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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. Quality and Reliability's annualized net income for the quarter that ended in Dec. 2025 was €-0.23 Mil. Quality and Reliability's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €0.66 Mil. Therefore, Quality and Reliability's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -34.69%.
The historical rank and industry rank for Quality and Reliability's Return-on-Tangible-Equity or its related term are showing as below:
ATH:QUAL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -47.23 Med: -9.52 Max: 62.86
Current: 62.86
During the past 13 years, Quality and Reliability's highest Return-on-Tangible-Equity was 62.86%. The lowest was -47.23%. And the median was -9.52%.
ATH:QUAL's Return-on-Tangible-Equity is ranked better than 84.86% of 2483
companies
in the Software industry
Industry Median: 9.69
vs ATH:QUAL: 62.86
Quality and Reliability (ATH:QUAL) 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.
Quality and Reliability Return-on-Tangible-Equity Related Terms
Quality and Reliability Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Quality and Reliability'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.
Quality and Reliability Return-on-Tangible-Equity Chart
ATH:QUAL vs QH, SHOP, UBER: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Quality and Reliability'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.
Quality and Reliability Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Quality and Reliability's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Quality and Reliability'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 -34.69% mean?
Quality and Reliability (ATH:QUAL) has a Return-on-Tangible-Equity of -34.69% 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 Quality and Reliability and its competitors. According to the industry distribution chart, Quality and Reliability ranks #376 out of 2483 companies in the Software industry, placing it in the top 15.1%.
Is Quality and Reliability's Return-on-Tangible-Equity too high?
Quality and Reliability's current Return-on-Tangible-Equity is -34.69%. Based on the distribution chart, Quality and Reliability ranks #376 out of 2483 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Quality and Reliability has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Quality and Reliability's Return-on-Tangible-Equity compare to QH and SHOP?
According to the Software industry distribution chart, Quality and Reliability ranks #376 out of 2483 companies for Return-on-Tangible-Equity. This places Quality and Reliability in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.69. 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 9.69, based on 2,483 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 Quality and Reliability and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Quality and Reliability's current Return-on-Tangible-Equity is -34.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Quality and Reliability stock overvalued right now?
Based on GuruFocus' analysis, Quality and Reliability (ATH:QUAL) is currently considered Possible Value Trap. The stock's GF Value™ is €2.06, compared to a current price of €1.30 — trading 36.7% below its estimated fair value. The current Return-on-Tangible-Equity is -34.69%. Quality and Reliability's overall GF Score™ is 77/100 with 7 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 Quality and Reliability (ATH:QUAL), the current Return-on-Tangible-Equity is -34.69% 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 Quality and Reliability (ATH:QUAL) Overvalued in 2026?
Based on GuruFocus' analysis, Quality and Reliability stock appears to be undervalued.
The current stock price of €1.30 is trading 36.7% below its estimated GF Value™ of €2.06.
GuruFocus considers Quality and Reliability to be Possible Value Trap.
Key valuation signals for ATH:QUAL:
Return-on-Tangible-Equity: -34.69%
GF Value™: €2.06 vs. price of €1.30 (36.7% below fair value)
No single metric tells the full story. See the ATH:QUAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Quality and Reliability SA is engaged in software development and in the provision of integration services for information systems. The company delivers complex Integrated Information Systems for large and mid-size enterprises in the public and private sectors, cutting-edge technology solutions for Financial Institutions, Enterprise web Portals, white label e-Bookstore platforms & label e-commerce solutions, cross-platform Mobile Applications and multi-platform eBook interactive educational authoring tools.
77GF Score
Get the complete analysis for ATH:QUAL
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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