroup's Return-on-Tangible-Asset or its related term are showing as below:
FRA:SW8'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 20.89 Med: 36.28 Max: 49.73
Current: 21.64
During the past 12 years, Smartgroup's highest Return-on-Tangible-Asset was 49.73%. The lowest was 20.89%. And the median was 36.28%.
FRA:SW8's Return-on-Tangible-Asset is ranked better than 94.88% of 1094
companies
in the Business Services industry
Industry Median: 3.915
vs FRA:SW8: 21.64
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.
Smartgroup Return-on-Tangible-Asset Related Terms
Smartgroup Return-on-Tangible-Asset Historical Data
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The historical data trend for Smartgroup'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:SW8 vs CTAS, CPRT, ULS: Return-on-Tangible-Asset Comparison
For the Specialty Business Services subindustry, Smartgroup'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.
Smartgroup Return-on-Tangible-Asset vs Business Services Industry
For the Business Services industry and Industrials sector, Smartgroup's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Smartgroup'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 22.23% mean?
Smartgroup (FRA:SW8) has a Return-on-Tangible-Asset of 22.23% 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 Smartgroup and its competitors. This is 39% below median its historical median of 36.28. Over the past decade, Smartgroup's Return-on-Tangible-Asset has ranged from 20.89 to 49.73. According to the industry distribution chart, Smartgroup ranks #56 out of 1094 companies in the Business Services industry, placing it in the top 5.1%.
Is Smartgroup's Return-on-Tangible-Asset too high?
Smartgroup's current Return-on-Tangible-Asset of 22.23% is 39% below median its 10-year median of 36.28. Over the past 10 years, this metric has ranged from a low of 20.89 to a high of 49.73. The Business Services industry median Return-on-Tangible-Asset is 3.92. Smartgroup's value of 22.23% is 467.8% above this industry median. Based on the distribution chart, Smartgroup ranks #56 out of 1094 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Smartgroup has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Smartgroup's Return-on-Tangible-Asset compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Smartgroup ranks #56 out of 1094 companies for Return-on-Tangible-Asset. This places Smartgroup in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.92. Smartgroup's value of 22.23% is 467.8% above this benchmark. Historically, Smartgroup's own Return-on-Tangible-Asset has ranged from 20.89 to 49.73 over the past decade. While the company's 10-year median is 36.28 vs. the industry median of 3.92, Smartgroup 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 Business Services company?
The median Return-on-Tangible-Asset among Business Services companies is 3.92, based on 1,094 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. Smartgroup's current Return-on-Tangible-Asset of 22.23% is 467.8% 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 Smartgroup and its competitors. For the Business Services industry, the median Return-on-Tangible-Asset is 3.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smartgroup's current Return-on-Tangible-Asset is 22.23%, which is 39% below median its own 10-year median of 36.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smartgroup stock overvalued right now?
Smartgroup (FRA:SW8) has a current Return-on-Tangible-Asset of 22.23%. The stock's GF Value™ is €5.90, compared to a current price of €7.70 — trading 30.5% above its estimated fair value. The current Return-on-Tangible-Asset is 22.23%, which is 39% below median its 10-year median of 36.28 and 467.8% above the Business Services industry median of 3.92. Smartgroup's overall GF Score™ is 89/100 with 6 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 Smartgroup (FRA:SW8), the current Return-on-Tangible-Asset is 22.23% 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 Smartgroup (FRA:SW8) Overvalued in 2026?
Based on GuruFocus' analysis, Smartgroup stock appears to be overvalued.
The current stock price of €7.70 is trading 30.5% above its estimated GF Value™ of €5.90.
Key valuation signals for FRA:SW8:
Return-on-Tangible-Asset: 22.23% (39% below median its 10-year median of 36.28)
GF Value™: €5.90 vs. price of €7.70 (30.5% above fair value)
Industry Position: 467.8% above the Business Services median (#56 of 1094)
No single metric tells the full story. See the FRA:SW8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smartgroup Corporation is an Australia-based company that provides specialist employee management services. Its services include salary packaging, novated leasing, vehicle fleet management, payroll administration, employee share plan administration and workforce optimization. The operating segments of the company are: outsourced administration, or OA, and vehicle services, or VS. Most of the group's revenue is generated from the OA segment which provides outsourced salary packaging services, novated leasing, share plan administration and outsourced payroll services. The VS segment provides end-to-end vehicle fleet management services.
89GF Score
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