Fortum OyjFOJCF 65 Return-on-Tangible-Equity is 21.43% as of Mar. 2026, which is 194% above its 10-year median of 7.29. GuruFocus rates FOJCF with a GF Score™ of 65/100 and a GF Value™ of $13.86 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 426 Utilities - Independent Power Producers companies, Fortum Oyj ranks better than 66.9% 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. Fortum Oyj's annualized net income for the quarter that ended in Mar. 2026 was $1,947 Mil. Fortum Oyj's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $9,085 Mil. Therefore, Fortum Oyj's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 21.43%.
The historical rank and industry rank for Fortum Oyj's Return-on-Tangible-Equity or its related term are showing as below:
FOJCF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -28.46 Med: 7.29 Max: 16.19
Current: 10.33
During the past 13 years, Fortum Oyj's highest Return-on-Tangible-Equity was 16.19%. The lowest was -28.46%. And the median was 7.29%.
FOJCF's Return-on-Tangible-Equity is ranked better than 66.9% of 426
companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.69
vs FOJCF: 10.33
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.
Fortum Oyj Return-on-Tangible-Equity Related Terms
Fortum Oyj Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Fortum Oyj'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.
For the Utilities - Renewable subindustry, Fortum Oyj'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.
Fortum Oyj Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Fortum Oyj's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Fortum Oyj'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 21.43% mean?
Fortum Oyj (FOJCF) has a Return-on-Tangible-Equity of 21.43% 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 Fortum Oyj and its competitors. This is 194% above median its historical median of 7.29. According to the industry distribution chart, Fortum Oyj ranks #141 out of 426 companies in the Utilities - Independent Power Producers industry, placing it in the top 33.1%.
Is Fortum Oyj's Return-on-Tangible-Equity too high?
Fortum Oyj's current Return-on-Tangible-Equity of 21.43% is 194% above median its 10-year median of 7.29. The Utilities - Independent Power Producers industry median Return-on-Tangible-Equity is 4.69. Fortum Oyj's value of 21.43% is 356.9% above this industry median. Based on the distribution chart, Fortum Oyj ranks #141 out of 426 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Fortum Oyj has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fortum Oyj's Return-on-Tangible-Equity compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Fortum Oyj ranks #141 out of 426 companies for Return-on-Tangible-Equity. This puts Fortum Oyj in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.69. Fortum Oyj's value of 21.43% is 356.9% above this benchmark. While the company's 10-year median is 7.29 vs. the industry median of 4.69, Fortum Oyj 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 an Utilities - Independent Power Producers company?
The median Return-on-Tangible-Equity among Utilities - Independent Power Producers companies is 4.69, 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. Fortum Oyj's current Return-on-Tangible-Equity of 21.43% is 356.9% 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 Fortum Oyj and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fortum Oyj's current Return-on-Tangible-Equity is 21.43%, which is 194% above median its own 10-year median of 7.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fortum Oyj stock overvalued right now?
Based on GuruFocus' analysis, Fortum Oyj (FOJCF) is currently considered Significantly Overvalued. The stock's GF Value™ is $13.86, compared to a current price of $22.79 — trading 64.4% above its estimated fair value. The current Return-on-Tangible-Equity is 21.43%, which is 194% above median its 10-year median of 7.29 and 356.9% above the Utilities - Independent Power Producers industry median of 4.69. Fortum Oyj's overall GF Score™ is 65/100 with 4 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 Fortum Oyj (FOJCF), the current Return-on-Tangible-Equity is 21.43% 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 Fortum Oyj (FOJCF) Overvalued in 2026?
Based on GuruFocus' analysis, Fortum Oyj stock appears to be overvalued.
The current stock price of $22.79 is trading 64.4% above its estimated GF Value™ of $13.86.
GuruFocus considers Fortum Oyj to be Significantly Overvalued.
Key valuation signals for FOJCF:
Return-on-Tangible-Equity: 21.43% (194% above median its 10-year median of 7.29)
GF Value™: $13.86 vs. price of $22.79 (64.4% above fair value)
Industry Position: 356.9% above the Utilities - Independent Power Producers median (#141 of 426)
No single metric tells the full story. See the FOJCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fortum Oyj is a Finnish energy company that operates power plants that use renewable energy sources (hydro, nuclear, and solar power) to sell electricity, heat, cooling, and power products and services. The company mainly operates in Nordic and Baltic countries, Russia, Poland, and India. Its main divisions of the company are generation (large-scale power production), city solutions (sustainable energy solutions), Russia (all Russian operations), technology and new ventures (research and development and in-house incubator for startups), mergers and acquisitions, and solar and wind development. The company's operating segments are Generation, Consumer Solutions, and Other Operations.
65GF Score
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