GMO Payment GatewayFRA:3RH +3.96%91 Return-on-Tangible-Equity is 27.63% as of Mar. 2026, which is 21% above its 10-year median of 22.85. GuruFocus rates FRA:3RH with a GF Score™ of 91/100 and a GF Value™ of €55.74. The stock has 5 warning signs investors should review. Among 2,466 Software companies, GMO Payment Gateway ranks better than 72.22% 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. GMO Payment Gateway's annualized net income for the quarter that ended in Mar. 2026 was €150.3 Mil. GMO Payment Gateway's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €543.9 Mil. Therefore, GMO Payment Gateway's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 27.63%.
The historical rank and industry rank for GMO Payment Gateway's Return-on-Tangible-Equity or its related term are showing as below:
FRA:3RH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 16.52 Med: 22.85 Max: 37.01
Current: 24.79
During the past 13 years, GMO Payment Gateway's highest Return-on-Tangible-Equity was 37.01%. The lowest was 16.52%. And the median was 22.85%.
FRA:3RH's Return-on-Tangible-Equity is ranked better than 72.22% of 2466
companies
in the Software industry
Industry Median: 8.67
vs FRA:3RH: 24.79
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.
GMO Payment Gateway Return-on-Tangible-Equity Related Terms
GMO Payment Gateway Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for GMO Payment Gateway'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:3RH vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, GMO Payment Gateway'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.
GMO Payment Gateway Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, GMO Payment Gateway's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where GMO Payment Gateway'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 27.63% mean?
GMO Payment Gateway (FRA:3RH) has a Return-on-Tangible-Equity of 27.63% 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 GMO Payment Gateway and its competitors. This is 21% above median its historical median of 22.85. Over the past decade, GMO Payment Gateway's Return-on-Tangible-Equity has ranged from 16.52 to 37.01. According to the industry distribution chart, GMO Payment Gateway ranks #685 out of 2466 companies in the Software industry, placing it in the top 27.8%.
Is GMO Payment Gateway's Return-on-Tangible-Equity too high?
GMO Payment Gateway's current Return-on-Tangible-Equity of 27.63% is 21% above median its 10-year median of 22.85. Over the past 10 years, this metric has ranged from a low of 16.52 to a high of 37.01. The Software industry median Return-on-Tangible-Equity is 8.67. GMO Payment Gateway's value of 27.63% is 218.7% above this industry median. Based on the distribution chart, GMO Payment Gateway ranks #685 out of 2466 companies in the Software industry, which is above the industry midpoint. Overall, GMO Payment Gateway has a GF Score™ of 91/100, reflecting its overall financial health beyond just this single metric.
How does GMO Payment Gateway's Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, GMO Payment Gateway ranks #685 out of 2466 companies for Return-on-Tangible-Equity. This puts GMO Payment Gateway in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.67. GMO Payment Gateway's value of 27.63% is 218.7% above this benchmark. Historically, GMO Payment Gateway's own Return-on-Tangible-Equity has ranged from 16.52 to 37.01 over the past decade. While the company's 10-year median is 22.85 vs. the industry median of 8.67, GMO Payment Gateway 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 8.67, based on 2,466 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. GMO Payment Gateway's current Return-on-Tangible-Equity of 27.63% is 218.7% 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 GMO Payment Gateway and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GMO Payment Gateway's current Return-on-Tangible-Equity is 27.63%, which is 21% above median its own 10-year median of 22.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GMO Payment Gateway stock overvalued right now?
GMO Payment Gateway (FRA:3RH) has a current Return-on-Tangible-Equity of 27.63%. The stock's GF Value™ is €55.74, compared to a current price of €52.50 — trading 5.8% below its estimated fair value. The current Return-on-Tangible-Equity is 27.63%, which is 21% above median its 10-year median of 22.85 and 218.7% above the Software industry median of 8.67. GMO Payment Gateway's overall GF Score™ is 91/100 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 GMO Payment Gateway (FRA:3RH), the current Return-on-Tangible-Equity is 27.63% 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 GMO Payment Gateway (FRA:3RH) Overvalued in 2026?
Based on GuruFocus' analysis, GMO Payment Gateway stock appears to be undervalued.
The current stock price of €52.50 is trading 5.8% below its estimated GF Value™ of €55.74.
Key valuation signals for FRA:3RH:
Return-on-Tangible-Equity: 27.63% (21% above median its 10-year median of 22.85)
GF Value™: €55.74 vs. price of €52.50 (5.8% below fair value)
Industry Position: 218.7% above the Software median (#685 of 2466)
No single metric tells the full story. See the FRA:3RH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GMO Payment Gateway is a major Japanese provider of cashless and online payment infrastructure, serving many sectors including digital content and telecommunications, utilities, retail and hospitality, financial services, healthcare, and education. It serves a wide array of clients, from government agencies and municipalities to enterprises and merchants, across online and offline channels, including e-commerce platforms, physical stores, and unattended machines. Its services encompass payment processing, settlement solutions, and ancillary offerings such as early or deferred settlement services, transaction lending, buy now, pay later, online advertising, and internet security. GMO is expanding into adjacent financial technology operations, and gradually across Asia and North America.
91GF Score
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