LGIFRA:VR4 -2.94%67 Return-on-Tangible-Equity is 8.06% as of Dec. 2025, which is 43% below its 10-year median of 14.13. GuruFocus rates FRA:VR4 with a GF Score™ of 67/100 and a GF Value™ of €2.17. The stock has 2 warning signs investors should review. Among 426 Utilities - Independent Power Producers companies, LGI ranks better than 68.31% 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. LGI's annualized net income for the quarter that ended in Dec. 2025 was €3.50 Mil. LGI's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €43.39 Mil. Therefore, LGI's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 8.06%.
The historical rank and industry rank for LGI's Return-on-Tangible-Equity or its related term are showing as below:
FRA:VR4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.63 Med: 14.13 Max: 16.24
Current: 10.63
During the past 4 years, LGI's highest Return-on-Tangible-Equity was 16.24%. The lowest was 10.63%. And the median was 14.13%.
FRA:VR4's Return-on-Tangible-Equity is ranked better than 68.31% of 426
companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.69
vs FRA:VR4: 10.63
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.
LGI Return-on-Tangible-Equity Related Terms
LGI Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for LGI'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.
For the Utilities - Renewable subindustry, LGI'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.
LGI Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, LGI's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where LGI'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 (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 8.06% mean?
LGI (FRA:VR4) has a Return-on-Tangible-Equity of 8.06% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on LGI and its competitors. This is 43% below median its historical median of 14.13. Over the past decade, LGI's Return-on-Tangible-Equity has ranged from 10.63 to 16.24. According to the industry distribution chart, LGI ranks #135 out of 426 companies in the Utilities - Independent Power Producers industry, placing it in the top 31.7%.
Is LGI's Return-on-Tangible-Equity too high?
LGI's current Return-on-Tangible-Equity of 8.06% is 43% below median its 10-year median of 14.13. Over the past 10 years, this metric has ranged from a low of 10.63 to a high of 16.24. The Utilities - Independent Power Producers industry median Return-on-Tangible-Equity is 4.69. LGI's value of 8.06% is 71.9% above this industry median. Based on the distribution chart, LGI ranks #135 out of 426 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, LGI has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does LGI's Return-on-Tangible-Equity compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, LGI ranks #135 out of 426 companies for Return-on-Tangible-Equity. This puts LGI in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.69. LGI's value of 8.06% is 71.9% above this benchmark. Historically, LGI's own Return-on-Tangible-Equity has ranged from 10.63 to 16.24 over the past decade. While the company's 10-year median is 14.13 vs. the industry median of 4.69, LGI 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 - Independent Power Producers company?
The median Return-on-Tangible-Equity among Utilities - Independent Power Producers companies is 4.69, based on 426 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. LGI's current Return-on-Tangible-Equity of 8.06% is 71.9% 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 LGI and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LGI's current Return-on-Tangible-Equity is 8.06%, which is 43% below median its own 10-year median of 14.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LGI stock overvalued right now?
LGI (FRA:VR4) has a current Return-on-Tangible-Equity of 8.06%. The stock's GF Value™ is €2.17, compared to a current price of €1.65 — trading 24% below its estimated fair value. The current Return-on-Tangible-Equity is 8.06%, which is 43% below median its 10-year median of 14.13 and 71.9% above the Utilities - Independent Power Producers industry median of 4.69. LGI's overall GF Score™ is 67/100 with 2 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 LGI (FRA:VR4), the current Return-on-Tangible-Equity is 8.06% as of Dec. 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 LGI (FRA:VR4) Overvalued in 2026?
Based on GuruFocus' analysis, LGI stock appears to be undervalued.
The current stock price of €1.65 is trading 24% below its estimated GF Value™ of €2.17.
Key valuation signals for FRA:VR4:
Return-on-Tangible-Equity: 8.06% (43% below median its 10-year median of 14.13)
GF Value™: €2.17 vs. price of €1.65 (24% below fair value)
Industry Position: 71.9% above the Utilities - Independent Power Producers median (#135 of 426)
No single metric tells the full story. See the FRA:VR4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LGI Ltd is engaged in the recovery of biogas from landfills, and the subsequent conversion into renewable electricity and saleable environmental products.
67GF Score
Get the complete analysis for FRA:VR4
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