Space42ADX:SPACE42 -0.55%87 Return-on-Tangible-Equity is 1.76% as of Mar. 2026, which is 93% below its 10-year median of 24.87. GuruFocus rates ADX:SPACE42 with a GF Score™ of 87/100 and a GF Value™ of د.إ2.18 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,467 Software companies, Space42 ranks worse than 75.44% 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. Space42's annualized net income for the quarter that ended in Mar. 2026 was د.إ68 Mil. Space42's average shareholder tangible equity for the quarter that ended in Mar. 2026 was د.إ3,865 Mil. Therefore, Space42's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 1.76%.
The historical rank and industry rank for Space42's Return-on-Tangible-Equity or its related term are showing as below:
ADX:SPACE42'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8.88 Med: 24.87 Max: 155.75
Current: -8.88
During the past 7 years, Space42's highest Return-on-Tangible-Equity was 155.75%. The lowest was -8.88%. And the median was 24.87%.
ADX:SPACE42's Return-on-Tangible-Equity is ranked worse than 75.44% of 2467
companies
in the Software industry
Industry Median: 8.62
vs ADX:SPACE42: -8.88
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.
Space42 Return-on-Tangible-Equity Related Terms
Space42 Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Space42'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.
ADX:SPACE42 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Space42'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.
Space42 Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Space42's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Space42'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 1.76% mean?
Space42 (ADX:SPACE42) has a Return-on-Tangible-Equity of 1.76% 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 Space42 and its competitors. This is 93% below median its historical median of 24.87. According to the industry distribution chart, Space42 ranks #1861 out of 2467 companies in the Software industry, placing it in the top 75.4%.
Is Space42's Return-on-Tangible-Equity too high?
Space42's current Return-on-Tangible-Equity of 1.76% is 93% below median its 10-year median of 24.87. The Software industry median Return-on-Tangible-Equity is 8.62. Space42's value of 1.76% is 79.6% below this industry median. Based on the distribution chart, Space42 ranks #1861 out of 2467 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Space42 has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Space42's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Space42 ranks #1861 out of 2467 companies for Return-on-Tangible-Equity. This places Space42 in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.62. Space42's value of 1.76% is 79.6% below this benchmark. While the company's 10-year median is 24.87 vs. the industry median of 8.62, Space42 has consistently been below 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 8.62, based on 2,467 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. Space42's current Return-on-Tangible-Equity of 1.76% is 79.6% below 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 Space42 and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Space42's current Return-on-Tangible-Equity is 1.76%, which is 93% below median its own 10-year median of 24.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Space42 stock overvalued right now?
Based on GuruFocus' analysis, Space42 (ADX:SPACE42) is currently considered Modestly Undervalued. The stock's GF Value™ is د.إ2.18, compared to a current price of د.إ1.80 — trading 17.4% below its estimated fair value. The current Return-on-Tangible-Equity is 1.76%, which is 93% below median its 10-year median of 24.87 and 79.6% below the Software industry median of 8.62. Space42's overall GF Score™ is 87/100 with 6 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 Space42 (ADX:SPACE42), the current Return-on-Tangible-Equity is 1.76% 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 Space42 (ADX:SPACE42) Overvalued in 2026?
Based on GuruFocus' analysis, Space42 stock appears to be undervalued.
The current stock price of د.إ1.80 is trading 17.4% below its estimated GF Value™ of د.إ2.18.
GuruFocus considers Space42 to be Modestly Undervalued.
Key valuation signals for ADX:SPACE42:
Return-on-Tangible-Equity: 1.76% (93% below median its 10-year median of 24.87)
GF Value™: د.إ2.18 vs. price of د.إ1.80 (17.4% below fair value)
Industry Position: 79.6% below the Software median (#1861 of 2467)
No single metric tells the full story. See the ADX:SPACE42 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Space42 PLC is a UAE-based AI-powered space tech group that integrates satellite communications, geospatial insights, and artificial intelligence capabilities for customers globally. Its operating segments are: Space Services and Smart Solutions. The majority of the group's revenue is generated by the Space Services segment, which provides secure satellite communication solutions for government and mission-critical applications, reliable mobility and communication solutions, and high-speed data connectivity. The Smart Solutions business provides earth observation, geospatial, and industry-specific solutions using an AI-driven multi-intelligence platform, GIQ. Geographically, the group derives maximum revenue from the UAE, followed by Asia, Africa, Europe, North America, and other regions.
87GF Score
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