Avio SpAAVVOF -4.41%53 Return-on-Tangible-Equity is 13.15% as of Dec. 2025, which is 98% above its 10-year median of 6.64. GuruFocus rates AVVOF with a GF Score™ of 53/100 and a GF Value™ of $15.95 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 334 Aerospace & Defense companies, Avio SpA ranks worse than 56.89% 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. Avio SpA's annualized net income for the quarter that ended in Dec. 2025 was $47.9 Mil. Avio SpA's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $364.6 Mil. Therefore, Avio SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 13.15%.
The historical rank and industry rank for Avio SpA's Return-on-Tangible-Equity or its related term are showing as below:
AVVOF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.39 Med: 6.64 Max: 24.31
Current: 5.18
During the past 12 years, Avio SpA's highest Return-on-Tangible-Equity was 24.31%. The lowest was -0.39%. And the median was 6.64%.
AVVOF's Return-on-Tangible-Equity is ranked worse than 56.89% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs AVVOF: 5.18
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.
Avio SpA Return-on-Tangible-Equity Related Terms
Avio SpA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Avio SpA'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.
AVVOF vs GE, RTX, BA: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Avio SpA'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.
Avio SpA Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Avio SpA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Avio SpA'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 (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 13.15% mean?
Avio SpA (AVVOF) has a Return-on-Tangible-Equity of 13.15% 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 Avio SpA and its competitors. This is 98% above median its historical median of 6.64. According to the industry distribution chart, Avio SpA ranks #190 out of 334 companies in the Aerospace & Defense industry, placing it in the top 56.9%.
Is Avio SpA's Return-on-Tangible-Equity too high?
Avio SpA's current Return-on-Tangible-Equity of 13.15% is 98% above median its 10-year median of 6.64. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.20. Avio SpA's value of 13.15% is 60.5% above this industry median. Based on the distribution chart, Avio SpA ranks #190 out of 334 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Avio SpA has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avio SpA's Return-on-Tangible-Equity compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Avio SpA ranks #190 out of 334 companies for Return-on-Tangible-Equity. This places Avio SpA in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.20. Avio SpA's value of 13.15% is 60.5% above this benchmark. While the company's 10-year median is 6.64 vs. the industry median of 8.20, Avio SpA 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 an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 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. Avio SpA's current Return-on-Tangible-Equity of 13.15% is 60.5% 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 Avio SpA and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avio SpA's current Return-on-Tangible-Equity is 13.15%, which is 98% above median its own 10-year median of 6.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avio SpA stock overvalued right now?
Based on GuruFocus' analysis, Avio SpA (AVVOF) is currently considered Significantly Overvalued. The stock's GF Value™ is $15.95, compared to a current price of $34.87 — trading 118.6% above its estimated fair value. The current Return-on-Tangible-Equity is 13.15%, which is 98% above median its 10-year median of 6.64 and 60.5% above the Aerospace & Defense industry median of 8.20. Avio SpA's overall GF Score™ is 53/100 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 Avio SpA (AVVOF), the current Return-on-Tangible-Equity is 13.15% 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 Avio SpA (AVVOF) Overvalued in 2026?
Based on GuruFocus' analysis, Avio SpA stock appears to be overvalued.
The current stock price of $34.87 is trading 118.6% above its estimated GF Value™ of $15.95.
GuruFocus considers Avio SpA to be Significantly Overvalued.
Key valuation signals for AVVOF:
Return-on-Tangible-Equity: 13.15% (98% above median its 10-year median of 6.64)
GF Value™: $15.95 vs. price of $34.87 (118.6% above fair value)
Industry Position: 60.5% above the Aerospace & Defense median (#190 of 334)
No single metric tells the full story. See the AVVOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avio SpA is an international group engaged in the construction and development of space launchers. The company's core operations are design, development and production of solid and liquid propellant propulsion systems for space launchers; design, development and production of solid propellant propulsion systems for tactical missiles; development, integration and supply of complete light space launchers (VEGA); research and development of new low environmental impact propulsion systems and of satellite tracking control engines. The Group mainly operates in EU countries (Italy, France), the USA, and French Guiana.
53GF Score
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