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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. TextMagic AS's annualizedNet Income for the quarter that ended in Dec. 2025 was €-3.71 Mil. TextMagic AS's average total tangible assets for the quarter that ended in Dec. 2025 was €4.70 Mil. Therefore, TextMagic AS's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was -79.07%.
The historical rank and industry rank for TextMagic AS's Return-on-Tangible-Asset or its related term are showing as below:
OTSE:MAGIC'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -254.6 Med: -7.41 Max: 37.46
Current: -43.03
During the past 5 years, TextMagic AS's highest Return-on-Tangible-Asset was 37.46%. The lowest was -254.60%. And the median was -7.41%.
OTSE:MAGIC's Return-on-Tangible-Asset is ranked worse than 84.37% of 2892
companies
in the Software industry
Industry Median: 2.04
vs OTSE:MAGIC: -43.03
TextMagic AS (OTSE:MAGIC) 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.
TextMagic AS Return-on-Tangible-Asset Related Terms
TextMagic AS Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for TextMagic AS'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.
OTSE:MAGIC vs QH, SHOP, UBER: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, TextMagic AS'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.
TextMagic AS Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, TextMagic AS's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where TextMagic AS'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 -79.07% mean?
TextMagic AS (OTSE:MAGIC) has a Return-on-Tangible-Asset of -79.07% 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 TextMagic AS and its competitors. According to the industry distribution chart, TextMagic AS ranks #2440 out of 2892 companies in the Software industry, placing it in the top 84.4%.
Is TextMagic AS's Return-on-Tangible-Asset too high?
TextMagic AS's current Return-on-Tangible-Asset is -79.07%. Based on the distribution chart, TextMagic AS ranks #2440 out of 2892 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, TextMagic AS has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does TextMagic AS's Return-on-Tangible-Asset compare to QH and SHOP?
According to the Software industry distribution chart, TextMagic AS ranks #2440 out of 2892 companies for Return-on-Tangible-Asset. This places TextMagic AS in the lower half of its industry. The industry median Return-on-Tangible-Asset is 2.04. 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 2.04, based on 2,892 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. 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 TextMagic AS and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TextMagic AS's current Return-on-Tangible-Asset is -79.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TextMagic AS stock overvalued right now?
Based on GuruFocus' analysis, TextMagic AS (OTSE:MAGIC) is currently considered Possible Value Trap. The stock's GF Value™ is €3.78, compared to a current price of €1.79 — trading 52.6% below its estimated fair value. The current Return-on-Tangible-Asset is -79.07%. TextMagic AS's overall GF Score™ is 61/100 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 TextMagic AS (OTSE:MAGIC), the current Return-on-Tangible-Asset is -79.07% 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 TextMagic AS (OTSE:MAGIC) Overvalued in 2026?
Based on GuruFocus' analysis, TextMagic AS stock appears to be undervalued.
The current stock price of €1.79 is trading 52.6% below its estimated GF Value™ of €3.78.
GuruFocus considers TextMagic AS to be Possible Value Trap.
Key valuation signals for OTSE:MAGIC:
Return-on-Tangible-Asset: -79.07%
GF Value™: €3.78 vs. price of €1.79 (52.6% below fair value)
No single metric tells the full story. See the OTSE:MAGIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TextMagic AS is a text messaging company that helps businesses engage with customers. The Group's activities include the management and development of software products. The company operates mainly in the U.S., the U.K., Canada, Australia, and other countries. TextMagic enables companies to transform customer experiences through its text messaging marketing software, which can be used to send notifications, alerts, reminders, confirmations, and SMS marketing campaigns anytime, anywhere. Its product and service lines include text messaging services, which generate maximum revenue, virtual mobile number services, other TextMagic platform services, and the Voog.com platform. The company derives the majority of its revenue from the United States.
61GF Score
Get the complete analysis for OTSE:MAGIC
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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