Elkem ASAFRA:1DP +1.09%62 Return-on-Tangible-Equity is 0.48% as of Mar. 2026, which is 95% below its 10-year median of 9.85. GuruFocus rates FRA:1DP with a GF Score™ of 62/100 and a GF Value™ of €1.41 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,566 Chemicals companies, Elkem ASA ranks worse than 77.46% 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. Elkem ASA's annualized net income for the quarter that ended in Mar. 2026 was €10 Mil. Elkem ASA's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €2,033 Mil. Therefore, Elkem ASA's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 0.48%.
The historical rank and industry rank for Elkem ASA's Return-on-Tangible-Equity or its related term are showing as below:
FRA:1DP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.74 Med: 9.85 Max: 43.95
Current: -1.82
During the past 12 years, Elkem ASA's highest Return-on-Tangible-Equity was 43.95%. The lowest was -2.74%. And the median was 9.85%.
FRA:1DP's Return-on-Tangible-Equity is ranked worse than 77.46% of 1566
companies
in the Chemicals industry
Industry Median: 5.69
vs FRA:1DP: -1.82
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.
Elkem ASA Return-on-Tangible-Equity Related Terms
Elkem ASA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Elkem ASA'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.
FRA:1DP vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Elkem ASA'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.
Elkem ASA Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Elkem ASA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Elkem ASA'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 0.48% mean?
Elkem ASA (FRA:1DP) has a Return-on-Tangible-Equity of 0.48% 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 Elkem ASA and its competitors. This is 95% below median its historical median of 9.85. According to the industry distribution chart, Elkem ASA ranks #1213 out of 1566 companies in the Chemicals industry, placing it in the top 77.5%.
Is Elkem ASA's Return-on-Tangible-Equity too high?
Elkem ASA's current Return-on-Tangible-Equity of 0.48% is 95% below median its 10-year median of 9.85. The Chemicals industry median Return-on-Tangible-Equity is 5.69. Elkem ASA's value of 0.48% is 91.6% below this industry median. Based on the distribution chart, Elkem ASA ranks #1213 out of 1566 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Elkem ASA has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Elkem ASA's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Elkem ASA ranks #1213 out of 1566 companies for Return-on-Tangible-Equity. This places Elkem ASA in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.69. Elkem ASA's value of 0.48% is 91.6% below this benchmark. While the company's 10-year median is 9.85 vs. the industry median of 5.69, Elkem ASA has consistently been below 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.69, based on 1,566 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. Elkem ASA's current Return-on-Tangible-Equity of 0.48% is 91.6% below 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 Elkem ASA and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elkem ASA's current Return-on-Tangible-Equity is 0.48%, which is 95% below median its own 10-year median of 9.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elkem ASA stock overvalued right now?
Based on GuruFocus' analysis, Elkem ASA (FRA:1DP) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.41, compared to a current price of €2.77 — trading 96.7% above its estimated fair value. The current Return-on-Tangible-Equity is 0.48%, which is 95% below median its 10-year median of 9.85 and 91.6% below the Chemicals industry median of 5.69. Elkem ASA's overall GF Score™ is 62/100 with 9 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 Elkem ASA (FRA:1DP), the current Return-on-Tangible-Equity is 0.48% 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 Elkem ASA (FRA:1DP) Overvalued in 2026?
Based on GuruFocus' analysis, Elkem ASA stock appears to be overvalued.
The current stock price of €2.77 is trading 96.7% above its estimated GF Value™ of €1.41.
GuruFocus considers Elkem ASA to be Significantly Overvalued.
Key valuation signals for FRA:1DP:
Return-on-Tangible-Equity: 0.48% (95% below median its 10-year median of 9.85)
GF Value™: €1.41 vs. price of €2.77 (96.7% above fair value)
Industry Position: 91.6% below the Chemicals median (#1213 of 1566)
No single metric tells the full story. See the FRA:1DP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elkem ASA offers material solutions that shape a more sustainable future. The company develops silicones, silicon products, and carbon solutions by combining natural raw materials, renewable energy, and human ingenuity. The group helps its customers create and improve essential innovations in electric mobility, digital communications, health, and personal care, as well as in smarter, more sustainable cities. It has three reportable segments, namely Silicones, Silicon Products, and Carbon Solutions. It generates the majority of the revenue from the Silicones segment.
62GF Score
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