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. Arlo Technologies's annualized net income for the quarter that ended in Mar. 2026 was €51.5 Mil. Arlo Technologies's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €93.7 Mil. Therefore, Arlo Technologies's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 54.93%.
The historical rank and industry rank for Arlo Technologies's Return-on-Tangible-Equity or its related term are showing as below:
FRA:2VI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -64.54 Med: -36.2 Max: 28.58
Current: 28.58
During the past 10 years, Arlo Technologies's highest Return-on-Tangible-Equity was 28.58%. The lowest was -64.54%. And the median was -36.20%.
FRA:2VI's Return-on-Tangible-Equity is ranked better than 83.24% of 1706
companies
in the Construction industry
Industry Median: 8.235
vs FRA:2VI: 28.58
Arlo Technologies (FRA:2VI) 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.
Arlo Technologies Return-on-Tangible-Equity Related Terms
Arlo Technologies Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Arlo Technologies'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:2VI vs NPKI, ROCK, APOG: Return-on-Tangible-Equity Comparison
For the Building Products & Equipment subindustry, Arlo Technologies'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.
Arlo Technologies Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Arlo Technologies's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arlo Technologies'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 54.93% mean?
Arlo Technologies (FRA:2VI) has a Return-on-Tangible-Equity of 54.93% 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 Arlo Technologies and its competitors. According to the industry distribution chart, Arlo Technologies ranks #286 out of 1706 companies in the Construction industry, placing it in the top 16.8%.
Is Arlo Technologies' Return-on-Tangible-Equity too high?
Arlo Technologies' current Return-on-Tangible-Equity is 54.93%. The Construction industry median Return-on-Tangible-Equity is 8.24. Arlo Technologies' value of 54.93% is 567% above this industry median. Based on the distribution chart, Arlo Technologies ranks #286 out of 1706 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Arlo Technologies has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arlo Technologies' Return-on-Tangible-Equity compare to NPKI and ROCK?
According to the Construction industry distribution chart, Arlo Technologies ranks #286 out of 1706 companies for Return-on-Tangible-Equity. This places Arlo Technologies in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.24. Arlo Technologies' value of 54.93% is 567% above this benchmark. 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.24, based on 1,706 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. Arlo Technologies's current Return-on-Tangible-Equity of 54.93% is 567% 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 Arlo Technologies and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arlo Technologies's current Return-on-Tangible-Equity is 54.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arlo Technologies stock overvalued right now?
Based on GuruFocus' analysis, Arlo Technologies (FRA:2VI) is currently considered Modestly Overvalued. The stock's GF Value™ is €10.25, compared to a current price of €11.92 — trading 16.3% above its estimated fair value. The current Return-on-Tangible-Equity is 54.93% and 567% above the Construction industry median of 8.24. Arlo Technologies' overall GF Score™ is 57/100 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 Arlo Technologies (FRA:2VI), the current Return-on-Tangible-Equity is 54.93% 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 Arlo Technologies (FRA:2VI) Overvalued in 2026?
Based on GuruFocus' analysis, Arlo Technologies stock appears to be overvalued.
The current stock price of €11.92 is trading 16.3% above its estimated GF Value™ of €10.25.
GuruFocus considers Arlo Technologies to be Modestly Overvalued.
Key valuation signals for FRA:2VI:
Return-on-Tangible-Equity: 54.93%
GF Value™: €10.25 vs. price of €11.92 (16.3% above fair value)
Industry Position: 567% above the Construction median (#286 of 1706)
No single metric tells the full story. See the FRA:2VI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arlo Technologies Inc is engaged in the provision of security and video monitoring solutions for homes and businesses. Its cloud-based platform provides users with visibility, insight, and a powerful means to help protect and connect in real-time with the people and things that matter, from any location with a Wi-Fi or cellular connection. The company offers subscription services such as Arlo Secure, Arlo Total Security, and Arlo Safe, and several categories of smart security devices, including smart Wi-Fi and LTE-enabled cameras, video doorbells, floodlight cameras, and home security systems. Geographically, the company generates a majority of its revenue from the United States, followed by Spain, Sweden, and other countries.
57GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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