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Solution DynamicsNZSE:SDL 64 Return-on-Tangible-Asset is 2.57% as of Dec. 2025, which is 87% below its 10-year median of 19.86. GuruFocus rates NZSE:SDL with a GF Score™ of 64/100 and a GF Value™ of NZ$0.99 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,893 Software companies, Solution Dynamics ranks better than 53.3% 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. Solution Dynamics's annualizedNet Income for the quarter that ended in Dec. 2025 was NZ$0.43 Mil. Solution Dynamics's average total tangible assets for the quarter that ended in Dec. 2025 was NZ$16.63 Mil. Therefore, Solution Dynamics's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 2.57%.
The historical rank and industry rank for Solution Dynamics's Return-on-Tangible-Asset or its related term are showing as below:
NZSE:SDL'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.88 Med: 19.86 Max: 28.19
Current: 2.88
During the past 13 years, Solution Dynamics's highest Return-on-Tangible-Asset was 28.19%. The lowest was 2.88%. And the median was 19.86%.
NZSE:SDL's Return-on-Tangible-Asset is ranked better than 53.3% of 2893
companies
in the Software industry
Industry Median: 2.06
vs NZSE:SDL: 2.88
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.
Solution Dynamics Return-on-Tangible-Asset Related Terms
Solution Dynamics Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Solution Dynamics'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.
NZSE:SDL vs QH, SHOP, UBER: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, Solution Dynamics'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.
Solution Dynamics Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Solution Dynamics's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Solution Dynamics'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 2.57% mean?
Solution Dynamics (NZSE:SDL) has a Return-on-Tangible-Asset of 2.57% 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 Solution Dynamics and its competitors. This is 87% below median its historical median of 19.86. Over the past decade, Solution Dynamics' Return-on-Tangible-Asset has ranged from 2.88 to 28.19. According to the industry distribution chart, Solution Dynamics ranks #1351 out of 2893 companies in the Software industry, placing it in the top 46.7%.
Is Solution Dynamics' Return-on-Tangible-Asset too high?
Solution Dynamics' current Return-on-Tangible-Asset of 2.57% is 87% below median its 10-year median of 19.86. Over the past 10 years, this metric has ranged from a low of 2.88 to a high of 28.19. The Software industry median Return-on-Tangible-Asset is 2.06. Solution Dynamics' value of 2.57% is 24.8% above this industry median. Based on the distribution chart, Solution Dynamics ranks #1351 out of 2893 companies in the Software industry, which is above the industry midpoint. Overall, Solution Dynamics has a GF Score™ of 64/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Solution Dynamics' Return-on-Tangible-Asset compare to QH and SHOP?
According to the Software industry distribution chart, Solution Dynamics ranks #1351 out of 2893 companies for Return-on-Tangible-Asset. This puts Solution Dynamics in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.06. Solution Dynamics' value of 2.57% is 24.8% above this benchmark. Historically, Solution Dynamics' own Return-on-Tangible-Asset has ranged from 2.88 to 28.19 over the past decade. While the company's 10-year median is 19.86 vs. the industry median of 2.06, Solution Dynamics 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 2.06, based on 2,893 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. Solution Dynamics's current Return-on-Tangible-Asset of 2.57% is 24.8% 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 Solution Dynamics and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solution Dynamics's current Return-on-Tangible-Asset is 2.57%, which is 87% below median its own 10-year median of 19.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solution Dynamics stock overvalued right now?
Based on GuruFocus' analysis, Solution Dynamics (NZSE:SDL) is currently considered Significantly Undervalued. The stock's GF Value™ is NZ$0.99, compared to a current price of NZ$0.58 — trading 41.4% below its estimated fair value. The current Return-on-Tangible-Asset is 2.57%, which is 87% below median its 10-year median of 19.86 and 24.8% above the Software industry median of 2.06. Solution Dynamics' overall GF Score™ is 64/100 with 3 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 Solution Dynamics (NZSE:SDL), the current Return-on-Tangible-Asset is 2.57% 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 Solution Dynamics (NZSE:SDL) Overvalued in 2026?
Based on GuruFocus' analysis, Solution Dynamics stock appears to be undervalued.
The current stock price of NZ$0.58 is trading 41.4% below its estimated GF Value™ of NZ$0.99.
GuruFocus considers Solution Dynamics to be Significantly Undervalued.
Key valuation signals for NZSE:SDL:
Return-on-Tangible-Asset: 2.57% (87% below median its 10-year median of 19.86)
GF Value™: NZ$0.99 vs. price of NZ$0.58 (41.4% below fair value)
Industry Position: 24.8% above the Software median (#1351 of 2893)
No single metric tells the full story. See the NZSE:SDL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solution Dynamics Ltd is a company engaged in providing customer communications solutions. Its products and services are represented by revenue streams: Digital Printing & Document Handling Services; and Software and Technology, Outsourced services. Services include digital print and mail house processing for mail items like invoices, statements, and promotional materials. Software and Technology develop and markets its software products related to multi-channel marketing communications including digital asset management, communication templates, campaign management, document archiving, document composition, and desktop mail solutions among others. Its outsourced services elements are the post, freight, paper, and envelopes.
64GF Score
Get the complete analysis for NZSE:SDL
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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