Constellation TechnologiesASX:CT1 Return-on-Tangible-Equity is 42.26% as of Dec. 2025. The stock has 1 warning sign investors should review. Among 2,470 Software companies, Constellation Technologies ranks worse than 84.66% 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. Constellation Technologies's annualized net income for the quarter that ended in Dec. 2025 was A$0.14 Mil. Constellation Technologies's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$0.34 Mil. Therefore, Constellation Technologies's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 42.26%.
The historical rank and industry rank for Constellation Technologies's Return-on-Tangible-Equity or its related term are showing as below:
ASX:CT1'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -364.68 Med: -86.62 Max: 1.99
Current: -36.08
During the past 13 years, Constellation Technologies's highest Return-on-Tangible-Equity was 1.99%. The lowest was -364.68%. And the median was -86.62%.
ASX:CT1's Return-on-Tangible-Equity is ranked worse than 84.66% of 2470
companies
in the Software industry
Industry Median: 8.77
vs ASX:CT1: -36.08
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.
Constellation Technologies Return-on-Tangible-Equity Related Terms
Constellation Technologies Return-on-Tangible-Equity Historical Data
* 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.
ASX:CT1 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Constellation Technologies'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.
Constellation Technologies Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Constellation Technologies's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Constellation Technologies'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 42.26% mean?
Constellation Technologies (ASX:CT1) has a Return-on-Tangible-Equity of 42.26% 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 Constellation Technologies and its competitors. According to the industry distribution chart, Constellation Technologies ranks #2091 out of 2470 companies in the Software industry, placing it in the top 84.7%.
Is Constellation Technologies' Return-on-Tangible-Equity too high?
Constellation Technologies' current Return-on-Tangible-Equity is 42.26%. The Software industry median Return-on-Tangible-Equity is 8.77. Constellation Technologies' value of 42.26% is 381.9% above this industry median. Based on the distribution chart, Constellation Technologies ranks #2091 out of 2470 companies in the Software industry, which is in the bottom quartile relative to peers.
How does Constellation Technologies' Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Constellation Technologies ranks #2091 out of 2470 companies for Return-on-Tangible-Equity. This places Constellation Technologies in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.77. Constellation Technologies' value of 42.26% is 381.9% above this benchmark. 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 8.77, based on 2,470 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. Constellation Technologies's current Return-on-Tangible-Equity of 42.26% is 381.9% 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 Constellation Technologies and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Technologies's current Return-on-Tangible-Equity is 42.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Constellation Technologies stock overvalued right now?
Constellation Technologies (ASX:CT1) has a current Return-on-Tangible-Equity of 42.26%. The current Return-on-Tangible-Equity is 42.26% and 381.9% above the Software industry median of 8.77. 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 Constellation Technologies (ASX:CT1), the current Return-on-Tangible-Equity is 42.26% 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.
Constellation Technologies Ltd specializes in innovation solutions to market that leverage cloud, internet of things (IoT), edge computing sensors, big data, analytics, machine learning (ML), artificial intelligence (AI), and other technologies. The Group has identified one reportable segment, which is the sale and commercialisation of IoT Solutions within Australia. The company generates revenue from Monitor tag revenue, Monitoring revenue, Consulting revenue, and Labour-hire revenue. The company generates the majority of its revenue from monitoring revenue.
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