Adtran Networks SEADVOF 55 Return-on-Tangible-Equity is 10.83% as of Dec. 2025, which is 7% below its 10-year median of 11.62. GuruFocus rates ADVOF with a GF Score™ of 55/100 and a GF Value™ of $21.22. The stock has 4 warning signs investors should review. Among 2,381 Hardware companies, Adtran Networks SE ranks worse than 83.87% 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. Adtran Networks SE's annualized net income for the quarter that ended in Dec. 2025 was $22.1 Mil. Adtran Networks SE's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $203.9 Mil. Therefore, Adtran Networks SE's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 10.83%.
The historical rank and industry rank for Adtran Networks SE's Return-on-Tangible-Equity or its related term are showing as below:
ADVOF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -32.16 Med: 11.62 Max: 52.11
Current: -12.03
During the past 13 years, Adtran Networks SE's highest Return-on-Tangible-Equity was 52.11%. The lowest was -32.16%. And the median was 11.62%.
ADVOF's Return-on-Tangible-Equity is ranked worse than 83.87% of 2381
companies
in the Hardware industry
Industry Median: 5.23
vs ADVOF: -12.03
Adtran Networks SE (OTCPK:ADVOF) 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.
Adtran Networks SE Return-on-Tangible-Equity Related Terms
Adtran Networks SE Return-on-Tangible-Equity Historical Data
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The historical data trend for Adtran Networks SE'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.
Adtran Networks SE Return-on-Tangible-Equity Chart
ADVOF vs CSCO, CIEN, MSI: Return-on-Tangible-Equity Comparison
For the Communication Equipment subindustry, Adtran Networks SE'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.
Adtran Networks SE Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Adtran Networks SE's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Adtran Networks SE'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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 10.83% mean?
Adtran Networks SE (ADVOF) has a Return-on-Tangible-Equity of 10.83% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Adtran Networks SE and its competitors. This is near median its historical median of 11.62. According to the industry distribution chart, Adtran Networks SE ranks #1997 out of 2381 companies in the Hardware industry, placing it in the top 83.9%.
Is Adtran Networks SE's Return-on-Tangible-Equity too high?
Adtran Networks SE's current Return-on-Tangible-Equity of 10.83% is near median its 10-year median of 11.62. The Hardware industry median Return-on-Tangible-Equity is 5.23. Adtran Networks SE's value of 10.83% is 107.1% above this industry median. Based on the distribution chart, Adtran Networks SE ranks #1997 out of 2381 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Adtran Networks SE has a GF Score™ of 55/100, reflecting its overall financial health beyond just this single metric.
How does Adtran Networks SE's Return-on-Tangible-Equity compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Adtran Networks SE ranks #1997 out of 2381 companies for Return-on-Tangible-Equity. This places Adtran Networks SE in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.23. Adtran Networks SE's value of 10.83% is 107.1% above this benchmark. While the company's 10-year median is 11.62 vs. the industry median of 5.23, Adtran Networks SE 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-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.23, based on 2,381 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. Adtran Networks SE's current Return-on-Tangible-Equity of 10.83% is 107.1% 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-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 Adtran Networks SE and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adtran Networks SE's current Return-on-Tangible-Equity is 10.83%, which is near median its own 10-year median of 11.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adtran Networks SE stock overvalued right now?
Adtran Networks SE (ADVOF) has a current Return-on-Tangible-Equity of 10.83%. The stock's GF Value™ is $21.22, compared to a current price of $24.19 — trading 14% above its estimated fair value. The current Return-on-Tangible-Equity is 10.83%, which is near median its 10-year median of 11.62 and 107.1% above the Hardware industry median of 5.23. Adtran Networks SE's overall GF Score™ is 55/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Adtran Networks SE (ADVOF), the current Return-on-Tangible-Equity is 10.83% 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 Adtran Networks SE (ADVOF) Overvalued in 2026?
Based on GuruFocus' analysis, Adtran Networks SE stock appears to be overvalued.
The current stock price of $24.19 is trading 14% above its estimated GF Value™ of $21.22.
Key valuation signals for ADVOF:
Return-on-Tangible-Equity: 10.83% (near median its 10-year median of 11.62)
GF Value™: $21.22 vs. price of $24.19 (14% above fair value)
Industry Position: 107.1% above the Hardware median (#1997 of 2381)
No single metric tells the full story. See the ADVOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adtran Networks SE develops, manufactures, and sells optical and Ethernet-based networking solutions to telecommunications carriers and enterprises to deliver data, storage, voice, and video services. Company segment includes: Network Solutions; and Services and Support,These systems are used by telecommunications service providers, private companies, universities, and government agencies. Some of its product categories are Open optical transport, Packet edge and aggregation, Disaggregated networking, Network virtualization, Network infrastructure assurance, and Automated network management. ADVA's geographical segments are United States, United Kingdom, Germany and Other international generating key revenue from United States.
55GF Score
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