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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. Resources Connection's annualized net income for the quarter that ended in Feb. 2026 was €-32.0 Mil. Resources Connection's average shareholder tangible equity for the quarter that ended in Feb. 2026 was €124.6 Mil. Therefore, Resources Connection's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was -25.71%.
The historical rank and industry rank for Resources Connection's Return-on-Tangible-Equity or its related term are showing as below:
FRA:RCO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -108.98 Med: 30.58 Max: 56.11
Current: -63.55
During the past 13 years, Resources Connection's highest Return-on-Tangible-Equity was 56.11%. The lowest was -108.98%. And the median was 30.58%.
FRA:RCO's Return-on-Tangible-Equity is ranked worse than 95.94% of 1009
companies
in the Business Services industry
Industry Median: 10.57
vs FRA:RCO: -63.55
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.
Resources Connection Return-on-Tangible-Equity Related Terms
Resources Connection Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Resources 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:RCO vs FORR, GLAI, EUBG: Return-on-Tangible-Equity Comparison
For the Consulting Services subindustry, Resources 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.
Resources Connection Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, Resources Connection's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Resources 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 (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -25.71% mean?
Resources Connection (FRA:RCO) has a Return-on-Tangible-Equity of -25.71% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Resources Connection and its competitors. According to the industry distribution chart, Resources Connection ranks #968 out of 1009 companies in the Business Services industry, placing it in the top 95.9%.
Is Resources Connection's Return-on-Tangible-Equity too high?
Resources Connection's current Return-on-Tangible-Equity is -25.71%. Based on the distribution chart, Resources Connection ranks #968 out of 1009 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Resources Connection has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Resources Connection's Return-on-Tangible-Equity compare to FORR and GLAI?
According to the Business Services industry distribution chart, Resources Connection ranks #968 out of 1009 companies for Return-on-Tangible-Equity. This places Resources Connection in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.57. 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.57, based on 1,009 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 Resources Connection and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Resources Connection's current Return-on-Tangible-Equity is -25.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Resources Connection stock overvalued right now?
Resources Connection (FRA:RCO) has a current Return-on-Tangible-Equity of -25.71%. The stock's GF Value™ is €5.81, compared to a current price of €4.06 — trading 30.1% below its estimated fair value. The current Return-on-Tangible-Equity is -25.71%. Resources Connection's overall GF Score™ is 66/100 with 8 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 Resources Connection (FRA:RCO), the current Return-on-Tangible-Equity is -25.71% as of Feb. 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 Resources Connection (FRA:RCO) Overvalued in 2026?
Based on GuruFocus' analysis, Resources Connection stock appears to be undervalued.
The current stock price of €4.06 is trading 30.1% below its estimated GF Value™ of €5.81.
Key valuation signals for FRA:RCO:
Return-on-Tangible-Equity: -25.71%
GF Value™: €5.81 vs. price of €4.06 (30.1% below fair value)
No single metric tells the full story. See the FRA:RCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Resources Connection Inc provides consulting and business initiative support services predominantly through its operative subsidiary, Resources Global Professionals. It has two segments RGP ( Resources Global Professionals.) and Sitrick. The RGP segment is focused on delivering consulting services catering to its client's operational needs and change initiatives utilizing a combination of bench and on-demand, talent. The Sitrick segment provides corporate, financial, transactional, and crisis communication and management services. The company generates a majority of its revenue from the RGP segment. Geographically, it derives its key revenue from North America and the rest from Europe and the Asia Pacific region.
66GF Score
Get the complete analysis for FRA:RCO
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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