EO2FRA:EO4 +26.50%21 Return-on-Tangible-Equity is -3.59% as of Aug. 2025. GuruFocus rates FRA:EO4 with a GF Score™ of 21/100 and a GF Value™ of €5.74 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 279 Forest Products companies, EO2 ranks worse than 73.12% 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. EO2's annualized net income for the quarter that ended in Aug. 2025 was €-0.66 Mil. EO2's average shareholder tangible equity for the quarter that ended in Aug. 2025 was €18.27 Mil. Therefore, EO2's annualized Return-on-Tangible-Equity for the quarter that ended in Aug. 2025 was -3.59%.
The historical rank and industry rank for EO2's Return-on-Tangible-Equity or its related term are showing as below:
FRA:EO4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.3 Med: 4.32 Max: 26.12
Current: -4.3
During the past 13 years, EO2's highest Return-on-Tangible-Equity was 26.12%. The lowest was -4.30%. And the median was 4.32%.
FRA:EO4's Return-on-Tangible-Equity is ranked worse than 73.12% of 279
companies
in the Forest Products industry
Industry Median: 2.12
vs FRA:EO4: -4.30
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.
EO2 Return-on-Tangible-Equity Related Terms
EO2 Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for EO2'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:EO4 vs SSD, UFPI, BCC: Return-on-Tangible-Equity Comparison
For the Lumber & Wood Production subindustry, EO2'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.
EO2 Return-on-Tangible-Equity vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, EO2's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where EO2'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 (Aug. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -3.59% mean?
EO2 (FRA:EO4) has a Return-on-Tangible-Equity of -3.59% as of Aug. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on EO2 and its competitors. According to the industry distribution chart, EO2 ranks #204 out of 279 companies in the Forest Products industry, placing it in the top 73.1%.
Is EO2's Return-on-Tangible-Equity too high?
EO2's current Return-on-Tangible-Equity is -3.59%. Based on the distribution chart, EO2 ranks #204 out of 279 companies in the Forest Products industry, which is below the industry midpoint. Overall, EO2 has a GF Score™ of 21/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does EO2's Return-on-Tangible-Equity compare to SSD and UFPI?
According to the Forest Products industry distribution chart, EO2 ranks #204 out of 279 companies for Return-on-Tangible-Equity. This places EO2 in the lower half of its industry. The industry median Return-on-Tangible-Equity is 2.12. 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 Forest Products company?
The median Return-on-Tangible-Equity among Forest Products companies is 2.12, based on 279 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 EO2 and its competitors. For the Forest Products industry, the median Return-on-Tangible-Equity is 2.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EO2's current Return-on-Tangible-Equity is -3.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EO2 stock overvalued right now?
Based on GuruFocus' analysis, EO2 (FRA:EO4) is currently considered Possible Value Trap. The stock's GF Value™ is €5.74, compared to a current price of €2.96 — trading 48.4% below its estimated fair value. The current Return-on-Tangible-Equity is -3.59%. EO2's overall GF Score™ is 21/100 with 2 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 EO2 (FRA:EO4), the current Return-on-Tangible-Equity is -3.59% as of Aug. 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 EO2 (FRA:EO4) Overvalued in 2026?
Based on GuruFocus' analysis, EO2 stock appears to be undervalued.
The current stock price of €2.96 is trading 48.4% below its estimated GF Value™ of €5.74.
GuruFocus considers EO2 to be Possible Value Trap.
Key valuation signals for FRA:EO4:
Return-on-Tangible-Equity: -3.59%
GF Value™: €5.74 vs. price of €2.96 (48.4% below fair value)
No single metric tells the full story. See the FRA:EO4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EO2 SA designs, produces, operates and distributes a range of wood heating products under the EO2 and PIKS brands, including bagged wood pellets, pallets and bulk.
21GF Score
Get the complete analysis for FRA:EO4
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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