Arjo ABFRA:A39 -1.54%72 Return-on-Tangible-Equity is 112.14% as of Mar. 2026, which is 56% above its 10-year median of 71.91. GuruFocus rates FRA:A39 with a GF Score™ of 72/100 and a GF Value™ of €3.25 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 111 Medical Distribution companies, Arjo AB ranks better than 87.39% 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. Arjo AB's annualized net income for the quarter that ended in Mar. 2026 was €40.1 Mil. Arjo AB's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €35.8 Mil. Therefore, Arjo AB's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 112.14%.
The historical rank and industry rank for Arjo AB's Return-on-Tangible-Equity or its related term are showing as below:
FRA:A39'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.69 Med: 71.91 Max: 342.86
Current: 105.41
During the past 13 years, Arjo AB's highest Return-on-Tangible-Equity was 342.86%. The lowest was 9.69%. And the median was 71.91%.
FRA:A39's Return-on-Tangible-Equity is ranked better than 87.39% of 111
companies
in the Medical Distribution industry
Industry Median: 8.81
vs FRA:A39: 105.41
Arjo AB (FRA:A39) 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.
Arjo AB Return-on-Tangible-Equity Related Terms
Arjo AB Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Arjo AB'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:A39 vs MCK, CAH, COR: Return-on-Tangible-Equity Comparison
For the Medical Distribution subindustry, Arjo AB'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.
Arjo AB Return-on-Tangible-Equity vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Arjo AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arjo AB'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 112.14% mean?
Arjo AB (FRA:A39) has a Return-on-Tangible-Equity of 112.14% 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 Arjo AB and its competitors. This is 56% above median its historical median of 71.91. Over the past decade, Arjo AB's Return-on-Tangible-Equity has ranged from 9.69 to 342.86. According to the industry distribution chart, Arjo AB ranks #14 out of 111 companies in the Medical Distribution industry, placing it in the top 12.6%.
Is Arjo AB's Return-on-Tangible-Equity too high?
Arjo AB's current Return-on-Tangible-Equity of 112.14% is 56% above median its 10-year median of 71.91. Over the past 10 years, this metric has ranged from a low of 9.69 to a high of 342.86. The Medical Distribution industry median Return-on-Tangible-Equity is 8.81. Arjo AB's value of 112.14% is 1172.9% above this industry median. Based on the distribution chart, Arjo AB ranks #14 out of 111 companies in the Medical Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Arjo AB has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arjo AB's Return-on-Tangible-Equity compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, Arjo AB ranks #14 out of 111 companies for Return-on-Tangible-Equity. This places Arjo AB in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.81. Arjo AB's value of 112.14% is 1172.9% above this benchmark. Historically, Arjo AB's own Return-on-Tangible-Equity has ranged from 9.69 to 342.86 over the past decade. While the company's 10-year median is 71.91 vs. the industry median of 8.81, Arjo AB 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 Medical Distribution company?
The median Return-on-Tangible-Equity among Medical Distribution companies is 8.81, based on 111 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. Arjo AB's current Return-on-Tangible-Equity of 112.14% is 1172.9% 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 Arjo AB and its competitors. For the Medical Distribution industry, the median Return-on-Tangible-Equity is 8.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arjo AB's current Return-on-Tangible-Equity is 112.14%, which is 56% above median its own 10-year median of 71.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arjo AB stock overvalued right now?
Based on GuruFocus' analysis, Arjo AB (FRA:A39) is currently considered Modestly Undervalued. The stock's GF Value™ is €3.25, compared to a current price of €2.31 — trading 29% below its estimated fair value. The current Return-on-Tangible-Equity is 112.14%, which is 56% above median its 10-year median of 71.91 and 1172.9% above the Medical Distribution industry median of 8.81. Arjo AB's overall GF Score™ is 72/100 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 Arjo AB (FRA:A39), the current Return-on-Tangible-Equity is 112.14% 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 Arjo AB (FRA:A39) Overvalued in 2026?
Based on GuruFocus' analysis, Arjo AB stock appears to be undervalued.
The current stock price of €2.31 is trading 29% below its estimated GF Value™ of €3.25.
GuruFocus considers Arjo AB to be Modestly Undervalued.
Key valuation signals for FRA:A39:
Return-on-Tangible-Equity: 112.14% (56% above median its 10-year median of 71.91)
GF Value™: €3.25 vs. price of €2.31 (29% below fair value)
Industry Position: 1172.9% above the Medical Distribution median (#14 of 111)
No single metric tells the full story. See the FRA:A39 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arjo AB is a supplier of medical devices, services, and solutions in Sweden. It serves its services to private and public institutions with acute care and long-term care. The company's offering includes products and solutions for patient handling, hygiene, disinfection, medical beds, therapeutic surfaces, venous thromboembolism (VTE) prevention and diagnostics. The company includes segments: Global Sales, North America, Diagnostics.
72GF Score
Get the complete analysis for FRA:A39
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