AdCapital AGFRA:ADC Return-on-Tangible-Equity is -32.52% as of Jun. 2025. The stock has 5 warning signs investors should review. Among 1,589 Asset Management companies, AdCapital AG ranks worse than 93.96% 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. AdCapital AG's annualized net income for the quarter that ended in Jun. 2025 was €-10.5 Mil. AdCapital AG's average shareholder tangible equity for the quarter that ended in Jun. 2025 was €32.3 Mil. Therefore, AdCapital AG's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2025 was -32.52%.
The historical rank and industry rank for AdCapital AG's Return-on-Tangible-Equity or its related term are showing as below:
FRA:ADC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -31.84 Med: -4.99 Max: 3.28
Current: -31.84
During the past 13 years, AdCapital AG's highest Return-on-Tangible-Equity was 3.28%. The lowest was -31.84%. And the median was -4.99%.
FRA:ADC's Return-on-Tangible-Equity is ranked worse than 93.96% of 1589
companies
in the Asset Management industry
Industry Median: 7.21
vs FRA:ADC: -31.84
AdCapital AG (FRA:ADC) 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.
AdCapital AG Return-on-Tangible-Equity Related Terms
AdCapital AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for AdCapital AG'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:ADC vs BLK, BX, KKR: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, AdCapital AG'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.
AdCapital AG Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, AdCapital AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where AdCapital AG'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 (Jun. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -32.52% mean?
AdCapital AG (FRA:ADC) has a Return-on-Tangible-Equity of -32.52% as of Jun. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AdCapital AG and its competitors. According to the industry distribution chart, AdCapital AG ranks #1493 out of 1589 companies in the Asset Management industry, placing it in the top 94%.
Is AdCapital AG's Return-on-Tangible-Equity too high?
AdCapital AG's current Return-on-Tangible-Equity is -32.52%. Based on the distribution chart, AdCapital AG ranks #1493 out of 1589 companies in the Asset Management industry, which is in the bottom quartile relative to peers.
How does AdCapital AG's Return-on-Tangible-Equity compare to BLK and BX?
According to the Asset Management industry distribution chart, AdCapital AG ranks #1493 out of 1589 companies for Return-on-Tangible-Equity. This places AdCapital AG in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.21. 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 an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.21, based on 1,589 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. 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 AdCapital AG and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AdCapital AG's current Return-on-Tangible-Equity is -32.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AdCapital AG stock overvalued right now?
Based on GuruFocus' analysis, AdCapital AG (FRA:ADC) is currently considered Significantly Undervalued. The stock's GF Value™ is €1.47, compared to a current price of €0.00 — trading 99.8% below its estimated fair value. The current Return-on-Tangible-Equity is -32.52%. 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 AdCapital AG (FRA:ADC), the current Return-on-Tangible-Equity is -32.52% as of Jun. 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.
AdCapital AG is an industrial holding company that invests in and manages companies in industries including electrical engineering, metal and plastic processing, machinery and tool manufacturing, and automotive sectors. Its portfolio includes subsidiaries: BDT Bavaria Digital Technik GmbH, Erich Jaeger GmbH + Co. KG, EW Hof Drives and Systems GmbH, FRAKO Kondensatoren- und Anlagenbau GmbH, KTS Kunststoff Technik Schmölln GmbH and Taller GmbH. The company generates maximum revenue through its subsidiary in the automotive industry. AdCapital's operations are geographically centered in Europe, particularly Germany.
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