KONE OyjLTS:0II2 +0.26%79 Return-on-Tangible-Equity is 153.95% as of Mar. 2026, which is 128% above its 10-year median of 67.63. GuruFocus rates LTS:0II2 with a GF Score™ of 79/100 and a GF Value™ of €51.54 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,971 Industrial Products companies, KONE Oyj ranks better than 96.9% 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. KONE Oyj's annualized net income for the quarter that ended in Mar. 2026 was €849 Mil. KONE Oyj's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €551 Mil. Therefore, KONE Oyj's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 153.95%.
The historical rank and industry rank for KONE Oyj's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0II2'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 56 Med: 67.63 Max: 206.34
Current: 206.34
During the past 13 years, KONE Oyj's highest Return-on-Tangible-Equity was 206.34%. The lowest was 56.00%. And the median was 67.63%.
LTS:0II2's Return-on-Tangible-Equity is ranked better than 96.9% of 2971
companies
in the Industrial Products industry
Industry Median: 6.72
vs LTS:0II2: 206.34
KONE Oyj (LTS:0II2) 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.
KONE Oyj Return-on-Tangible-Equity Related Terms
KONE Oyj Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for KONE Oyj'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.
LTS:0II2 vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, KONE Oyj'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.
KONE Oyj Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, KONE Oyj's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where KONE Oyj'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 153.95% mean?
KONE Oyj (LTS:0II2) has a Return-on-Tangible-Equity of 153.95% 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 KONE Oyj and its competitors. This is 128% above median its historical median of 67.63. Over the past decade, KONE Oyj's Return-on-Tangible-Equity has ranged from 56.00 to 206.34. According to the industry distribution chart, KONE Oyj ranks #92 out of 2971 companies in the Industrial Products industry, placing it in the top 3.1%.
Is KONE Oyj's Return-on-Tangible-Equity too high?
KONE Oyj's current Return-on-Tangible-Equity of 153.95% is 128% above median its 10-year median of 67.63. Over the past 10 years, this metric has ranged from a low of 56.00 to a high of 206.34. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. KONE Oyj's value of 153.95% is 2190.9% above this industry median. Based on the distribution chart, KONE Oyj ranks #92 out of 2971 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, KONE Oyj has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KONE Oyj's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, KONE Oyj ranks #92 out of 2971 companies for Return-on-Tangible-Equity. This places KONE Oyj in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. KONE Oyj's value of 153.95% is 2190.9% above this benchmark. Historically, KONE Oyj's own Return-on-Tangible-Equity has ranged from 56.00 to 206.34 over the past decade. While the company's 10-year median is 67.63 vs. the industry median of 6.72, KONE Oyj 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,971 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. KONE Oyj's current Return-on-Tangible-Equity of 153.95% is 2190.9% 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 KONE Oyj and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KONE Oyj's current Return-on-Tangible-Equity is 153.95%, which is 128% above median its own 10-year median of 67.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KONE Oyj stock overvalued right now?
Based on GuruFocus' analysis, KONE Oyj (LTS:0II2) is currently considered Fairly Valued. The stock's GF Value™ is €51.54, compared to a current price of €50.97 — trading 1.1% below its estimated fair value. The current Return-on-Tangible-Equity is 153.95%, which is 128% above median its 10-year median of 67.63 and 2190.9% above the Industrial Products industry median of 6.72. KONE Oyj's overall GF Score™ is 79/100 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 KONE Oyj (LTS:0II2), the current Return-on-Tangible-Equity is 153.95% 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 KONE Oyj (LTS:0II2) Overvalued in 2026?
Based on GuruFocus' analysis, KONE Oyj stock appears to be undervalued.
The current stock price of €50.97 is trading 1.1% below its estimated GF Value™ of €51.54.
GuruFocus considers KONE Oyj to be Fairly Valued.
Key valuation signals for LTS:0II2:
Return-on-Tangible-Equity: 153.95% (128% above median its 10-year median of 67.63)
GF Value™: €51.54 vs. price of €50.97 (1.1% below fair value)
Industry Position: 2190.9% above the Industrial Products median (#92 of 2971)
No single metric tells the full story. See the LTS:0II2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kone is a global top-four supplier of elevators and escalators. Kone began producing elevators in Finland in 1918 and today generates revenue in three ways: selling new elevators and escalators, modernizing old equipment, and servicing its installed base. Most of the company's profit comes from the last activity, where contracts are rolled over annually with built-in price increases. The bulk of Kone's business is in elevators, which are more numerous globally than escalators. Its business model is similar to closest competitors Otis, Schindler, and TK Elevator.
79GF Score
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