Airtel AfricaAARTY 65 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates AARTY with a GF Score™ of 65/100 and a GF Value™ of $16.20 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 327 Telecommunication Services companies, Airtel Africa ranks better than 99.69% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Airtel Africa's annualized net income for the quarter that ended in Mar. 2026 was $796 Mil. Airtel Africa's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-1,092 Mil. Therefore, Airtel Africa's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Airtel Africa's Return-on-Tangible-Equity or its related term are showing as below:
AARTY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
AARTY's Return-on-Tangible-Equity is ranked better than 99.69% of 327
companies
in the Telecommunication Services industry
Industry Median: 13.99
vs AARTY: Negative Tangible Equity
Airtel Africa (OTCPK:AARTY) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Airtel Africa Return-on-Tangible-Equity Related Terms
Airtel Africa Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Airtel Africa's Return-on-Tangible-Equity 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.
AARTY vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Airtel Africa's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Airtel Africa Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Airtel Africa's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Airtel Africa's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Airtel Africa (AARTY) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Airtel Africa and its competitors. According to the industry distribution chart, Airtel Africa ranks #1 out of 327 companies in the Telecommunication Services industry, placing it in the top 0.3%.
Is Airtel Africa's Return-on-Tangible-Equity too high?
Airtel Africa's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Airtel Africa ranks #1 out of 327 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Airtel Africa has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Airtel Africa's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Airtel Africa ranks #1 out of 327 companies for Return-on-Tangible-Equity. This places Airtel Africa in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 13.99. 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-Equity for a Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 13.99, based on 327 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Airtel Africa and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 13.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Airtel Africa's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Airtel Africa stock overvalued right now?
Based on GuruFocus' analysis, Airtel Africa (AARTY) is currently considered Significantly Overvalued. The stock's GF Value™ is $16.20, compared to a current price of $45.37 — trading 180% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Airtel Africa's overall GF Score™ is 65/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Airtel Africa (AARTY), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Airtel Africa (AARTY) Overvalued in 2026?
Based on GuruFocus' analysis, Airtel Africa stock appears to be overvalued.
The current stock price of $45.37 is trading 180% above its estimated GF Value™ of $16.20.
GuruFocus considers Airtel Africa to be Significantly Overvalued.
No single metric tells the full story. See the AARTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Airtel Africa PLC is a telecoms and financial services provider transforming lives across the continent through increased digital and financial inclusion. The principal activities of the Group mainly consist of the provision of telecommunications and mobile money services. Its services include Voice, Data, Mobile money, Enterprise, and Data centers. The Group's operating segments are Nigeria mobile services, East Africa mobile services, Francophone Africa mobile services, and Mobile money. It generates maximum revenue from East Africa mobile services, comprising mobile service operations in Uganda, Kenya, Zambia, Tanzania, Malawi, and Rwanda.
65GF Score
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