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Observit ABFRA:T3Z -0.53%33 Return-on-Tangible-Asset is 3.19% as of Mar. 2026, which is 1% below its 10-year median of 3.23. GuruFocus rates FRA:T3Z with a GF Score™ of 33/100 and a GF Value™ of €0.03 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,894 Software companies, Observit AB ranks better than 51.52% 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. Observit AB's annualizedNet Income for the quarter that ended in Mar. 2026 was €0.12 Mil. Observit AB's average total tangible assets for the quarter that ended in Mar. 2026 was €3.89 Mil. Therefore, Observit AB's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 3.19%.
The historical rank and industry rank for Observit AB's Return-on-Tangible-Asset or its related term are showing as below:
FRA:T3Z'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -5.02 Med: 3.23 Max: 21.74
Current: 2.52
During the past 5 years, Observit AB's highest Return-on-Tangible-Asset was 21.74%. The lowest was -5.02%. And the median was 3.23%.
FRA:T3Z's Return-on-Tangible-Asset is ranked better than 51.52% of 2894
companies
in the Software industry
Industry Median: 2.095
vs FRA:T3Z: 2.52
Observit AB (FRA:T3Z) 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.
Observit AB Return-on-Tangible-Asset Related Terms
Observit AB Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Observit 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:T3Z vs IBM, ACN, FISV: Return-on-Tangible-Asset Comparison
For the Information Technology Services subindustry, Observit 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.
Observit AB Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Observit AB's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Observit 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 3.19% mean?
Observit AB (FRA:T3Z) has a Return-on-Tangible-Asset of 3.19% 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 Observit AB and its competitors. This is near median its historical median of 3.23. According to the industry distribution chart, Observit AB ranks #1403 out of 2894 companies in the Software industry, placing it in the top 48.5%.
Is Observit AB's Return-on-Tangible-Asset too high?
Observit AB's current Return-on-Tangible-Asset of 3.19% is near median its 10-year median of 3.23. The Software industry median Return-on-Tangible-Asset is 2.10. Observit AB's value of 3.19% is 52.3% above this industry median. Based on the distribution chart, Observit AB ranks #1403 out of 2894 companies in the Software industry, which is above the industry midpoint. Overall, Observit AB has a GF Score™ of 33/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Observit AB's Return-on-Tangible-Asset compare to IBM and ACN?
According to the Software industry distribution chart, Observit AB ranks #1403 out of 2894 companies for Return-on-Tangible-Asset. This puts Observit AB in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.10. Observit AB's value of 3.19% is 52.3% above this benchmark. While the company's 10-year median is 3.23 vs. the industry median of 2.10, Observit 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 Software company?
The median Return-on-Tangible-Asset among Software companies is 2.10, based on 2,894 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. Observit AB's current Return-on-Tangible-Asset of 3.19% is 52.3% 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 Observit AB and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Observit AB's current Return-on-Tangible-Asset is 3.19%, which is near median its own 10-year median of 3.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Observit AB stock overvalued right now?
Based on GuruFocus' analysis, Observit AB (FRA:T3Z) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.03, compared to a current price of €0.06 — trading 86.3% above its estimated fair value. The current Return-on-Tangible-Asset is 3.19%, which is near median its 10-year median of 3.23 and 52.3% above the Software industry median of 2.10. Observit AB's overall GF Score™ is 33/100 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 Observit AB (FRA:T3Z), the current Return-on-Tangible-Asset is 3.19% 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 Observit AB (FRA:T3Z) Overvalued in 2026?
Based on GuruFocus' analysis, Observit AB stock appears to be overvalued.
The current stock price of €0.06 is trading 86.3% above its estimated GF Value™ of €0.03.
GuruFocus considers Observit AB to be Significantly Overvalued.
Key valuation signals for FRA:T3Z:
Return-on-Tangible-Asset: 3.19% (near median its 10-year median of 3.23)
GF Value™: €0.03 vs. price of €0.06 (86.3% above fair value)
Industry Position: 52.3% above the Software median (#1403 of 2894)
No single metric tells the full story. See the FRA:T3Z stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Observit AB is the market leader in the Nordics when it comes to mobile video surveillance in public transport. The company provides software as a cloud service, and a Software as a Service (SaaS) solution, and currently has approximately 38,000 licenses (one license per security camera) connected globally. The customer base includes bus operators such as Nobina, Keolis, and Arriva and other transport-heavy customers such as Elis. Observit wants to become the brand for mobile video solutions in the transport sector.
33GF Score
Get the complete analysis for FRA:T3Z
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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