ISA HoldingsJSE:ISA +1.01%89 Return-on-Tangible-Equity is 46.55% as of Feb. 2026, which is 39% above its 10-year median of 33.55. GuruFocus rates JSE:ISA with a GF Score™ of 89/100 and a GF Value™ of R2.24 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,468 Software companies, ISA Holdings ranks better than 81.89% 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. ISA Holdings's annualized net income for the quarter that ended in Feb. 2026 was R27.9 Mil. ISA Holdings's average shareholder tangible equity for the quarter that ended in Feb. 2026 was R59.9 Mil. Therefore, ISA Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 46.55%.
The historical rank and industry rank for ISA Holdings's Return-on-Tangible-Equity or its related term are showing as below:
JSE:ISA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 21.5 Med: 33.55 Max: 48.93
Current: 44.8
During the past 13 years, ISA Holdings's highest Return-on-Tangible-Equity was 48.93%. The lowest was 21.50%. And the median was 33.55%.
JSE:ISA's Return-on-Tangible-Equity is ranked better than 81.89% of 2468
companies
in the Software industry
Industry Median: 8.605
vs JSE:ISA: 44.80
ISA Holdings (JSE:ISA) 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.
ISA Holdings Return-on-Tangible-Equity Related Terms
ISA Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ISA Holdings'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.
JSE:ISA vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, ISA Holdings'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.
ISA Holdings Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, ISA Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ISA Holdings'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 (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 46.55% mean?
ISA Holdings (JSE:ISA) has a Return-on-Tangible-Equity of 46.55% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ISA Holdings and its competitors. This is 39% above median its historical median of 33.55. Over the past decade, ISA Holdings' Return-on-Tangible-Equity has ranged from 21.50 to 48.93. According to the industry distribution chart, ISA Holdings ranks #447 out of 2468 companies in the Software industry, placing it in the top 18.1%.
Is ISA Holdings' Return-on-Tangible-Equity too high?
ISA Holdings' current Return-on-Tangible-Equity of 46.55% is 39% above median its 10-year median of 33.55. Over the past 10 years, this metric has ranged from a low of 21.50 to a high of 48.93. The Software industry median Return-on-Tangible-Equity is 8.61. ISA Holdings' value of 46.55% is 441% above this industry median. Based on the distribution chart, ISA Holdings ranks #447 out of 2468 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, ISA Holdings has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ISA Holdings' Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, ISA Holdings ranks #447 out of 2468 companies for Return-on-Tangible-Equity. This places ISA Holdings in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.61. ISA Holdings' value of 46.55% is 441% above this benchmark. Historically, ISA Holdings' own Return-on-Tangible-Equity has ranged from 21.50 to 48.93 over the past decade. While the company's 10-year median is 33.55 vs. the industry median of 8.61, ISA Holdings 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 8.61, based on 2,468 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. ISA Holdings's current Return-on-Tangible-Equity of 46.55% is 441% 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 ISA Holdings and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ISA Holdings's current Return-on-Tangible-Equity is 46.55%, which is 39% above median its own 10-year median of 33.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ISA Holdings stock overvalued right now?
Based on GuruFocus' analysis, ISA Holdings (JSE:ISA) is currently considered Modestly Undervalued. The stock's GF Value™ is R2.24, compared to a current price of R2.00 — trading 10.7% below its estimated fair value. The current Return-on-Tangible-Equity is 46.55%, which is 39% above median its 10-year median of 33.55 and 441% above the Software industry median of 8.61. ISA Holdings' overall GF Score™ is 89/100 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 ISA Holdings (JSE:ISA), the current Return-on-Tangible-Equity is 46.55% as of Feb. 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 ISA Holdings (JSE:ISA) Overvalued in 2026?
Based on GuruFocus' analysis, ISA Holdings stock appears to be undervalued.
The current stock price of R2.00 is trading 10.7% below its estimated GF Value™ of R2.24.
GuruFocus considers ISA Holdings to be Modestly Undervalued.
Key valuation signals for JSE:ISA:
Return-on-Tangible-Equity: 46.55% (39% above median its 10-year median of 33.55)
GF Value™: R2.24 vs. price of R2.00 (10.7% below fair value)
Industry Position: 441% above the Software median (#447 of 2468)
No single metric tells the full story. See the JSE:ISA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ISA Holdings Ltd is an investment holding company. The company, through its subsidiary, provides network, Internet, and information security solutions to the sub-Saharan African market. Its business is to discover, design, deliver, deploy, and manage its bespoke Information and Communication Technology (ICT) security infrastructure. Its technology offerings include firewalls, anti-virus, authentication, remote access, content security, intrusion protection, virtual private networking, vulnerability assessment, messaging and data protection, and identity and access management. The company generates a majority of its revenue from its business in South Africa.
89GF Score
Get the complete analysis for JSE:ISA
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
JSE:ISA has been successfully added to your 
