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PC ConnectionFRA:PCC +0.71%74 Return-on-Tangible-Equity is 15.40% as of Jun. 2026, which is 19% above its 10-year median of 12.95. GuruFocus rates FRA:PCC with a GF Score™ of 74/100 and a GF Value™ of €59.92. The stock has 7 warning signs investors should review. Among 2,382 Hardware companies, PC Connection ranks better than 69.82% 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. PC Connection's annualized net income for the quarter that ended in Jun. 2026 was €115 Mil. PC Connection's average shareholder tangible equity for the quarter that ended in Jun. 2026 was €748 Mil. Therefore, PC Connection's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 15.40%.
The historical rank and industry rank for PC Connection's Return-on-Tangible-Equity or its related term are showing as below:
FRA:PCC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.02 Med: 12.95 Max: 17.14
Current: 11.41
During the past 13 years, PC Connection's highest Return-on-Tangible-Equity was 17.14%. The lowest was 10.02%. And the median was 12.95%.
FRA:PCC's Return-on-Tangible-Equity is ranked better than 69.82% of 2382
companies
in the Hardware industry
Industry Median: 5.43
vs FRA:PCC: 11.41
PC Connection (FRA:PCC) 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.
PC Connection Return-on-Tangible-Equity Related Terms
PC Connection Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for PC Connection'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:PCC vs SCSC, NLST, NSIT: Return-on-Tangible-Equity Comparison
For the Electronics & Computer Distribution subindustry, PC Connection'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.
PC Connection Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, PC Connection's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where PC Connection'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.40% mean?
PC Connection (FRA:PCC) has a Return-on-Tangible-Equity of 15.40% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on PC Connection and its competitors. This is 19% above median its historical median of 12.95. Over the past decade, PC Connection's Return-on-Tangible-Equity has ranged from 10.02 to 17.14. According to the industry distribution chart, PC Connection ranks #719 out of 2382 companies in the Hardware industry, placing it in the top 30.2%.
Is PC Connection's Return-on-Tangible-Equity too high?
PC Connection's current Return-on-Tangible-Equity of 15.40% is 19% above median its 10-year median of 12.95. Over the past 10 years, this metric has ranged from a low of 10.02 to a high of 17.14. The Hardware industry median Return-on-Tangible-Equity is 5.43. PC Connection's value of 15.40% is 183.6% above this industry median. Based on the distribution chart, PC Connection ranks #719 out of 2382 companies in the Hardware industry, which is above the industry midpoint. Overall, PC Connection has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does PC Connection's Return-on-Tangible-Equity compare to SCSC and NLST?
According to the Hardware industry distribution chart, PC Connection ranks #719 out of 2382 companies for Return-on-Tangible-Equity. This puts PC Connection in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.43. PC Connection's value of 15.40% is 183.6% above this benchmark. Historically, PC Connection's own Return-on-Tangible-Equity has ranged from 10.02 to 17.14 over the past decade. While the company's 10-year median is 12.95 vs. the industry median of 5.43, PC Connection 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.43, based on 2,382 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. PC Connection's current Return-on-Tangible-Equity of 15.40% is 183.6% 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 PC Connection and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PC Connection's current Return-on-Tangible-Equity is 15.40%, which is 19% above median its own 10-year median of 12.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PC Connection stock overvalued right now?
PC Connection (FRA:PCC) has a current Return-on-Tangible-Equity of 15.40%. The stock's GF Value™ is €59.92, compared to a current price of €70.50 — trading 17.7% above its estimated fair value. The current Return-on-Tangible-Equity is 15.40%, which is 19% above median its 10-year median of 12.95 and 183.6% above the Hardware industry median of 5.43. PC Connection's overall GF Score™ is 74/100 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 PC Connection (FRA:PCC), the current Return-on-Tangible-Equity is 15.40% as of Jun. 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 PC Connection (FRA:PCC) Overvalued in 2026?
Based on GuruFocus' analysis, PC Connection stock appears to be overvalued.
The current stock price of €70.50 is trading 17.7% above its estimated GF Value™ of €59.92.
Key valuation signals for FRA:PCC:
Return-on-Tangible-Equity: 15.40% (19% above median its 10-year median of 12.95)
GF Value™: €59.92 vs. price of €70.50 (17.7% above fair value)
Industry Position: 183.6% above the Hardware median (#719 of 2382)
No single metric tells the full story. See the FRA:PCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PC Connection Inc is a provider of information technology solutions. It provides products such as computer systems, software and peripheral equipment, networking communications, and other products and accessories that company purchase from manufacturers and distributors. The company also offers services involving design, configuration, and implementation of IT solutions. It conducts business operations through three business segments namely Connection Business Solutions, Connection Enterprise Solutions, and Connection Public Sector Solutions. The company generates maximum revenue Connection Enterprise Solutions segment.
74GF Score
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