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NSEFRA:7YM -0.83%81 Return-on-Tangible-Equity is 25.96% as of Dec. 2025, which is 131% above its 10-year median of 11.26. GuruFocus rates FRA:7YM with a GF Score™ of 81/100 and a GF Value™ of €39.09 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 2,385 Hardware companies, NSE ranks better than 80.34% 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. NSE's annualized net income for the quarter that ended in Dec. 2025 was €8.3 Mil. NSE's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €31.9 Mil. Therefore, NSE's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 25.96%.
The historical rank and industry rank for NSE's Return-on-Tangible-Equity or its related term are showing as below:
FRA:7YM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.64 Med: 11.26 Max: 32.06
Current: 15.95
During the past 13 years, NSE's highest Return-on-Tangible-Equity was 32.06%. The lowest was 0.64%. And the median was 11.26%.
FRA:7YM's Return-on-Tangible-Equity is ranked better than 80.34% of 2385
companies
in the Hardware industry
Industry Median: 5.32
vs FRA:7YM: 15.95
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.
NSE Return-on-Tangible-Equity Related Terms
NSE Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for NSE'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:7YM vs COHR, KEYS, GRMN: Return-on-Tangible-Equity Comparison
For the Scientific & Technical Instruments subindustry, NSE'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.
NSE Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, NSE's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where NSE'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 25.96% mean?
NSE (FRA:7YM) has a Return-on-Tangible-Equity of 25.96% 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 NSE and its competitors. This is 131% above median its historical median of 11.26. Over the past decade, NSE's Return-on-Tangible-Equity has ranged from 0.64 to 32.06. According to the industry distribution chart, NSE ranks #469 out of 2385 companies in the Hardware industry, placing it in the top 19.7%.
Is NSE's Return-on-Tangible-Equity too high?
NSE's current Return-on-Tangible-Equity of 25.96% is 131% above median its 10-year median of 11.26. Over the past 10 years, this metric has ranged from a low of 0.64 to a high of 32.06. The Hardware industry median Return-on-Tangible-Equity is 5.32. NSE's value of 25.96% is 388% above this industry median. Based on the distribution chart, NSE ranks #469 out of 2385 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, NSE has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NSE's Return-on-Tangible-Equity compare to COHR and KEYS?
According to the Hardware industry distribution chart, NSE ranks #469 out of 2385 companies for Return-on-Tangible-Equity. This places NSE in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.32. NSE's value of 25.96% is 388% above this benchmark. Historically, NSE's own Return-on-Tangible-Equity has ranged from 0.64 to 32.06 over the past decade. While the company's 10-year median is 11.26 vs. the industry median of 5.32, NSE 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.32, based on 2,385 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. NSE's current Return-on-Tangible-Equity of 25.96% is 388% 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 NSE and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NSE's current Return-on-Tangible-Equity is 25.96%, which is 131% above median its own 10-year median of 11.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NSE stock overvalued right now?
Based on GuruFocus' analysis, NSE (FRA:7YM) is currently considered Modestly Overvalued. The stock's GF Value™ is €39.09, compared to a current price of €47.70 — trading 22% above its estimated fair value. The current Return-on-Tangible-Equity is 25.96%, which is 131% above median its 10-year median of 11.26 and 388% above the Hardware industry median of 5.32. NSE's overall GF Score™ is 81/100 with 10 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 NSE (FRA:7YM), the current Return-on-Tangible-Equity is 25.96% 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 NSE (FRA:7YM) Overvalued in 2026?
Based on GuruFocus' analysis, NSE stock appears to be overvalued.
The current stock price of €47.70 is trading 22% above its estimated GF Value™ of €39.09.
GuruFocus considers NSE to be Modestly Overvalued.
Key valuation signals for FRA:7YM:
Return-on-Tangible-Equity: 25.96% (131% above median its 10-year median of 11.26)
GF Value™: €39.09 vs. price of €47.70 (22% above fair value)
Industry Position: 388% above the Hardware median (#469 of 2385)
No single metric tells the full story. See the FRA:7YM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NSE SA is engaged in developing, designing, and selling integrated systems and support services in the defense, aerospace and electronics sectors. It offers onboard electronic and electromechanical navigation systems and equipment, Flight data monitoring and tracking, Intelligent geolocation systems.
81GF Score
Get the complete analysis for FRA:7YM
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