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2G Energy AGFRA:2GB +4.07%82 Return-on-Tangible-Equity is 19.03% as of Dec. 2025, which is 20% above its 10-year median of 15.88. GuruFocus rates FRA:2GB with a GF Score™ of 82/100 and a GF Value™ of €32.14 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,973 Industrial Products companies, 2G Energy AG ranks better than 69.66% 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. 2G Energy AG's annualized net income for the quarter that ended in Dec. 2025 was €26.5 Mil. 2G Energy AG's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €139.2 Mil. Therefore, 2G Energy AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 19.03%.
The historical rank and industry rank for 2G Energy AG's Return-on-Tangible-Equity or its related term are showing as below:
FRA:2GB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.86 Med: 15.88 Max: 19.04
Current: 12.17
During the past 13 years, 2G Energy AG's highest Return-on-Tangible-Equity was 19.04%. The lowest was 3.86%. And the median was 15.88%.
FRA:2GB's Return-on-Tangible-Equity is ranked better than 69.66% of 2973
companies
in the Industrial Products industry
Industry Median: 6.87
vs FRA:2GB: 12.17
2G Energy AG (FRA:2GB) 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.
2G Energy AG Return-on-Tangible-Equity Related Terms
2G Energy AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for 2G Energy AG'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:2GB vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, 2G Energy AG'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.
2G Energy AG Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, 2G Energy AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where 2G Energy AG'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 (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 19.03% mean?
2G Energy AG (FRA:2GB) has a Return-on-Tangible-Equity of 19.03% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on 2G Energy AG and its competitors. This is 20% above median its historical median of 15.88. Over the past decade, 2G Energy AG's Return-on-Tangible-Equity has ranged from 3.86 to 19.04. According to the industry distribution chart, 2G Energy AG ranks #902 out of 2973 companies in the Industrial Products industry, placing it in the top 30.3%.
Is 2G Energy AG's Return-on-Tangible-Equity too high?
2G Energy AG's current Return-on-Tangible-Equity of 19.03% is 20% above median its 10-year median of 15.88. Over the past 10 years, this metric has ranged from a low of 3.86 to a high of 19.04. The Industrial Products industry median Return-on-Tangible-Equity is 6.87. 2G Energy AG's value of 19.03% is 177% above this industry median. Based on the distribution chart, 2G Energy AG ranks #902 out of 2973 companies in the Industrial Products industry, which is above the industry midpoint. Overall, 2G Energy AG has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does 2G Energy AG's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, 2G Energy AG ranks #902 out of 2973 companies for Return-on-Tangible-Equity. This puts 2G Energy AG in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.87. 2G Energy AG's value of 19.03% is 177% above this benchmark. Historically, 2G Energy AG's own Return-on-Tangible-Equity has ranged from 3.86 to 19.04 over the past decade. While the company's 10-year median is 15.88 vs. the industry median of 6.87, 2G Energy AG 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 Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.87, based on 2,973 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. 2G Energy AG's current Return-on-Tangible-Equity of 19.03% is 177% 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 2G Energy AG and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. 2G Energy AG's current Return-on-Tangible-Equity is 19.03%, which is 20% above median its own 10-year median of 15.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 2G Energy AG stock overvalued right now?
Based on GuruFocus' analysis, 2G Energy AG (FRA:2GB) is currently considered Significantly Overvalued. The stock's GF Value™ is €32.14, compared to a current price of €58.75 — trading 82.8% above its estimated fair value. The current Return-on-Tangible-Equity is 19.03%, which is 20% above median its 10-year median of 15.88 and 177% above the Industrial Products industry median of 6.87. 2G Energy AG's overall GF Score™ is 82/100 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 2G Energy AG (FRA:2GB), the current Return-on-Tangible-Equity is 19.03% as of Dec. 2025. 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 2G Energy AG (FRA:2GB) Overvalued in 2026?
Based on GuruFocus' analysis, 2G Energy AG stock appears to be overvalued.
The current stock price of €58.75 is trading 82.8% above its estimated GF Value™ of €32.14.
GuruFocus considers 2G Energy AG to be Significantly Overvalued.
Key valuation signals for FRA:2GB:
Return-on-Tangible-Equity: 19.03% (20% above median its 10-year median of 15.88)
GF Value™: €32.14 vs. price of €58.75 (82.8% above fair value)
Industry Position: 177% above the Industrial Products median (#902 of 2973)
No single metric tells the full story. See the FRA:2GB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
2G Energy AG is a manufacturer and provider of decentralized energy supply systems. The group through development, production, and technical installation, as well as digital grid integration, combined heat and power systems (CHP), offers comprehensive solutions for combined heat and power generation. The product range of the company includes CHP modules for operation deploying natural gas, biogas, other lean gases, and hydrogen. The company's products have applications in sectors like Chemical and pharmaceutical industries, Horticultural, shopping centers, landfills, hotels, heating networks, swimming pools, and others. The group has business operations in Germany and internationally, of which the majority of the revenue is derived from the operations in Germany.
82GF Score
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