Severn TrentFRA:SVT +1.18%61 Return-on-Tangible-Equity is 19.74% as of Mar. 2026, which is 2% above its 10-year median of 19.43. GuruFocus rates FRA:SVT with a GF Score™ of 61/100 and a GF Value™ of €34.91 (Fairly Valued). The stock has 7 warning signs investors should review. Among 499 Utilities - Regulated companies, Severn Trent ranks better than 79.96% 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. Severn Trent's annualized net income for the quarter that ended in Mar. 2026 was €331 Mil. Severn Trent's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €1,678 Mil. Therefore, Severn Trent's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 19.74%.
The historical rank and industry rank for Severn Trent's Return-on-Tangible-Equity or its related term are showing as below:
FRA:SVT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -9.3 Med: 19.43 Max: 40.52
Current: 25.53
During the past 13 years, Severn Trent's highest Return-on-Tangible-Equity was 40.52%. The lowest was -9.30%. And the median was 19.43%.
FRA:SVT's Return-on-Tangible-Equity is ranked better than 79.96% of 499
companies
in the Utilities - Regulated industry
Industry Median: 10.9
vs FRA:SVT: 25.53
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.
Severn Trent Return-on-Tangible-Equity Related Terms
Severn Trent Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Severn Trent'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:SVT vs AWK, WTRG, AWR: Return-on-Tangible-Equity Comparison
For the Utilities - Regulated Water subindustry, Severn Trent'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.
Severn Trent Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Severn Trent's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Severn Trent'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 two times the semi-annual (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 19.74% mean?
Severn Trent (FRA:SVT) has a Return-on-Tangible-Equity of 19.74% 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 Severn Trent and its competitors. This is near median its historical median of 19.43. According to the industry distribution chart, Severn Trent ranks #100 out of 499 companies in the Utilities - Regulated industry, placing it in the top 20%.
Is Severn Trent's Return-on-Tangible-Equity too high?
Severn Trent's current Return-on-Tangible-Equity of 19.74% is near median its 10-year median of 19.43. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.90. Severn Trent's value of 19.74% is 81.1% above this industry median. Based on the distribution chart, Severn Trent ranks #100 out of 499 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Severn Trent has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Severn Trent's Return-on-Tangible-Equity compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Severn Trent ranks #100 out of 499 companies for Return-on-Tangible-Equity. This places Severn Trent in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.90. Severn Trent's value of 19.74% is 81.1% above this benchmark. While the company's 10-year median is 19.43 vs. the industry median of 10.90, Severn Trent 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 an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.90, based on 499 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. Severn Trent's current Return-on-Tangible-Equity of 19.74% is 81.1% 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 Severn Trent and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Severn Trent's current Return-on-Tangible-Equity is 19.74%, which is near median its own 10-year median of 19.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Severn Trent stock overvalued right now?
Based on GuruFocus' analysis, Severn Trent (FRA:SVT) is currently considered Fairly Valued. The stock's GF Value™ is €34.91, compared to a current price of €34.40 — trading 1.5% below its estimated fair value. The current Return-on-Tangible-Equity is 19.74%, which is near median its 10-year median of 19.43 and 81.1% above the Utilities - Regulated industry median of 10.90. Severn Trent's overall GF Score™ is 61/100 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 Severn Trent (FRA:SVT), the current Return-on-Tangible-Equity is 19.74% 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 Severn Trent (FRA:SVT) Overvalued in 2026?
Based on GuruFocus' analysis, Severn Trent stock appears to be undervalued.
The current stock price of €34.40 is trading 1.5% below its estimated GF Value™ of €34.91.
GuruFocus considers Severn Trent to be Fairly Valued.
Key valuation signals for FRA:SVT:
Return-on-Tangible-Equity: 19.74% (near median its 10-year median of 19.43)
GF Value™: €34.91 vs. price of €34.40 (1.5% below fair value)
Industry Position: 81.1% above the Utilities - Regulated median (#100 of 499)
No single metric tells the full story. See the FRA:SVT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Severn Trent PLC is a United Kingdom-based water utilities company. It mainly operates in the U.K., but also in the United States and other countries in Europe. The company derives the majority of its revenue from its regulated water and wastewater segment, which supplies water and conducts sewage and environmental services. The company also operates a business services segment that is involved with renewable energy operations. The company provides contract services to industrial and municipal clients to develop water treatment facilities and networks. The firm generates its renewable energy by using hydropower, wind power, and solar power.
61GF Score
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