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Karo LeatherFRA:68Y -2.08%90 Return-on-Tangible-Equity is 2.96% as of Dec. 2025. GuruFocus rates FRA:68Y with a GF Score™ of 90/100 and a GF Value™ of €4.95. The stock has 7 warning signs investors should review. Among 1,017 Manufacturing - Apparel & Accessories companies, Karo Leather ranks worse than 68.04% 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. Karo Leather's annualized net income for the quarter that ended in Dec. 2025 was €0.82 Mil. Karo Leather's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €27.54 Mil. Therefore, Karo Leather's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 2.96%.
The historical rank and industry rank for Karo Leather's Return-on-Tangible-Equity or its related term are showing as below:
FRA:68Y'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -10.42 Med: -2.42 Max: 6.93
Current: 0.75
During the past 8 years, Karo Leather's highest Return-on-Tangible-Equity was 6.93%. The lowest was -10.42%. And the median was -2.42%.
FRA:68Y's Return-on-Tangible-Equity is ranked worse than 68.04% of 1017
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.43
vs FRA:68Y: 0.75
Karo Leather (FRA:68Y) 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.
Karo Leather Return-on-Tangible-Equity Related Terms
Karo Leather Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Karo Leather'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:68Y vs AIN: Return-on-Tangible-Equity Comparison
For the Textile Manufacturing subindustry, Karo Leather'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.
Karo Leather Return-on-Tangible-Equity vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Karo Leather's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Karo Leather'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 (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 2.96% mean?
Karo Leather (FRA:68Y) has a Return-on-Tangible-Equity of 2.96% 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 Karo Leather and its competitors. According to the industry distribution chart, Karo Leather ranks #692 out of 1017 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 68%.
Is Karo Leather's Return-on-Tangible-Equity too high?
Karo Leather's current Return-on-Tangible-Equity is 2.96%. The Manufacturing - Apparel & Accessories industry median Return-on-Tangible-Equity is 4.43. Karo Leather's value of 2.96% is 33.2% below this industry median. Based on the distribution chart, Karo Leather ranks #692 out of 1017 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Karo Leather has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Karo Leather's Return-on-Tangible-Equity compare to AIN?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Karo Leather ranks #692 out of 1017 companies for Return-on-Tangible-Equity. This places Karo Leather in the lower half of its industry. The industry median Return-on-Tangible-Equity is 4.43. Karo Leather's value of 2.96% is 33.2% below 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 Manufacturing - Apparel & Accessories company?
The median Return-on-Tangible-Equity among Manufacturing - Apparel & Accessories companies is 4.43, based on 1,017 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. Karo Leather's current Return-on-Tangible-Equity of 2.96% is 33.2% 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 Karo Leather and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Return-on-Tangible-Equity is 4.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karo Leather's current Return-on-Tangible-Equity is 2.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karo Leather stock overvalued right now?
Karo Leather (FRA:68Y) has a current Return-on-Tangible-Equity of 2.96%. The stock's GF Value™ is €4.95, compared to a current price of €5.66 — trading 14.3% above its estimated fair value. The current Return-on-Tangible-Equity is 2.96% and 33.2% below the Manufacturing - Apparel & Accessories industry median of 4.43. Karo Leather's overall GF Score™ is 90/100 with 7 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 Karo Leather (FRA:68Y), the current Return-on-Tangible-Equity is 2.96% 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 Karo Leather (FRA:68Y) Overvalued in 2026?
Based on GuruFocus' analysis, Karo Leather stock appears to be overvalued.
The current stock price of €5.66 is trading 14.3% above its estimated GF Value™ of €4.95.
Key valuation signals for FRA:68Y:
Return-on-Tangible-Equity: 2.96%
GF Value™: €4.95 vs. price of €5.66 (14.3% above fair value)
Industry Position: 33.2% below the Manufacturing - Apparel & Accessories median (#692 of 1017)
No single metric tells the full story. See the FRA:68Y stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karo Leather is engaged in machine processing and trading of leather for the furniture industry and selling of cowhides. Its products include sells buffalo, cowhide products; and upholstery leather. It markets products in European Union countries, especially Poland.
90GF 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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