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Ecotel Communication AGFRA:E4C 60 Return-on-Tangible-Equity is 28.67% as of Mar. 2026, which is 97% above its 10-year median of 14.58. GuruFocus rates FRA:E4C with a GF Score™ of 60/100 and a GF Value™ of €14.62. The stock has 3 warning signs investors should review. Among 326 Telecommunication Services companies, Ecotel Communication AG ranks worse than 77.61% 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. Ecotel Communication AG's annualized net income for the quarter that ended in Mar. 2026 was €1.4 Mil. Ecotel Communication AG's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €5.0 Mil. Therefore, Ecotel Communication AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 28.67%.
The historical rank and industry rank for Ecotel Communication AG's Return-on-Tangible-Equity or its related term are showing as below:
FRA:E4C'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.78 Med: 14.58 Max: 174.69
Current: 1.62
During the past 13 years, Ecotel Communication AG's highest Return-on-Tangible-Equity was 174.69%. The lowest was -2.78%. And the median was 14.58%.
FRA:E4C's Return-on-Tangible-Equity is ranked worse than 77.61% of 326
companies
in the Telecommunication Services industry
Industry Median: 14.255
vs FRA:E4C: 1.62
Ecotel Communication AG (FRA:E4C) 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.
Ecotel Communication AG Return-on-Tangible-Equity Related Terms
Ecotel Communication AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ecotel Communication 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.
Ecotel Communication AG Return-on-Tangible-Equity Chart
FRA:E4C vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Ecotel Communication 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.
Ecotel Communication AG Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Ecotel Communication AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ecotel Communication 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 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 28.67% mean?
Ecotel Communication AG (FRA:E4C) has a Return-on-Tangible-Equity of 28.67% 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 Ecotel Communication AG and its competitors. This is 97% above median its historical median of 14.58. According to the industry distribution chart, Ecotel Communication AG ranks #253 out of 326 companies in the Telecommunication Services industry, placing it in the top 77.6%.
Is Ecotel Communication AG's Return-on-Tangible-Equity too high?
Ecotel Communication AG's current Return-on-Tangible-Equity of 28.67% is 97% above median its 10-year median of 14.58. The Telecommunication Services industry median Return-on-Tangible-Equity is 14.26. Ecotel Communication AG's value of 28.67% is 101.1% above this industry median. Based on the distribution chart, Ecotel Communication AG ranks #253 out of 326 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Ecotel Communication AG has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Ecotel Communication AG's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Ecotel Communication AG ranks #253 out of 326 companies for Return-on-Tangible-Equity. This places Ecotel Communication AG in the lower half of its industry. The industry median Return-on-Tangible-Equity is 14.26. Ecotel Communication AG's value of 28.67% is 101.1% above this benchmark. While the company's 10-year median is 14.58 vs. the industry median of 14.26, Ecotel Communication AG 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 Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.26, based on 326 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. Ecotel Communication AG's current Return-on-Tangible-Equity of 28.67% is 101.1% 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 Ecotel Communication AG and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ecotel Communication AG's current Return-on-Tangible-Equity is 28.67%, which is 97% above median its own 10-year median of 14.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ecotel Communication AG stock overvalued right now?
Ecotel Communication AG (FRA:E4C) has a current Return-on-Tangible-Equity of 28.67%. The stock's GF Value™ is €14.62, compared to a current price of €6.70 — trading 54.2% below its estimated fair value. The current Return-on-Tangible-Equity is 28.67%, which is 97% above median its 10-year median of 14.58 and 101.1% above the Telecommunication Services industry median of 14.26. Ecotel Communication AG's overall GF Score™ is 60/100 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 Ecotel Communication AG (FRA:E4C), the current Return-on-Tangible-Equity is 28.67% 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 Ecotel Communication AG (FRA:E4C) Overvalued in 2026?
Based on GuruFocus' analysis, Ecotel Communication AG stock appears to be undervalued.
The current stock price of €6.70 is trading 54.2% below its estimated GF Value™ of €14.62.
Key valuation signals for FRA:E4C:
Return-on-Tangible-Equity: 28.67% (97% above median its 10-year median of 14.58)
GF Value™: €14.62 vs. price of €6.70 (54.2% below fair value)
Industry Position: 101.1% above the Telecommunication Services median (#253 of 326)
No single metric tells the full story. See the FRA:E4C stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ecotel Communication AG is a telecommunication company operating in Germany that provides a solution to customers involved in the IT and telecommunication industry. The company operates under business segments that is Ecotel Business customers, Ecotel Wholesale, and Easybell, Majority of the firm's revenue comes from Ecotel Business customers which offers business customers throughout Germany an integrated product portfolio of voice and data services (ICT solutions). The firm's sales are mostly generated in Germany.
60GF Score
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