Severn TrentLSE:SVT +0.20%80 Return-on-Tangible-Asset is 1.69% as of Mar. 2026, which is 5% below its 10-year median of 1.78. GuruFocus rates LSE:SVT with a GF Score™ of 80/100 and a GF Value™ of £30.15 (Fairly Valued). The stock has 7 warning signs investors should review. Among 510 Utilities - Regulated companies, Severn Trent ranks worse than 67.25% 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. Severn Trent's annualizedNet Income for the quarter that ended in Mar. 2026 was £287 Mil. Severn Trent's average total tangible assets for the quarter that ended in Mar. 2026 was £17,042 Mil. Therefore, Severn Trent's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 1.69%.
The historical rank and industry rank for Severn Trent's Return-on-Tangible-Asset or its related term are showing as below:
LSE:SVT'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -0.79 Med: 1.78 Max: 3.98
Current: 2.24
During the past 13 years, Severn Trent's highest Return-on-Tangible-Asset was 3.98%. The lowest was -0.79%. And the median was 1.78%.
LSE:SVT's Return-on-Tangible-Asset is ranked worse than 67.25% of 510
companies
in the Utilities - Regulated industry
Industry Median: 3.3
vs LSE:SVT: 2.24
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.
Severn Trent Return-on-Tangible-Asset Related Terms
Severn Trent Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Severn Trent'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:SVT vs AWK, WTRG, AWR: Return-on-Tangible-Asset Comparison
For the Utilities - Regulated Water subindustry, Severn Trent'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.
Severn Trent Return-on-Tangible-Asset vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Severn Trent's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Severn Trent'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 (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 1.69% mean?
Severn Trent (LSE:SVT) has a Return-on-Tangible-Asset of 1.69% 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 Severn Trent and its competitors. This is near median its historical median of 1.78. According to the industry distribution chart, Severn Trent ranks #343 out of 510 companies in the Utilities - Regulated industry, placing it in the top 67.3%.
Is Severn Trent's Return-on-Tangible-Asset too high?
Severn Trent's current Return-on-Tangible-Asset of 1.69% is near median its 10-year median of 1.78. The Utilities - Regulated industry median Return-on-Tangible-Asset is 3.30. Severn Trent's value of 1.69% is 48.8% below this industry median. Based on the distribution chart, Severn Trent ranks #343 out of 510 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Severn Trent has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Severn Trent's Return-on-Tangible-Asset compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Severn Trent ranks #343 out of 510 companies for Return-on-Tangible-Asset. This places Severn Trent in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.30. Severn Trent's value of 1.69% is 48.8% below this benchmark. While the company's 10-year median is 1.78 vs. the industry median of 3.30, Severn Trent has consistently been below 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 an Utilities - Regulated company?
The median Return-on-Tangible-Asset among Utilities - Regulated companies is 3.30, based on 510 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. Severn Trent's current Return-on-Tangible-Asset of 1.69% is 48.8% below 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 Severn Trent and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Asset is 3.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Severn Trent's current Return-on-Tangible-Asset is 1.69%, which is near median its own 10-year median of 1.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Severn Trent stock overvalued right now?
Based on GuruFocus' analysis, Severn Trent (LSE:SVT) is currently considered Fairly Valued. The stock's GF Value™ is £30.15, compared to a current price of £29.60 — trading 1.8% below its estimated fair value. The current Return-on-Tangible-Asset is 1.69%, which is near median its 10-year median of 1.78 and 48.8% below the Utilities - Regulated industry median of 3.30. Severn Trent's overall GF Score™ is 80/100 with 7 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 Severn Trent (LSE:SVT), the current Return-on-Tangible-Asset is 1.69% 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 Severn Trent (LSE:SVT) Overvalued in 2026?
Based on GuruFocus' analysis, Severn Trent stock appears to be undervalued.
The current stock price of £29.60 is trading 1.8% below its estimated GF Value™ of £30.15.
GuruFocus considers Severn Trent to be Fairly Valued.
Key valuation signals for LSE:SVT:
Return-on-Tangible-Asset: 1.69% (near median its 10-year median of 1.78)
GF Value™: £30.15 vs. price of £29.60 (1.8% below fair value)
Industry Position: 48.8% below the Utilities - Regulated median (#343 of 510)
No single metric tells the full story. See the LSE:SVT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Severn Trent PLC is a United Kingdom-based water utilities company. It mainly operates in the U.K., but also in the United States and other countries in Europe. The company derives the majority of its revenue from its regulated water and wastewater segment, which supplies water and conducts sewage and environmental services. The company also operates a business services segment that is involved with renewable energy operations. The company provides contract services to industrial and municipal clients to develop water treatment facilities and networks. The firm generates its renewable energy by using hydropower, wind power, and solar power.
80GF Score
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