74SoftwareXPAR:74SW -0.56%71 Return-on-Tangible-Asset is 12.66% as of Dec. 2025, which is 129% above its 10-year median of 5.53. GuruFocus rates XPAR:74SW with a GF Score™ of 71/100 and a GF Value™ of €40.08 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,886 Software companies, 74Software ranks better than 68.95% 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. 74Software's annualizedNet Income for the quarter that ended in Dec. 2025 was €69.9 Mil. 74Software's average total tangible assets for the quarter that ended in Dec. 2025 was €552.2 Mil. Therefore, 74Software's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 12.66%.
The historical rank and industry rank for 74Software's Return-on-Tangible-Asset or its related term are showing as below:
XPAR:74SW'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -16.54 Med: 5.53 Max: 15.17
Current: 7.38
During the past 13 years, 74Software's highest Return-on-Tangible-Asset was 15.17%. The lowest was -16.54%. And the median was 5.53%.
XPAR:74SW's Return-on-Tangible-Asset is ranked better than 68.95% of 2886
companies
in the Software industry
Industry Median: 2.035
vs XPAR:74SW: 7.38
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.
74Software Return-on-Tangible-Asset Related Terms
74Software Return-on-Tangible-Asset Historical Data
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The historical data trend for 74Software'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.
XPAR:74SW vs UBER, SHOP, CRM: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, 74Software'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.
74Software Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, 74Software's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where 74Software'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 12.66% mean?
74Software (XPAR:74SW) has a Return-on-Tangible-Asset of 12.66% 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 74Software and its competitors. This is 129% above median its historical median of 5.53. According to the industry distribution chart, 74Software ranks #896 out of 2886 companies in the Software industry, placing it in the top 31%.
Is 74Software's Return-on-Tangible-Asset too high?
74Software's current Return-on-Tangible-Asset of 12.66% is 129% above median its 10-year median of 5.53. The Software industry median Return-on-Tangible-Asset is 2.04. 74Software's value of 12.66% is 522.1% above this industry median. Based on the distribution chart, 74Software ranks #896 out of 2886 companies in the Software industry, which is above the industry midpoint. Overall, 74Software has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does 74Software's Return-on-Tangible-Asset compare to UBER and SHOP?
According to the Software industry distribution chart, 74Software ranks #896 out of 2886 companies for Return-on-Tangible-Asset. This puts 74Software in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.04. 74Software's value of 12.66% is 522.1% above this benchmark. While the company's 10-year median is 5.53 vs. the industry median of 2.04, 74Software 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 2.04, based on 2,886 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. 74Software's current Return-on-Tangible-Asset of 12.66% is 522.1% 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 74Software 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. 74Software's current Return-on-Tangible-Asset is 12.66%, which is 129% above median its own 10-year median of 5.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 74Software stock overvalued right now?
Based on GuruFocus' analysis, 74Software (XPAR:74SW) is currently considered Modestly Undervalued. The stock's GF Value™ is €40.08, compared to a current price of €35.70 — trading 10.9% below its estimated fair value. The current Return-on-Tangible-Asset is 12.66%, which is 129% above median its 10-year median of 5.53 and 522.1% above the Software industry median of 2.04. 74Software's overall GF Score™ is 71/100 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 74Software (XPAR:74SW), the current Return-on-Tangible-Asset is 12.66% 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 74Software (XPAR:74SW) Overvalued in 2026?
Based on GuruFocus' analysis, 74Software stock appears to be undervalued.
The current stock price of €35.70 is trading 10.9% below its estimated GF Value™ of €40.08.
GuruFocus considers 74Software to be Modestly Undervalued.
Key valuation signals for XPAR:74SW:
Return-on-Tangible-Asset: 12.66% (129% above median its 10-year median of 5.53)
GF Value™: €40.08 vs. price of €35.70 (10.9% below fair value)
Industry Position: 522.1% above the Software median (#896 of 2886)
No single metric tells the full story. See the XPAR:74SW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
74Software operates a portfolio of enterprise software solutions through brands like Axway and SBS, which are used across different industries. Its portfolio of software solutions specializes in Managed File Transfer (MFT), API Management (APIM), and B2B integration, among other specialised products. Additionally, the Group offers integrated banking software products that offer transaction, account, compliance, and risk management solutions; a SaaS banking platform; and other solutions across the payments, lending, and processing space. Its operating segments are: SBS, which generates the maximum revenue, and Axway. Geographically, the Group generates maximum revenue from Europe, and the rest from the Americas, Middle East and Africa, and Asia-Pacific region.
71GF Score
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