Renova EnergiaBSP:RNEW4 +2.60%51 Return-on-Tangible-Equity is -12.60% as of Mar. 2026. GuruFocus rates BSP:RNEW4 with a GF Score™ of 51/100 and a GF Value™ of R$1.22 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 426 Utilities - Independent Power Producers companies, Renova Energia ranks worse than 83.8% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Renova Energia's annualized net income for the quarter that ended in Mar. 2026 was R$-147.7 Mil. Renova Energia's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$1,171.8 Mil. Therefore, Renova Energia's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -12.60%.
The historical rank and industry rank for Renova Energia's Return-on-Tangible-Equity or its related term are showing as below:
BSP:RNEW4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -251.91 Med: -16.17 Max: 607.98
Current: -12.54
During the past 13 years, Renova Energia's highest Return-on-Tangible-Equity was 607.98%. The lowest was -251.91%. And the median was -16.17%.
BSP:RNEW4's Return-on-Tangible-Equity is ranked worse than 83.8% of 426
companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.695
vs BSP:RNEW4: -12.54
Renova Energia (BSP:RNEW4) 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.
Renova Energia Return-on-Tangible-Equity Related Terms
Renova Energia Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Renova Energia'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.
Renova Energia Return-on-Tangible-Equity Competitor Comparison
For the Utilities - Renewable subindustry, Renova Energia'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.
Renova Energia Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Renova Energia's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Renova Energia'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 -12.60% mean?
Renova Energia (BSP:RNEW4) has a Return-on-Tangible-Equity of -12.60% 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 Renova Energia and its competitors. According to the industry distribution chart, Renova Energia ranks #357 out of 426 companies in the Utilities - Independent Power Producers industry, placing it in the top 83.8%.
Is Renova Energia's Return-on-Tangible-Equity too high?
Renova Energia's current Return-on-Tangible-Equity is -12.60%. Based on the distribution chart, Renova Energia ranks #357 out of 426 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, Renova Energia has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Renova Energia's Return-on-Tangible-Equity compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Renova Energia ranks #357 out of 426 companies for Return-on-Tangible-Equity. This places Renova Energia in the lower half of its industry. The industry median Return-on-Tangible-Equity is 4.70. 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 - Independent Power Producers company?
The median Return-on-Tangible-Equity among Utilities - Independent Power Producers companies is 4.70, based on 426 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 Renova Energia and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Renova Energia's current Return-on-Tangible-Equity is -12.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renova Energia stock overvalued right now?
Based on GuruFocus' analysis, Renova Energia (BSP:RNEW4) is currently considered Possible Value Trap. The stock's GF Value™ is R$1.22, compared to a current price of R$0.79 — trading 35.2% below its estimated fair value. The current Return-on-Tangible-Equity is -12.60%. Renova Energia's overall GF Score™ is 51/100 with 3 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 Renova Energia (BSP:RNEW4), the current Return-on-Tangible-Equity is -12.60% 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 Renova Energia (BSP:RNEW4) Overvalued in 2026?
Based on GuruFocus' analysis, Renova Energia stock appears to be undervalued.
The current stock price of R$0.79 is trading 35.2% below its estimated GF Value™ of R$1.22.
GuruFocus considers Renova Energia to be Possible Value Trap.
Key valuation signals for BSP:RNEW4:
Return-on-Tangible-Equity: -12.60%
GF Value™: R$1.22 vs. price of R$0.79 (35.2% below fair value)
No single metric tells the full story. See the BSP:RNEW4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renova Energia SA is a Brazilian energy company engaged in the development, implementation, and operation of power generation projects from renewable sources - wind and solar, and trading of energy and related activities. The company is generating and trading electric power in all its forms, producing fuel from natural and renewable sources, providing logistics services to environmental advisory firms, and providing advisory services for energy solutions related to the generation, trading, transmission, and other businesses. The company has operating segments, namely: Wind, Solar, Trading, and Administrative. It derives maximum revenue from the Trading segment, which is engaged in energy trading in all its forms and management of the Company's energy purchase and sale contracts.
51GF Score
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