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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. Sapiens International NV's annualized net income for the quarter that ended in Sep. 2025 was €48.7 Mil. Sapiens International NV's average shareholder tangible equity for the quarter that ended in Sep. 2025 was €60.8 Mil. Therefore, Sapiens International NV's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2025 was 80.14%.
The historical rank and industry rank for Sapiens International NV's Return-on-Tangible-Equity or its related term are showing as below:
FRA:S3P'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.04 Med: 53.14 Max: 510.93
Current: 52.93
During the past 13 years, Sapiens International NV's highest Return-on-Tangible-Equity was 510.93%. The lowest was 1.04%. And the median was 53.14%.
FRA:S3P's Return-on-Tangible-Equity is not ranked
in the Software industry.
Industry Median: 9.03
vs FRA:S3P: 52.93
Sapiens International NV (FRA:S3P) 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.
Sapiens International NV Return-on-Tangible-Equity Related Terms
Sapiens International NV Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sapiens International NV'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.
Sapiens International NV Return-on-Tangible-Equity Chart
FRA:S3P vs ALKT, VIA, PLUS: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Sapiens International NV'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.
Sapiens International NV Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Sapiens International NV's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sapiens International NV'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 (Sep. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 80.14% mean?
Sapiens International NV (FRA:S3P) has a Return-on-Tangible-Equity of 80.14% as of Sep. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sapiens International NV and its competitors. This is 51% above median its historical median of 53.14. Over the past decade, Sapiens International NV's Return-on-Tangible-Equity has ranged from 1.04 to 510.93.
Is Sapiens International NV's Return-on-Tangible-Equity too high?
Sapiens International NV's current Return-on-Tangible-Equity of 80.14% is 51% above median its 10-year median of 53.14. Over the past 10 years, this metric has ranged from a low of 1.04 to a high of 510.93. The Software industry median Return-on-Tangible-Equity is 9.03. Sapiens International NV's value of 80.14% is 787.5% above this industry median. Overall, Sapiens International NV has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Sapiens International NV's Return-on-Tangible-Equity compare to ALKT and VIA?
Sapiens International NV's Return-on-Tangible-Equity of 80.14% can be compared against companies in the Software industry. The industry median Return-on-Tangible-Equity is 9.03. Sapiens International NV's value of 80.14% is 787.5% above this benchmark. Historically, Sapiens International NV's own Return-on-Tangible-Equity has ranged from 1.04 to 510.93 over the past decade. While the company's 10-year median is 53.14 vs. the industry median of 9.03, Sapiens International NV 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 9.03, based on 2,487 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. Sapiens International NV's current Return-on-Tangible-Equity of 80.14% is 787.5% 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 Sapiens International NV and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sapiens International NV's current Return-on-Tangible-Equity is 80.14%, which is 51% above median its own 10-year median of 53.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sapiens International NV stock overvalued right now?
Sapiens International NV (FRA:S3P) has a current Return-on-Tangible-Equity of 80.14%. The stock's GF Value™ is €26.65, compared to a current price of €36.80 — trading 38.1% above its estimated fair value. The current Return-on-Tangible-Equity is 80.14%, which is 51% above median its 10-year median of 53.14 and 787.5% above the Software industry median of 9.03. Sapiens International NV's overall GF Score™ is 75/100 with 5 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 Sapiens International NV (FRA:S3P), the current Return-on-Tangible-Equity is 80.14% as of Sep. 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 Sapiens International NV (FRA:S3P) Overvalued in 2026?
Based on GuruFocus' analysis, Sapiens International NV stock appears to be overvalued.
The current stock price of €36.80 is trading 38.1% above its estimated GF Value™ of €26.65.
Key valuation signals for FRA:S3P:
Return-on-Tangible-Equity: 80.14% (51% above median its 10-year median of 53.14)
GF Value™: €26.65 vs. price of €36.80 (38.1% above fair value)
Industry Position: 787.5% above the Software median
No single metric tells the full story. See the FRA:S3P stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sapiens International Corp NV is a provider of software solutions for the insurance industry, with an emerging focus on the financial services sector. The company offers software, solutions, and professional services for property & casualty (P&C); reinsurance; life, pension & annuity (L&A); workers' compensation (WC); medical professional liability (MPL); financial & compliance (F&C); and decision modeling for both insurance and financial markets. The group also provides services for project delivery and implementation services, for its Software Solutions portfolio. Geographically, it operates in the region of North America, Rest of the World, and Europe. It generates revenue from Europe.
75GF Score
Get the complete analysis for FRA:S3P
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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