Padtec HoldingBSP:PDTC3 +5.97%66 Return-on-Tangible-Equity is 48.20% as of Mar. 2026, which is 104% above its 10-year median of 23.67. GuruFocus rates BSP:PDTC3 with a GF Score™ of 66/100 and a GF Value™ of R$1.52 (Fairly Valued). The stock has 6 warning signs investors should review. Among 2,377 Hardware companies, Padtec Holding ranks better than 90.66% 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. Padtec Holding's annualized net income for the quarter that ended in Mar. 2026 was R$31.2 Mil. Padtec Holding's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$64.7 Mil. Therefore, Padtec Holding's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 48.20%.
The historical rank and industry rank for Padtec Holding's Return-on-Tangible-Equity or its related term are showing as below:
BSP:PDTC3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -34.86 Med: 23.67 Max: 144.46
Current: 25.44
During the past 13 years, Padtec Holding's highest Return-on-Tangible-Equity was 144.46%. The lowest was -34.86%. And the median was 23.67%.
BSP:PDTC3's Return-on-Tangible-Equity is ranked better than 90.66% of 2377
companies
in the Hardware industry
Industry Median: 5.27
vs BSP:PDTC3: 25.44
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.
Padtec Holding Return-on-Tangible-Equity Related Terms
Padtec Holding Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Padtec Holding'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.
BSP:PDTC3 vs CSCO, CIEN, MSI: Return-on-Tangible-Equity Comparison
For the Communication Equipment subindustry, Padtec Holding'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.
Padtec Holding Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Padtec Holding's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Padtec Holding'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 48.20% mean?
Padtec Holding (BSP:PDTC3) has a Return-on-Tangible-Equity of 48.20% 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 Padtec Holding and its competitors. This is 104% above median its historical median of 23.67. According to the industry distribution chart, Padtec Holding ranks #222 out of 2377 companies in the Hardware industry, placing it in the top 9.3%.
Is Padtec Holding's Return-on-Tangible-Equity too high?
Padtec Holding's current Return-on-Tangible-Equity of 48.20% is 104% above median its 10-year median of 23.67. The Hardware industry median Return-on-Tangible-Equity is 5.27. Padtec Holding's value of 48.20% is 814.6% above this industry median. Based on the distribution chart, Padtec Holding ranks #222 out of 2377 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Padtec Holding has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Padtec Holding's Return-on-Tangible-Equity compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Padtec Holding ranks #222 out of 2377 companies for Return-on-Tangible-Equity. This places Padtec Holding in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.27. Padtec Holding's value of 48.20% is 814.6% above this benchmark. While the company's 10-year median is 23.67 vs. the industry median of 5.27, Padtec Holding 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 5.27, based on 2,377 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. Padtec Holding's current Return-on-Tangible-Equity of 48.20% is 814.6% 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 Padtec Holding and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Padtec Holding's current Return-on-Tangible-Equity is 48.20%, which is 104% above median its own 10-year median of 23.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Padtec Holding stock overvalued right now?
Based on GuruFocus' analysis, Padtec Holding (BSP:PDTC3) is currently considered Fairly Valued. The stock's GF Value™ is R$1.52, compared to a current price of R$1.42 — trading 6.6% below its estimated fair value. The current Return-on-Tangible-Equity is 48.20%, which is 104% above median its 10-year median of 23.67 and 814.6% above the Hardware industry median of 5.27. Padtec Holding's overall GF Score™ is 66/100 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 Padtec Holding (BSP:PDTC3), the current Return-on-Tangible-Equity is 48.20% 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 Padtec Holding (BSP:PDTC3) Overvalued in 2026?
Based on GuruFocus' analysis, Padtec Holding stock appears to be undervalued.
The current stock price of R$1.42 is trading 6.6% below its estimated GF Value™ of R$1.52.
GuruFocus considers Padtec Holding to be Fairly Valued.
Key valuation signals for BSP:PDTC3:
Return-on-Tangible-Equity: 48.20% (104% above median its 10-year median of 23.67)
GF Value™: R$1.52 vs. price of R$1.42 (6.6% below fair value)
Industry Position: 814.6% above the Hardware median (#222 of 2377)
No single metric tells the full story. See the BSP:PDTC3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Padtec Holding SA offers optical transmission solutions, based on DWDM technology. Its solutions and platform include Network backbones, Metropolitan Networks, SAN Extension, and DCI, MultiPad MPD-1200, LightPad i6400G, and others. The company provides its services to Government, Financial, Utilities and Integrator, IT and Multimedia, and others.
66GF Score
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