Ramco SystemsNSE:RAMCOSYS +0.40%56 Return-on-Tangible-Asset is 25.35% as of Mar. 2026, which is 1187% above its 10-year median of 1.97. GuruFocus rates NSE:RAMCOSYS with a GF Score™ of 56/100 and a GF Value™ of ₹459.41 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,883 Software companies, Ramco Systems ranks better than 81.06% 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. Ramco Systems's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹1,002 Mil. Ramco Systems's average total tangible assets for the quarter that ended in Mar. 2026 was ₹3,953 Mil. Therefore, Ramco Systems's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 25.35%.
The historical rank and industry rank for Ramco Systems's Return-on-Tangible-Asset or its related term are showing as below:
NSE:RAMCOSYS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -53.33 Med: 1.97 Max: 11.82
Current: 11.82
During the past 13 years, Ramco Systems's highest Return-on-Tangible-Asset was 11.82%. The lowest was -53.33%. And the median was 1.97%.
NSE:RAMCOSYS's Return-on-Tangible-Asset is ranked better than 81.06% of 2883
companies
in the Software industry
Industry Median: 2.02
vs NSE:RAMCOSYS: 11.82
Ramco Systems (NSE:RAMCOSYS) 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.
Ramco Systems Return-on-Tangible-Asset Related Terms
Ramco Systems Return-on-Tangible-Asset Historical Data
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The historical data trend for Ramco Systems'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.
NSE:RAMCOSYS vs UBER, SHOP, CRM: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, Ramco Systems'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.
Ramco Systems Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Ramco Systems's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Ramco Systems'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 25.35% mean?
Ramco Systems (NSE:RAMCOSYS) has a Return-on-Tangible-Asset of 25.35% 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 Ramco Systems and its competitors. This is 1187% above median its historical median of 1.97. According to the industry distribution chart, Ramco Systems ranks #546 out of 2883 companies in the Software industry, placing it in the top 18.9%.
Is Ramco Systems' Return-on-Tangible-Asset too high?
Ramco Systems' current Return-on-Tangible-Asset of 25.35% is 1187% above median its 10-year median of 1.97. The Software industry median Return-on-Tangible-Asset is 2.02. Ramco Systems' value of 25.35% is 1155% above this industry median. Based on the distribution chart, Ramco Systems ranks #546 out of 2883 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Ramco Systems has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ramco Systems' Return-on-Tangible-Asset compare to UBER and SHOP?
According to the Software industry distribution chart, Ramco Systems ranks #546 out of 2883 companies for Return-on-Tangible-Asset. This places Ramco Systems in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.02. Ramco Systems' value of 25.35% is 1155% above this benchmark. While the company's 10-year median is 1.97 vs. the industry median of 2.02, Ramco Systems 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 2.02, based on 2,883 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. Ramco Systems's current Return-on-Tangible-Asset of 25.35% is 1155% 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 Ramco Systems and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ramco Systems's current Return-on-Tangible-Asset is 25.35%, which is 1187% above median its own 10-year median of 1.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ramco Systems stock overvalued right now?
Based on GuruFocus' analysis, Ramco Systems (NSE:RAMCOSYS) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹459.41, compared to a current price of ₹799.60 — trading 74% above its estimated fair value. The current Return-on-Tangible-Asset is 25.35%, which is 1187% above median its 10-year median of 1.97 and 1155% above the Software industry median of 2.02. Ramco Systems' overall GF Score™ is 56/100 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 Ramco Systems (NSE:RAMCOSYS), the current Return-on-Tangible-Asset is 25.35% 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 Ramco Systems (NSE:RAMCOSYS) Overvalued in 2026?
Based on GuruFocus' analysis, Ramco Systems stock appears to be overvalued.
The current stock price of ₹799.60 is trading 74% above its estimated GF Value™ of ₹459.41.
GuruFocus considers Ramco Systems to be Significantly Overvalued.
Key valuation signals for NSE:RAMCOSYS:
Return-on-Tangible-Asset: 25.35% (1187% above median its 10-year median of 1.97)
GF Value™: ₹459.41 vs. price of ₹799.60 (74% above fair value)
Industry Position: 1155% above the Software median (#546 of 2883)
No single metric tells the full story. See the NSE:RAMCOSYS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ramco Systems Ltd develops software and software products for human capital management, payroll, enterprise resource management, monitoring and evaluation, and maintenance, repair, and overhaul providers in the Aviation industry. The company develops software through its enterprise application assembly and delivery platform Ramco VirtualWorks for transaction systems and Ramco Decision Works for analytics/reporting. The product portfolio of the company includes aviation, aerospace & defense management software, enterprise resource planning software, and payroll & logistics software on the cloud. It as only one operating segment which is Software Solutions & Services.
56GF Score
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