Knowit ABFRA:KOW +0.55%61 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates FRA:KOW with a GF Score™ of 61/100 and a GF Value™ of €10.64 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,476 Software companies, Knowit AB ranks worse than 40387.68% 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. Knowit AB's annualized net income for the quarter that ended in Mar. 2026 was €11.2 Mil. Knowit AB's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €-2.8 Mil. Therefore, Knowit AB's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Knowit AB's Return-on-Tangible-Equity or its related term are showing as below:
During the past 13 years, Knowit AB's highest Return-on-Tangible-Equity was 306.30%. The lowest was 0.00%. And the median was 212.53%.
FRA:KOW's Return-on-Tangible-Equity is not ranked *
in the Software industry.
Industry Median: 8.82 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Knowit AB (FRA:KOW) 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.
Knowit AB Return-on-Tangible-Equity Related Terms
Knowit AB Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Knowit AB'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:KOW vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Knowit AB'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.
Knowit AB Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Knowit AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Knowit AB'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 Negative Tangible Equity% mean?
Knowit AB (FRA:KOW) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Knowit AB and its competitors. According to the industry distribution chart, Knowit AB ranks #999999 out of 2476 companies in the Software industry.
Is Knowit AB's Return-on-Tangible-Equity too high?
Knowit AB's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Knowit AB ranks #999999 out of 2476 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Knowit AB has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Knowit AB's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Knowit AB ranks #999999 out of 2476 companies for Return-on-Tangible-Equity. This places Knowit AB in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.82. 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 8.82, based on 2,476 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 Knowit AB and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Knowit AB's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Knowit AB stock overvalued right now?
Based on GuruFocus' analysis, Knowit AB (FRA:KOW) is currently considered Possible Value Trap. The stock's GF Value™ is €10.64, compared to a current price of €7.28 — trading 31.6% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Knowit AB's overall GF Score™ is 61/100 with 6 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 Knowit AB (FRA:KOW), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Knowit AB (FRA:KOW) Overvalued in 2026?
Based on GuruFocus' analysis, Knowit AB stock appears to be undervalued.
The current stock price of €7.28 is trading 31.6% below its estimated GF Value™ of €10.64.
GuruFocus considers Knowit AB to be Possible Value Trap.
No single metric tells the full story. See the FRA:KOW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Knowit AB is a Nordic consultancy, operating three divisions: IT and system development; Customer experience technology and communications; Management consultancy. The company has about 2200 employees in 20 locations in Sweden, Norway, Denmark, Finland and Germany. Knowit provides services towards most industries, both public and private sector. Knowit AB (Publ) was founded in 1990 and is headquartered in Stockholm, Sweden.
61GF Score
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