SoftcatLSE:SCT -4.38%82 Return-on-Tangible-Equity is 44.72% as of Jan. 2026, which is 18% below its 10-year median of 54.24. GuruFocus rates LSE:SCT with a GF Score™ of 82/100 and a GF Value™ of £26.00 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,377 Hardware companies, Softcat ranks better than 95.46% 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. Softcat's annualized net income for the quarter that ended in Jan. 2026 was £131 Mil. Softcat's average shareholder tangible equity for the quarter that ended in Jan. 2026 was £293 Mil. Therefore, Softcat's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2026 was 44.72%.
The historical rank and industry rank for Softcat's Return-on-Tangible-Equity or its related term are showing as below:
LSE:SCT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 36.43 Med: 54.24 Max: 63.49
Current: 49.62
During the past 13 years, Softcat's highest Return-on-Tangible-Equity was 63.49%. The lowest was 36.43%. And the median was 54.24%.
LSE:SCT's Return-on-Tangible-Equity is ranked better than 95.46% of 2377
companies
in the Hardware industry
Industry Median: 5.27
vs LSE:SCT: 49.62
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.
Softcat Return-on-Tangible-Equity Related Terms
Softcat Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Softcat'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:SCT vs SNX, ARW, AVT: Return-on-Tangible-Equity Comparison
For the Electronics & Computer Distribution subindustry, Softcat'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.
Softcat Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Softcat's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Softcat'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 (Jan. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 44.72% mean?
Softcat (LSE:SCT) has a Return-on-Tangible-Equity of 44.72% as of Jan. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Softcat and its competitors. This is 18% below median its historical median of 54.24. Over the past decade, Softcat's Return-on-Tangible-Equity has ranged from 36.43 to 63.49. According to the industry distribution chart, Softcat ranks #108 out of 2377 companies in the Hardware industry, placing it in the top 4.5%.
Is Softcat's Return-on-Tangible-Equity too high?
Softcat's current Return-on-Tangible-Equity of 44.72% is 18% below median its 10-year median of 54.24. Over the past 10 years, this metric has ranged from a low of 36.43 to a high of 63.49. The Hardware industry median Return-on-Tangible-Equity is 5.27. Softcat's value of 44.72% is 748.6% above this industry median. Based on the distribution chart, Softcat ranks #108 out of 2377 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Softcat has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Softcat's Return-on-Tangible-Equity compare to SNX and ARW?
According to the Hardware industry distribution chart, Softcat ranks #108 out of 2377 companies for Return-on-Tangible-Equity. This places Softcat in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.27. Softcat's value of 44.72% is 748.6% above this benchmark. Historically, Softcat's own Return-on-Tangible-Equity has ranged from 36.43 to 63.49 over the past decade. While the company's 10-year median is 54.24 vs. the industry median of 5.27, Softcat 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.27, based on 2,377 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. Softcat's current Return-on-Tangible-Equity of 44.72% is 748.6% 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 Softcat and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Softcat's current Return-on-Tangible-Equity is 44.72%, which is 18% below median its own 10-year median of 54.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softcat stock overvalued right now?
Based on GuruFocus' analysis, Softcat (LSE:SCT) is currently considered Modestly Undervalued. The stock's GF Value™ is £26.00, compared to a current price of £18.35 — trading 29.4% below its estimated fair value. The current Return-on-Tangible-Equity is 44.72%, which is 18% below median its 10-year median of 54.24 and 748.6% above the Hardware industry median of 5.27. Softcat's overall GF Score™ is 82/100 with 4 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 Softcat (LSE:SCT), the current Return-on-Tangible-Equity is 44.72% as of Jan. 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 Softcat (LSE:SCT) Overvalued in 2026?
Based on GuruFocus' analysis, Softcat stock appears to be undervalued.
The current stock price of £18.35 is trading 29.4% below its estimated GF Value™ of £26.00.
GuruFocus considers Softcat to be Modestly Undervalued.
Key valuation signals for LSE:SCT:
Return-on-Tangible-Equity: 44.72% (18% below median its 10-year median of 54.24)
GF Value™: £26.00 vs. price of £18.35 (29.4% below fair value)
Industry Position: 748.6% above the Hardware median (#108 of 2377)
No single metric tells the full story. See the LSE:SCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Softcat PLC is an information technology infrastructure and service provider offering software licensing, workplace technology, networking and security, and cloud and data center solutions to corporates, public sector organizations, and small to medium-sized businesses, with the latter being the main business provider. It earns revenue from software, hardware, and services, including its own services, with the majority derived from software products. Its solutions include Workspace, Cyber Security, Networking and Connectivity, Data, Automation and AI, and Hybrid Cloud Solutions. The company serves Small to Medium Businesses, Enterprise, Multinational Services, and the Public Sector including healthcare, education, government, defence, police, and emergency services.
82GF Score
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