DatatecDTTLF 64 Return-on-Tangible-Equity is 48.74% as of Feb. 2026, which is 285% above its 10-year median of 12.67. GuruFocus rates DTTLF with a GF Score™ of 64/100 and a GF Value™ of $1.81 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,470 Software companies, Datatec ranks better than 83.12% 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. Datatec's annualized net income for the quarter that ended in Feb. 2026 was $83 Mil. Datatec's average shareholder tangible equity for the quarter that ended in Feb. 2026 was $171 Mil. Therefore, Datatec's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 48.74%.
The historical rank and industry rank for Datatec's Return-on-Tangible-Equity or its related term are showing as below:
DTTLF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.94 Med: 12.67 Max: 50.83
Current: 50.83
During the past 13 years, Datatec's highest Return-on-Tangible-Equity was 50.83%. The lowest was 0.94%. And the median was 12.67%.
DTTLF's Return-on-Tangible-Equity is ranked better than 83.12% of 2470
companies
in the Software industry
Industry Median: 8.77
vs DTTLF: 50.83
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.
Datatec Return-on-Tangible-Equity Related Terms
Datatec Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Datatec'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.
DTTLF vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Datatec'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.
Datatec Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Datatec's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Datatec'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 two times the semi-annual (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 48.74% mean?
Datatec (DTTLF) has a Return-on-Tangible-Equity of 48.74% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Datatec and its competitors. This is 285% above median its historical median of 12.67. Over the past decade, Datatec's Return-on-Tangible-Equity has ranged from 0.94 to 50.83. According to the industry distribution chart, Datatec ranks #417 out of 2470 companies in the Software industry, placing it in the top 16.9%.
Is Datatec's Return-on-Tangible-Equity too high?
Datatec's current Return-on-Tangible-Equity of 48.74% is 285% above median its 10-year median of 12.67. Over the past 10 years, this metric has ranged from a low of 0.94 to a high of 50.83. The Software industry median Return-on-Tangible-Equity is 8.77. Datatec's value of 48.74% is 455.8% above this industry median. Based on the distribution chart, Datatec ranks #417 out of 2470 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Datatec has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Datatec's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Datatec ranks #417 out of 2470 companies for Return-on-Tangible-Equity. This places Datatec in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.77. Datatec's value of 48.74% is 455.8% above this benchmark. Historically, Datatec's own Return-on-Tangible-Equity has ranged from 0.94 to 50.83 over the past decade. While the company's 10-year median is 12.67 vs. the industry median of 8.77, Datatec 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 8.77, 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. Datatec's current Return-on-Tangible-Equity of 48.74% is 455.8% 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 Datatec and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Datatec's current Return-on-Tangible-Equity is 48.74%, which is 285% above median its own 10-year median of 12.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Datatec stock overvalued right now?
Based on GuruFocus' analysis, Datatec (DTTLF) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.81, compared to a current price of $5.58 — trading 208.3% above its estimated fair value. The current Return-on-Tangible-Equity is 48.74%, which is 285% above median its 10-year median of 12.67 and 455.8% above the Software industry median of 8.77. Datatec's overall GF Score™ is 64/100 with 5 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 Datatec (DTTLF), the current Return-on-Tangible-Equity is 48.74% as of Feb. 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 Datatec (DTTLF) Overvalued in 2026?
Based on GuruFocus' analysis, Datatec stock appears to be overvalued.
The current stock price of $5.58 is trading 208.3% above its estimated GF Value™ of $1.81.
GuruFocus considers Datatec to be Significantly Overvalued.
Key valuation signals for DTTLF:
Return-on-Tangible-Equity: 48.74% (285% above median its 10-year median of 12.67)
GF Value™: $1.81 vs. price of $5.58 (208.3% above fair value)
Industry Position: 455.8% above the Software median (#417 of 2470)
No single metric tells the full story. See the DTTLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Datatec Ltd is an international ICT solutions and services group operating in more than 50 countries across North America, Latin America, Europe, Africa, the Middle East, and Asia-Pacific. The Group's service offering spans the technology distribution and integration sectors of the ICT market. Its principal activities include Westcon International, which generates the majority of revenue and operates as a value-added technology distributor of cyber security, network infrastructure, unified collaboration products, data centre solutions, channel support services, and financing and leasing solutions for ICT customers, and Logicalis International and Logicalis Latin America, which provide digital services. The Company generates the majority of its revenue from Europe.
64GF Score
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