Iren SpAIRDEF -20.91%77 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates IRDEF with a GF Score™ of 77/100 and a GF Value™ of $2.27. The stock has 3 warning signs investors should review. Among 496 Utilities - Regulated companies, Iren SpA ranks better than 99.8% 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. Iren SpA's annualized net income for the quarter that ended in Mar. 2026 was $595 Mil. Iren SpA's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-561 Mil. Therefore, Iren SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Iren SpA's Return-on-Tangible-Equity or its related term are showing as below:
IRDEF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 51.06 Med: 66.82 Max: 132.1
Current: Negative Tangible Equity
During the past 13 years, Iren SpA's highest Return-on-Tangible-Equity was 132.10%. The lowest was 51.06%. And the median was 66.82%.
IRDEF's Return-on-Tangible-Equity is ranked better than 99.8% of 496
companies
in the Utilities - Regulated industry
Industry Median: 10.91
vs IRDEF: Negative Tangible Equity
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.
Iren SpA Return-on-Tangible-Equity Related Terms
Iren SpA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Iren SpA'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.
IRDEF vs SRE: Return-on-Tangible-Equity Comparison
For the Utilities - Diversified subindustry, Iren SpA'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.
Iren SpA Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Iren SpA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Iren SpA'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 Negative Tangible Equity% mean?
Iren SpA (IRDEF) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Iren SpA and its competitors. Over the past decade, Iren SpA's Return-on-Tangible-Equity has ranged from 51.06 to 132.10. According to the industry distribution chart, Iren SpA ranks #1 out of 496 companies in the Utilities - Regulated industry, placing it in the top 0.2%.
Is Iren SpA's Return-on-Tangible-Equity too high?
Iren SpA's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 51.06 to a high of 132.10. Based on the distribution chart, Iren SpA ranks #1 out of 496 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Iren SpA has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Iren SpA's Return-on-Tangible-Equity compare to SRE?
According to the Utilities - Regulated industry distribution chart, Iren SpA ranks #1 out of 496 companies for Return-on-Tangible-Equity. This places Iren SpA in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.91. Historically, Iren SpA's own Return-on-Tangible-Equity has ranged from 51.06 to 132.10 over the past decade. 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 10.91, based on 496 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 Iren SpA and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Iren SpA's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Iren SpA stock overvalued right now?
Iren SpA (IRDEF) has a current Return-on-Tangible-Equity of Negative Tangible Equity%. The stock's GF Value™ is $2.27, compared to a current price of $2.61 — trading 15% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Iren SpA's overall GF Score™ is 77/100 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 Iren SpA (IRDEF), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Iren SpA (IRDEF) Overvalued in 2026?
Based on GuruFocus' analysis, Iren SpA stock appears to be overvalued.
The current stock price of $2.61 is trading 15% above its estimated GF Value™ of $2.27.
No single metric tells the full story. See the IRDEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Iren SpA is a multi-service Italian utilities holding company that produces and distributes electricity and natural gas. It also provides district heating, water, and environmental services. Iren has five operating companies that include Iren Acqua Gas, Iren Energia (electricity and thermal production), Iren Mercato (sale of electricity, gas, and district heating), Iren Emilia (gas distribution), and Iren Ambiente (environmental services). The company primarily uses hydroelectric, cogeneration, and wind power as energy sources. The majority of revenue is derived from the distribution and sale of electricity and natural gas products and services.
77GF Score
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