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Solstice Advanced MaterialsFRA:A8E +4.84%19 Return-on-Tangible-Equity is 60.16% as of Mar. 2026, which is 136% above its 10-year median of 25.49. GuruFocus rates FRA:A8E with a GF Score™ of 19/100. The stock has 3 warning signs investors should review. Among 1,568 Chemicals companies, Solstice Advanced Materials ranks better than 72.13% 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. Solstice Advanced Materials's annualized net income for the quarter that ended in Mar. 2026 was €294 Mil. Solstice Advanced Materials's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €489 Mil. Therefore, Solstice Advanced Materials's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 60.16%.
The historical rank and industry rank for Solstice Advanced Materials's Return-on-Tangible-Equity or its related term are showing as below:
FRA:A8E'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.05 Med: 25.49 Max: 27.6
Current: 11.05
During the past 4 years, Solstice Advanced Materials's highest Return-on-Tangible-Equity was 27.60%. The lowest was 11.05%. And the median was 25.49%.
FRA:A8E's Return-on-Tangible-Equity is ranked better than 72.13% of 1568
companies
in the Chemicals industry
Industry Median: 5.785
vs FRA:A8E: 11.05
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.
Solstice Advanced Materials Return-on-Tangible-Equity Related Terms
Solstice Advanced Materials Return-on-Tangible-Equity Historical Data
* 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:A8E vs RPM, ESI, ALB: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Solstice Advanced Materials'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.
Solstice Advanced Materials Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Solstice Advanced Materials's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Solstice Advanced Materials'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 60.16% mean?
Solstice Advanced Materials (FRA:A8E) has a Return-on-Tangible-Equity of 60.16% 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 Solstice Advanced Materials and its competitors. This is 136% above median its historical median of 25.49. Over the past decade, Solstice Advanced Materials' Return-on-Tangible-Equity has ranged from 11.05 to 27.60. According to the industry distribution chart, Solstice Advanced Materials ranks #437 out of 1568 companies in the Chemicals industry, placing it in the top 27.9%.
Is Solstice Advanced Materials' Return-on-Tangible-Equity too high?
Solstice Advanced Materials' current Return-on-Tangible-Equity of 60.16% is 136% above median its 10-year median of 25.49. Over the past 10 years, this metric has ranged from a low of 11.05 to a high of 27.60. The Chemicals industry median Return-on-Tangible-Equity is 5.79. Solstice Advanced Materials' value of 60.16% is 939.9% above this industry median. Based on the distribution chart, Solstice Advanced Materials ranks #437 out of 1568 companies in the Chemicals industry, which is above the industry midpoint. Overall, Solstice Advanced Materials has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Solstice Advanced Materials' Return-on-Tangible-Equity compare to RPM and ESI?
According to the Chemicals industry distribution chart, Solstice Advanced Materials ranks #437 out of 1568 companies for Return-on-Tangible-Equity. This puts Solstice Advanced Materials in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.79. Solstice Advanced Materials' value of 60.16% is 939.9% above this benchmark. Historically, Solstice Advanced Materials' own Return-on-Tangible-Equity has ranged from 11.05 to 27.60 over the past decade. While the company's 10-year median is 25.49 vs. the industry median of 5.79, Solstice Advanced Materials 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.79, based on 1,568 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. Solstice Advanced Materials's current Return-on-Tangible-Equity of 60.16% is 939.9% 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 Solstice Advanced Materials and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solstice Advanced Materials's current Return-on-Tangible-Equity is 60.16%, which is 136% above median its own 10-year median of 25.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solstice Advanced Materials stock overvalued right now?
Solstice Advanced Materials (FRA:A8E) has a current Return-on-Tangible-Equity of 60.16%. The current Return-on-Tangible-Equity is 60.16%, which is 136% above median its 10-year median of 25.49 and 939.9% above the Chemicals industry median of 5.79. Solstice Advanced Materials' overall GF Score™ is 19/100 with 3 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 Solstice Advanced Materials (FRA:A8E), the current Return-on-Tangible-Equity is 60.16% 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.
Solstice Advanced Materials is a diversified specialty chemicals company created in late 2025 after being spun off from Honeywell. It sells chemicals and materials to a wide range of end markets. Its largest product category is refrigerants used in heating, ventilation and air conditioning systems, and autos, where Solstice sells low global warming potential refrigerants. The company also sells materials used for building and construction, semiconductor production, healthcare packaging, and defense. Additionally, Solstice runs the only US uranium conversion business currently in operation.
19GF Score
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