FerrotecFRA:FER -9.13%54 Return-on-Tangible-Equity is 7.85% as of Mar. 2026, which is 2% above its 10-year median of 7.71. GuruFocus rates FRA:FER with a GF Score™ of 54/100 and a GF Value™ of €19.48 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 984 Semiconductors companies, Ferrotec ranks better than 54.67% 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. Ferrotec's annualized net income for the quarter that ended in Mar. 2026 was €103 Mil. Ferrotec's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €1,316 Mil. Therefore, Ferrotec's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.85%.
The historical rank and industry rank for Ferrotec's Return-on-Tangible-Equity or its related term are showing as below:
FRA:FER'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.8 Med: 7.71 Max: 27.44
Current: 6.49
During the past 13 years, Ferrotec's highest Return-on-Tangible-Equity was 27.44%. The lowest was 3.80%. And the median was 7.71%.
FRA:FER's Return-on-Tangible-Equity is ranked better than 54.67% of 984
companies
in the Semiconductors industry
Industry Median: 5.24
vs FRA:FER: 6.49
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.
Ferrotec Return-on-Tangible-Equity Related Terms
Ferrotec Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ferrotec'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:FER vs NVDA, AVGO, MU: Return-on-Tangible-Equity Comparison
For the Semiconductors subindustry, Ferrotec'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.
Ferrotec Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Ferrotec's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ferrotec'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 7.85% mean?
Ferrotec (FRA:FER) has a Return-on-Tangible-Equity of 7.85% 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 Ferrotec and its competitors. This is near median its historical median of 7.71. Over the past decade, Ferrotec's Return-on-Tangible-Equity has ranged from 3.80 to 27.44. According to the industry distribution chart, Ferrotec ranks #446 out of 984 companies in the Semiconductors industry, placing it in the top 45.3%.
Is Ferrotec's Return-on-Tangible-Equity too high?
Ferrotec's current Return-on-Tangible-Equity of 7.85% is near median its 10-year median of 7.71. Over the past 10 years, this metric has ranged from a low of 3.80 to a high of 27.44. The Semiconductors industry median Return-on-Tangible-Equity is 5.24. Ferrotec's value of 7.85% is 49.8% above this industry median. Based on the distribution chart, Ferrotec ranks #446 out of 984 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Ferrotec has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ferrotec's Return-on-Tangible-Equity compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Ferrotec ranks #446 out of 984 companies for Return-on-Tangible-Equity. This puts Ferrotec in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.24. Ferrotec's value of 7.85% is 49.8% above this benchmark. Historically, Ferrotec's own Return-on-Tangible-Equity has ranged from 3.80 to 27.44 over the past decade. While the company's 10-year median is 7.71 vs. the industry median of 5.24, Ferrotec 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 Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.24, based on 984 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. Ferrotec's current Return-on-Tangible-Equity of 7.85% is 49.8% 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 Ferrotec and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferrotec's current Return-on-Tangible-Equity is 7.85%, which is near median its own 10-year median of 7.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ferrotec stock overvalued right now?
Based on GuruFocus' analysis, Ferrotec (FRA:FER) is currently considered Significantly Overvalued. The stock's GF Value™ is €19.48, compared to a current price of €43.80 — trading 124.8% above its estimated fair value. The current Return-on-Tangible-Equity is 7.85%, which is near median its 10-year median of 7.71 and 49.8% above the Semiconductors industry median of 5.24. Ferrotec's overall GF Score™ is 54/100 with 7 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 Ferrotec (FRA:FER), the current Return-on-Tangible-Equity is 7.85% 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 Ferrotec (FRA:FER) Overvalued in 2026?
Based on GuruFocus' analysis, Ferrotec stock appears to be overvalued.
The current stock price of €43.80 is trading 124.8% above its estimated GF Value™ of €19.48.
GuruFocus considers Ferrotec to be Significantly Overvalued.
Key valuation signals for FRA:FER:
Return-on-Tangible-Equity: 7.85% (near median its 10-year median of 7.71)
GF Value™: €19.48 vs. price of €43.80 (124.8% above fair value)
Industry Position: 49.8% above the Semiconductors median (#446 of 984)
No single metric tells the full story. See the FRA:FER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ferrotec Corp is a manufacturer of semiconductor equipment related products. The company operates through four business segments. Its Electronic device segment manufactures thermo-electric modules, ferrofluid, and power semiconductor substrate. The Equipment-related segment is engaged in the production and sale of vacuum seal, quartz products, ceramics and silicon products, silicon parts, and wafer products. Its Photovoltaic segment is involved in the formation of silicon crystal equipment, quartz crucible, and silicon for the solar cell. The company's Other segment comprises of laundry and other related industrial equipment.
54GF Score
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