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Kapsch TrafficCom AGLTS:0GTO 62 Return-on-Tangible-Equity is 6.55% as of Sep. 2025, which is 85% above its 10-year median of 3.54. GuruFocus rates LTS:0GTO with a GF Score™ of 62/100 and a GF Value™ of €6.49 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,709 Construction companies, Kapsch TrafficCom AG ranks better than 52.49% 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. Kapsch TrafficCom AG's annualized net income for the quarter that ended in Sep. 2025 was €4.2 Mil. Kapsch TrafficCom AG's average shareholder tangible equity for the quarter that ended in Sep. 2025 was €64.5 Mil. Therefore, Kapsch TrafficCom AG's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2025 was 6.55%.
The historical rank and industry rank for Kapsch TrafficCom AG's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0GTO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -112.28 Med: 3.54 Max: 53.42
Current: 8.98
During the past 13 years, Kapsch TrafficCom AG's highest Return-on-Tangible-Equity was 53.42%. The lowest was -112.28%. And the median was 3.54%.
LTS:0GTO's Return-on-Tangible-Equity is ranked better than 52.49% of 1709
companies
in the Construction industry
Industry Median: 8.21
vs LTS:0GTO: 8.98
Kapsch TrafficCom AG (LTS:0GTO) 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.
Kapsch TrafficCom AG Return-on-Tangible-Equity Related Terms
Kapsch TrafficCom AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Kapsch TrafficCom AG'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.
Kapsch TrafficCom AG Return-on-Tangible-Equity Chart
Kapsch TrafficCom AG Return-on-Tangible-Equity Competitor Comparison
For the Infrastructure Operations subindustry, Kapsch TrafficCom AG'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.
Kapsch TrafficCom AG Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Kapsch TrafficCom AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kapsch TrafficCom AG'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 (Sep. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.55% mean?
Kapsch TrafficCom AG (LTS:0GTO) has a Return-on-Tangible-Equity of 6.55% as of Sep. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Kapsch TrafficCom AG and its competitors. This is 85% above median its historical median of 3.54. According to the industry distribution chart, Kapsch TrafficCom AG ranks #812 out of 1709 companies in the Construction industry, placing it in the top 47.5%.
Is Kapsch TrafficCom AG's Return-on-Tangible-Equity too high?
Kapsch TrafficCom AG's current Return-on-Tangible-Equity of 6.55% is 85% above median its 10-year median of 3.54. The Construction industry median Return-on-Tangible-Equity is 8.21. Kapsch TrafficCom AG's value of 6.55% is 20.2% below this industry median. Based on the distribution chart, Kapsch TrafficCom AG ranks #812 out of 1709 companies in the Construction industry, which is above the industry midpoint. Overall, Kapsch TrafficCom AG has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kapsch TrafficCom AG's Return-on-Tangible-Equity compare to competitors?
According to the Construction industry distribution chart, Kapsch TrafficCom AG ranks #812 out of 1709 companies for Return-on-Tangible-Equity. This puts Kapsch TrafficCom AG in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.21. Kapsch TrafficCom AG's value of 6.55% is 20.2% below this benchmark. While the company's 10-year median is 3.54 vs. the industry median of 8.21, Kapsch TrafficCom AG has consistently been below 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.21, based on 1,709 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. Kapsch TrafficCom AG's current Return-on-Tangible-Equity of 6.55% is 20.2% below 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 Kapsch TrafficCom AG and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kapsch TrafficCom AG's current Return-on-Tangible-Equity is 6.55%, which is 85% above median its own 10-year median of 3.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kapsch TrafficCom AG stock overvalued right now?
Based on GuruFocus' analysis, Kapsch TrafficCom AG (LTS:0GTO) is currently considered Modestly Undervalued. The stock's GF Value™ is €6.49, compared to a current price of €5.16 — trading 20.5% below its estimated fair value. The current Return-on-Tangible-Equity is 6.55%, which is 85% above median its 10-year median of 3.54 and 20.2% below the Construction industry median of 8.21. Kapsch TrafficCom AG's overall GF Score™ is 62/100 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 Kapsch TrafficCom AG (LTS:0GTO), the current Return-on-Tangible-Equity is 6.55% as of Sep. 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 Kapsch TrafficCom AG (LTS:0GTO) Overvalued in 2026?
Based on GuruFocus' analysis, Kapsch TrafficCom AG stock appears to be undervalued.
The current stock price of €5.16 is trading 20.5% below its estimated GF Value™ of €6.49.
GuruFocus considers Kapsch TrafficCom AG to be Modestly Undervalued.
Key valuation signals for LTS:0GTO:
Return-on-Tangible-Equity: 6.55% (85% above median its 10-year median of 3.54)
GF Value™: €6.49 vs. price of €5.16 (20.5% below fair value)
Industry Position: 20.2% below the Construction median (#812 of 1709)
No single metric tells the full story. See the LTS:0GTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kapsch TrafficCom AG is an Austria-based company which provides intelligent transportation systems (ITS). The company's operating segment includes Tolling and Traffic Management. It generates maximum revenue from the Tolling segment. Tolling segment comprises activities relating to the implementation and the technical and commercial operation of toll collection systems. Traffic Management segment primarily comprises activities relating to the implementation and operation of systems and solutions for controlling traffic and mobility behavior, as well as the relating components business. Geographically, it derives a majority of revenue from Europe, Middle East, Africa and also has presence in Austria, Americas, and Asia-Pacific.
62GF Score
Get the complete analysis for LTS:0GTO
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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