CoverCOVCF -2.45%58 Return-on-Tangible-Equity is -21.38% as of Mar. 2026. GuruFocus rates COVCF with a GF Score™ of 58/100 and a GF Value™ of $21.91 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,470 Software companies, Cover ranks better than 67.33% 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. Cover's annualized net income for the quarter that ended in Mar. 2026 was $-23.0 Mil. Cover's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $107.4 Mil. Therefore, Cover's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -21.38%.
The historical rank and industry rank for Cover's Return-on-Tangible-Equity or its related term are showing as below:
COVCF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 19.56 Med: 53.05 Max: 56.54
Current: 20.26
During the past 6 years, Cover's highest Return-on-Tangible-Equity was 56.54%. The lowest was 19.56%. And the median was 53.05%.
COVCF's Return-on-Tangible-Equity is ranked better than 67.33% of 2470
companies
in the Software industry
Industry Median: 8.775
vs COVCF: 20.26
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.
Cover Return-on-Tangible-Equity Related Terms
Cover Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Cover'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.
COVCF vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Cover'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.
Cover Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Cover's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Cover'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 -21.38% mean?
Cover (COVCF) has a Return-on-Tangible-Equity of -21.38% 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 Cover and its competitors. Over the past decade, Cover's Return-on-Tangible-Equity has ranged from 19.56 to 56.54. According to the industry distribution chart, Cover ranks #807 out of 2470 companies in the Software industry, placing it in the top 32.7%.
Is Cover's Return-on-Tangible-Equity too high?
Cover's current Return-on-Tangible-Equity is -21.38%. Over the past 10 years, this metric has ranged from a low of 19.56 to a high of 56.54. Based on the distribution chart, Cover ranks #807 out of 2470 companies in the Software industry, which is above the industry midpoint. Overall, Cover has a GF Score™ of 58/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cover's Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, Cover ranks #807 out of 2470 companies for Return-on-Tangible-Equity. This puts Cover in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.78. Historically, Cover's own Return-on-Tangible-Equity has ranged from 19.56 to 56.54 over the past decade. 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 8.78, based on 2,470 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 Cover and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cover's current Return-on-Tangible-Equity is -21.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cover stock overvalued right now?
Based on GuruFocus' analysis, Cover (COVCF) is currently considered Significantly Undervalued. The stock's GF Value™ is $21.91, compared to a current price of $7.95 — trading 63.7% below its estimated fair value. The current Return-on-Tangible-Equity is -21.38%. Cover's overall GF Score™ is 58/100 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 Cover (COVCF), the current Return-on-Tangible-Equity is -21.38% 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 Cover (COVCF) Overvalued in 2026?
Based on GuruFocus' analysis, Cover stock appears to be undervalued.
The current stock price of $7.95 is trading 63.7% below its estimated GF Value™ of $21.91.
GuruFocus considers Cover to be Significantly Undervalued.
Key valuation signals for COVCF:
Return-on-Tangible-Equity: -21.38%
GF Value™: $21.91 vs. price of $7.95 (63.7% below fair value)
No single metric tells the full story. See the COVCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cover Corp operates as a platformer for two-dimensional entertainment. It is engaged in developing multifaceted businesses to accelerate 2D entertainment such as distribution system development, VTuber office management, and content development.
58GF Score
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