Softronic ABFRA:SF7 +0.52%72 Return-on-Tangible-Equity is 45.81% as of Mar. 2026, which is 18% above its 10-year median of 38.95. GuruFocus rates FRA:SF7 with a GF Score™ of 72/100 and a GF Value™ of €2.22 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,467 Software companies, Softronic AB ranks better than 81.6% 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. Softronic AB's annualized net income for the quarter that ended in Mar. 2026 was €7.20 Mil. Softronic AB's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €15.73 Mil. Therefore, Softronic AB's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 45.81%.
The historical rank and industry rank for Softronic AB's Return-on-Tangible-Equity or its related term are showing as below:
FRA:SF7'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 30.59 Med: 38.95 Max: 53.54
Current: 43.55
During the past 13 years, Softronic AB's highest Return-on-Tangible-Equity was 53.54%. The lowest was 30.59%. And the median was 38.95%.
FRA:SF7's Return-on-Tangible-Equity is ranked better than 81.6% of 2467
companies
in the Software industry
Industry Median: 8.62
vs FRA:SF7: 43.55
Softronic AB (FRA:SF7) 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.
Softronic AB Return-on-Tangible-Equity Related Terms
Softronic AB Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Softronic 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:SF7 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Softronic 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.
Softronic AB Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Softronic AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Softronic 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 45.81% mean?
Softronic AB (FRA:SF7) has a Return-on-Tangible-Equity of 45.81% 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 Softronic AB and its competitors. This is 18% above median its historical median of 38.95. Over the past decade, Softronic AB's Return-on-Tangible-Equity has ranged from 30.59 to 53.54. According to the industry distribution chart, Softronic AB ranks #454 out of 2467 companies in the Software industry, placing it in the top 18.4%.
Is Softronic AB's Return-on-Tangible-Equity too high?
Softronic AB's current Return-on-Tangible-Equity of 45.81% is 18% above median its 10-year median of 38.95. Over the past 10 years, this metric has ranged from a low of 30.59 to a high of 53.54. The Software industry median Return-on-Tangible-Equity is 8.62. Softronic AB's value of 45.81% is 431.4% above this industry median. Based on the distribution chart, Softronic AB ranks #454 out of 2467 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Softronic AB has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Softronic AB's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Softronic AB ranks #454 out of 2467 companies for Return-on-Tangible-Equity. This places Softronic AB in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.62. Softronic AB's value of 45.81% is 431.4% above this benchmark. Historically, Softronic AB's own Return-on-Tangible-Equity has ranged from 30.59 to 53.54 over the past decade. While the company's 10-year median is 38.95 vs. the industry median of 8.62, Softronic AB 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 8.62, based on 2,467 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. Softronic AB's current Return-on-Tangible-Equity of 45.81% is 431.4% 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 Softronic AB and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Softronic AB's current Return-on-Tangible-Equity is 45.81%, which is 18% above median its own 10-year median of 38.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softronic AB stock overvalued right now?
Based on GuruFocus' analysis, Softronic AB (FRA:SF7) is currently considered Modestly Undervalued. The stock's GF Value™ is €2.22, compared to a current price of €1.95 — trading 12.2% below its estimated fair value. The current Return-on-Tangible-Equity is 45.81%, which is 18% above median its 10-year median of 38.95 and 431.4% above the Software industry median of 8.62. Softronic AB's overall GF Score™ is 72/100 with 3 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 Softronic AB (FRA:SF7), the current Return-on-Tangible-Equity is 45.81% 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 Softronic AB (FRA:SF7) Overvalued in 2026?
Based on GuruFocus' analysis, Softronic AB stock appears to be undervalued.
The current stock price of €1.95 is trading 12.2% below its estimated GF Value™ of €2.22.
GuruFocus considers Softronic AB to be Modestly Undervalued.
Key valuation signals for FRA:SF7:
Return-on-Tangible-Equity: 45.81% (18% above median its 10-year median of 38.95)
GF Value™: €2.22 vs. price of €1.95 (12.2% below fair value)
Industry Position: 431.4% above the Software median (#454 of 2467)
No single metric tells the full story. See the FRA:SF7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Softronic AB provides a wide selection of IT and management services in Sweden. The company offers E-commerce platform, insurance systems, digitalization, E-health, digital sales platform, scanning, modern outsourcing, managed services, cyber defense as services and customer care system.
72GF Score
Get the complete analysis for FRA:SF7
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