Rede Energia ParticipacoesBSP:REDE3 73 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates BSP:REDE3 with a GF Score™ of 73/100 and a GF Value™ of R$5.99 (Fairly Valued). The stock has 7 warning signs investors should review. Among 497 Utilities - Regulated companies, Rede Energia Participacoes ranks better than 99.8% 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. Rede Energia Participacoes's annualized net income for the quarter that ended in Mar. 2026 was R$1,203 Mil. Rede Energia Participacoes's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$-1,937 Mil. Therefore, Rede Energia Participacoes's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Rede Energia Participacoes's Return-on-Tangible-Equity or its related term are showing as below:
BSP:REDE3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
BSP:REDE3's Return-on-Tangible-Equity is ranked better than 99.8% of 497
companies
in the Utilities - Regulated industry
Industry Median: 10.92
vs BSP:REDE3: Negative Tangible Equity
Rede Energia Participacoes (BSP:REDE3) 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.
Rede Energia Participacoes Return-on-Tangible-Equity Related Terms
Rede Energia Participacoes 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.
Rede Energia Participacoes Return-on-Tangible-Equity Chart
BSP:REDE3 vs NEE, SO, DUK: Return-on-Tangible-Equity Comparison
For the Utilities - Regulated Electric subindustry, Rede Energia Participacoes'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.
Rede Energia Participacoes Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Rede Energia Participacoes's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rede Energia Participacoes'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 Negative Tangible Equity% mean?
Rede Energia Participacoes (BSP:REDE3) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Rede Energia Participacoes and its competitors. According to the industry distribution chart, Rede Energia Participacoes ranks #1 out of 497 companies in the Utilities - Regulated industry, placing it in the top 0.2%.
Is Rede Energia Participacoes' Return-on-Tangible-Equity too high?
Rede Energia Participacoes' current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Rede Energia Participacoes ranks #1 out of 497 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Rede Energia Participacoes has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rede Energia Participacoes' Return-on-Tangible-Equity compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Rede Energia Participacoes ranks #1 out of 497 companies for Return-on-Tangible-Equity. This places Rede Energia Participacoes in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.92. 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 Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.92, based on 497 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 Rede Energia Participacoes and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rede Energia Participacoes's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rede Energia Participacoes stock overvalued right now?
Based on GuruFocus' analysis, Rede Energia Participacoes (BSP:REDE3) is currently considered Fairly Valued. The stock's GF Value™ is R$5.99, compared to a current price of R$5.89 — trading 1.7% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Rede Energia Participacoes' overall GF Score™ is 73/100 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 Rede Energia Participacoes (BSP:REDE3), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Rede Energia Participacoes (BSP:REDE3) Overvalued in 2026?
Based on GuruFocus' analysis, Rede Energia Participacoes stock appears to be undervalued.
The current stock price of R$5.89 is trading 1.7% below its estimated GF Value™ of R$5.99.
GuruFocus considers Rede Energia Participacoes to be Fairly Valued.
No single metric tells the full story. See the BSP:REDE3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rede Energia Participacoes SA along with its subsidiaries generates, distributes and markets electrical energy as well as provides services related to electricity sector. It provides its services to residential, commercial, industrial, rural and public customers.
73GF Score
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