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SoftcatLSE:SCT +0.27%81 Return-on-Tangible-Asset is 11.10% as of Jan. 2026, which is 39% below its 10-year median of 18.11. GuruFocus rates LSE:SCT with a GF Score™ of 81/100 and a GF Value™ of £26.02 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,502 Hardware companies, Softcat ranks better than 92.33% 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. Softcat's annualizedNet Income for the quarter that ended in Jan. 2026 was £131 Mil. Softcat's average total tangible assets for the quarter that ended in Jan. 2026 was £1,179 Mil. Therefore, Softcat's annualized Return-on-Tangible-Asset for the quarter that ended in Jan. 2026 was 11.10%.
The historical rank and industry rank for Softcat's Return-on-Tangible-Asset or its related term are showing as below:
LSE:SCT'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 13.32 Med: 18.11 Max: 20.87
Current: 13.32
During the past 13 years, Softcat's highest Return-on-Tangible-Asset was 20.87%. The lowest was 13.32%. And the median was 18.11%.
LSE:SCT's Return-on-Tangible-Asset is ranked better than 92.33% of 2502
companies
in the Hardware industry
Industry Median: 2.445
vs LSE:SCT: 13.32
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.
Softcat Return-on-Tangible-Asset Related Terms
Softcat Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Softcat'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.
LSE:SCT vs SNX, ARW, AVT: Return-on-Tangible-Asset Comparison
For the Electronics & Computer Distribution subindustry, Softcat'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.
Softcat Return-on-Tangible-Asset vs Hardware Industry
For the Hardware industry and Technology sector, Softcat's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Softcat'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 (Jan. 2026) net income data.
What does a Return-on-Tangible-Asset of 11.10% mean?
Softcat (LSE:SCT) has a Return-on-Tangible-Asset of 11.10% as of Jan. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Softcat and its competitors. This is 39% below median its historical median of 18.11. Over the past decade, Softcat's Return-on-Tangible-Asset has ranged from 13.32 to 20.87. According to the industry distribution chart, Softcat ranks #192 out of 2502 companies in the Hardware industry, placing it in the top 7.7%.
Is Softcat's Return-on-Tangible-Asset too high?
Softcat's current Return-on-Tangible-Asset of 11.10% is 39% below median its 10-year median of 18.11. Over the past 10 years, this metric has ranged from a low of 13.32 to a high of 20.87. The Hardware industry median Return-on-Tangible-Asset is 2.45. Softcat's value of 11.10% is 354% above this industry median. Based on the distribution chart, Softcat ranks #192 out of 2502 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Softcat has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Softcat's Return-on-Tangible-Asset compare to SNX and ARW?
According to the Hardware industry distribution chart, Softcat ranks #192 out of 2502 companies for Return-on-Tangible-Asset. This places Softcat in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.45. Softcat's value of 11.10% is 354% above this benchmark. Historically, Softcat's own Return-on-Tangible-Asset has ranged from 13.32 to 20.87 over the past decade. While the company's 10-year median is 18.11 vs. the industry median of 2.45, Softcat 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 Hardware company?
The median Return-on-Tangible-Asset among Hardware companies is 2.45, based on 2,502 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. Softcat's current Return-on-Tangible-Asset of 11.10% is 354% 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 Softcat and its competitors. For the Hardware industry, the median Return-on-Tangible-Asset is 2.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Softcat's current Return-on-Tangible-Asset is 11.10%, which is 39% below median its own 10-year median of 18.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softcat stock overvalued right now?
Based on GuruFocus' analysis, Softcat (LSE:SCT) is currently considered Modestly Undervalued. The stock's GF Value™ is £26.02, compared to a current price of £18.63 — trading 28.4% below its estimated fair value. The current Return-on-Tangible-Asset is 11.10%, which is 39% below median its 10-year median of 18.11 and 354% above the Hardware industry median of 2.45. Softcat's overall GF Score™ is 81/100 with 4 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 Softcat (LSE:SCT), the current Return-on-Tangible-Asset is 11.10% as of Jan. 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 Softcat (LSE:SCT) Overvalued in 2026?
Based on GuruFocus' analysis, Softcat stock appears to be undervalued.
The current stock price of £18.63 is trading 28.4% below its estimated GF Value™ of £26.02.
GuruFocus considers Softcat to be Modestly Undervalued.
Key valuation signals for LSE:SCT:
Return-on-Tangible-Asset: 11.10% (39% below median its 10-year median of 18.11)
GF Value™: £26.02 vs. price of £18.63 (28.4% below fair value)
Industry Position: 354% above the Hardware median (#192 of 2502)
No single metric tells the full story. See the LSE:SCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Softcat PLC is an information technology infrastructure and service provider offering software licensing, workplace technology, networking and security, and cloud and data center solutions to corporates, public sector organizations, and small to medium-sized businesses, with the latter being the main business provider. It earns revenue from software, hardware, and services, including its own services, with the majority derived from software products. Its solutions include Workspace, Cyber Security, Networking and Connectivity, Data, Automation and AI, and Hybrid Cloud Solutions. The company serves Small to Medium Businesses, Enterprise, Multinational Services, and the Public Sector including healthcare, education, government, defence, police, and emergency services.
81GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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