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Somero EnterprisesLSE:SOM +1.30%70 Return-on-Tangible-Asset is 17.04% as of Dec. 2025, which is 46% below its 10-year median of 31.75. GuruFocus rates LSE:SOM with a GF Score™ of 70/100 and a GF Value™ of £2.07 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 212 Farm & Heavy Construction Machinery companies, Somero Enterprises ranks better than 86.79% 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. Somero Enterprises's annualizedNet Income for the quarter that ended in Dec. 2025 was £11.40 Mil. Somero Enterprises's average total tangible assets for the quarter that ended in Dec. 2025 was £66.89 Mil. Therefore, Somero Enterprises's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 17.04%.
The historical rank and industry rank for Somero Enterprises's Return-on-Tangible-Asset or its related term are showing as below:
LSE:SOM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 10.58 Med: 31.75 Max: 41.99
Current: 10.97
During the past 13 years, Somero Enterprises's highest Return-on-Tangible-Asset was 41.99%. The lowest was 10.58%. And the median was 31.75%.
LSE:SOM's Return-on-Tangible-Asset is ranked better than 86.79% of 212
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 3.925
vs LSE:SOM: 10.97
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.
Somero Enterprises Return-on-Tangible-Asset Related Terms
Somero Enterprises Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Somero Enterprises'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:SOM vs CAT, DE, PCAR: Return-on-Tangible-Asset Comparison
For the Farm & Heavy Construction Machinery subindustry, Somero Enterprises'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.
Somero Enterprises Return-on-Tangible-Asset vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Somero Enterprises's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Somero Enterprises'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 17.04% mean?
Somero Enterprises (LSE:SOM) has a Return-on-Tangible-Asset of 17.04% 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 Somero Enterprises and its competitors. This is 46% below median its historical median of 31.75. Over the past decade, Somero Enterprises' Return-on-Tangible-Asset has ranged from 10.58 to 41.99. According to the industry distribution chart, Somero Enterprises ranks #28 out of 212 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 13.2%.
Is Somero Enterprises' Return-on-Tangible-Asset too high?
Somero Enterprises' current Return-on-Tangible-Asset of 17.04% is 46% below median its 10-year median of 31.75. Over the past 10 years, this metric has ranged from a low of 10.58 to a high of 41.99. The Farm & Heavy Construction Machinery industry median Return-on-Tangible-Asset is 3.93. Somero Enterprises' value of 17.04% is 334.1% above this industry median. Based on the distribution chart, Somero Enterprises ranks #28 out of 212 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Somero Enterprises has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Somero Enterprises' Return-on-Tangible-Asset compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Somero Enterprises ranks #28 out of 212 companies for Return-on-Tangible-Asset. This places Somero Enterprises in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.93. Somero Enterprises' value of 17.04% is 334.1% above this benchmark. Historically, Somero Enterprises' own Return-on-Tangible-Asset has ranged from 10.58 to 41.99 over the past decade. While the company's 10-year median is 31.75 vs. the industry median of 3.93, Somero Enterprises 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 Farm & Heavy Construction Machinery company?
The median Return-on-Tangible-Asset among Farm & Heavy Construction Machinery companies is 3.93, based on 212 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. Somero Enterprises's current Return-on-Tangible-Asset of 17.04% is 334.1% 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 Somero Enterprises and its competitors. For the Farm & Heavy Construction Machinery industry, the median Return-on-Tangible-Asset is 3.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Somero Enterprises's current Return-on-Tangible-Asset is 17.04%, which is 46% below median its own 10-year median of 31.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Somero Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Somero Enterprises (LSE:SOM) is currently considered Modestly Overvalued. The stock's GF Value™ is £2.07, compared to a current price of £2.33 — trading 12.6% above its estimated fair value. The current Return-on-Tangible-Asset is 17.04%, which is 46% below median its 10-year median of 31.75 and 334.1% above the Farm & Heavy Construction Machinery industry median of 3.93. Somero Enterprises' overall GF Score™ is 70/100 with 8 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 Somero Enterprises (LSE:SOM), the current Return-on-Tangible-Asset is 17.04% 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 Somero Enterprises (LSE:SOM) Overvalued in 2026?
Based on GuruFocus' analysis, Somero Enterprises stock appears to be overvalued.
The current stock price of £2.33 is trading 12.6% above its estimated GF Value™ of £2.07.
GuruFocus considers Somero Enterprises to be Modestly Overvalued.
Key valuation signals for LSE:SOM:
Return-on-Tangible-Asset: 17.04% (46% below median its 10-year median of 31.75)
GF Value™: £2.07 vs. price of £2.33 (12.6% above fair value)
Industry Position: 334.1% above the Farm & Heavy Construction Machinery median (#28 of 212)
No single metric tells the full story. See the LSE:SOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Somero Enterprises Inc designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment, related parts and accessories, and training services world'wide. Its products include Ride-on Laser Screeds, Lightweight Screeds, Boom Laser Screeds, Compact Boom Screeds, Stationary Laser Screeds, Software Packages, Factory Certified Remanufactured Equipment, Materials Placement. The Company operates as a single reportable segment. The group has presence in North America, Europe, Australia, ROW (includes Latin America, India, China, Middle East, Korea, and Southeast Asia). The company generates majority of revenue from North America.
70GF Score
Get the complete analysis for LSE:SOM
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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