Arcontech GroupLSE:ARC 51 Return-on-Tangible-Equity is 11.37% as of Dec. 2025, which is 61% below its 10-year median of 29.42. GuruFocus rates LSE:ARC with a GF Score™ of 51/100 and a GF Value™ of £0.87 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,469 Software companies, Arcontech Group ranks better than 55.29% 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. Arcontech Group's annualized net income for the quarter that ended in Dec. 2025 was £0.79 Mil. Arcontech Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was £6.95 Mil. Therefore, Arcontech Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 11.37%.
The historical rank and industry rank for Arcontech Group's Return-on-Tangible-Equity or its related term are showing as below:
LSE:ARC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.01 Med: 29.42 Max: 137.84
Current: 12.01
During the past 13 years, Arcontech Group's highest Return-on-Tangible-Equity was 137.84%. The lowest was 12.01%. And the median was 29.42%.
LSE:ARC's Return-on-Tangible-Equity is ranked better than 55.29% of 2469
companies
in the Software industry
Industry Median: 8.62
vs LSE:ARC: 12.01
Arcontech Group (LSE:ARC) 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.
Arcontech Group Return-on-Tangible-Equity Related Terms
Arcontech Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Arcontech Group'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.
LSE:ARC vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Arcontech Group'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.
Arcontech Group Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Arcontech Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arcontech Group'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 11.37% mean?
Arcontech Group (LSE:ARC) has a Return-on-Tangible-Equity of 11.37% 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 Arcontech Group and its competitors. This is 61% below median its historical median of 29.42. Over the past decade, Arcontech Group's Return-on-Tangible-Equity has ranged from 12.01 to 137.84. According to the industry distribution chart, Arcontech Group ranks #1104 out of 2469 companies in the Software industry, placing it in the top 44.7%.
Is Arcontech Group's Return-on-Tangible-Equity too high?
Arcontech Group's current Return-on-Tangible-Equity of 11.37% is 61% below median its 10-year median of 29.42. Over the past 10 years, this metric has ranged from a low of 12.01 to a high of 137.84. The Software industry median Return-on-Tangible-Equity is 8.62. Arcontech Group's value of 11.37% is 31.9% above this industry median. Based on the distribution chart, Arcontech Group ranks #1104 out of 2469 companies in the Software industry, which is above the industry midpoint. Overall, Arcontech Group has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arcontech Group's Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, Arcontech Group ranks #1104 out of 2469 companies for Return-on-Tangible-Equity. This puts Arcontech Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.62. Arcontech Group's value of 11.37% is 31.9% above this benchmark. Historically, Arcontech Group's own Return-on-Tangible-Equity has ranged from 12.01 to 137.84 over the past decade. While the company's 10-year median is 29.42 vs. the industry median of 8.62, Arcontech Group 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 2,469 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. Arcontech Group's current Return-on-Tangible-Equity of 11.37% is 31.9% 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 Arcontech Group 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. Arcontech Group's current Return-on-Tangible-Equity is 11.37%, which is 61% below median its own 10-year median of 29.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arcontech Group stock overvalued right now?
Based on GuruFocus' analysis, Arcontech Group (LSE:ARC) is currently considered Fairly Valued. The stock's GF Value™ is £0.87, compared to a current price of £0.84 — trading 4% below its estimated fair value. The current Return-on-Tangible-Equity is 11.37%, which is 61% below median its 10-year median of 29.42 and 31.9% above the Software industry median of 8.62. Arcontech Group's overall GF Score™ is 51/100 with 1 warning sign 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 Arcontech Group (LSE:ARC), the current Return-on-Tangible-Equity is 11.37% 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 Arcontech Group (LSE:ARC) Overvalued in 2026?
Based on GuruFocus' analysis, Arcontech Group stock appears to be undervalued.
The current stock price of £0.84 is trading 4% below its estimated GF Value™ of £0.87.
GuruFocus considers Arcontech Group to be Fairly Valued.
Key valuation signals for LSE:ARC:
Return-on-Tangible-Equity: 11.37% (61% below median its 10-year median of 29.42)
GF Value™: £0.87 vs. price of £0.84 (4% below fair value)
Industry Position: 31.9% above the Software median (#1104 of 2469)
No single metric tells the full story. See the LSE:ARC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arcontech Group PLC is a real-time software company. The company develops and sells products and bespoke systems for collection, processing, distribution and presentation and time-sensitive financial markets data and provides computer consultancy services. Its products include Cityvision, Excelerator, Cityvison Cache, Cityvision Relay, and others. The company has a software development and license fees segment. The company operates in UK, Europe (excluding UK), Africa, North America, Australia, and Asia Pacific.
51GF Score
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