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PGS SoftwareLTS:0RK2 4 Return-on-Tangible-Equity is 73.98% as of Sep. 2021, which is 9% below its 10-year median of 81.61. GuruFocus rates LTS:0RK2 with a GF Score™ of 4/100. The stock has 6 warning signs investors should review.
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. PGS Software's annualized net income for the quarter that ended in Sep. 2021 was zł45.85 Mil. PGS Software's average shareholder tangible equity for the quarter that ended in Sep. 2021 was zł61.98 Mil. Therefore, PGS Software's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2021 was 73.98%.
The historical rank and industry rank for PGS Software's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0RK2'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 34.86 Med: 81.61 Max: 113.47
Current: 65.37
During the past 13 years, PGS Software's highest Return-on-Tangible-Equity was 113.47%. The lowest was 34.86%. And the median was 81.61%.
LTS:0RK2's Return-on-Tangible-Equity is not ranked
in the Software industry.
Industry Median: 8.83
vs LTS:0RK2: 65.37
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.
PGS Software Return-on-Tangible-Equity Related Terms
PGS Software Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for PGS Software'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:0RK2 vs CRM, INTU, NOW: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, PGS Software'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.
PGS Software Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, PGS Software's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where PGS Software'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 (Sep. 2021) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 73.98% mean?
PGS Software (LTS:0RK2) has a Return-on-Tangible-Equity of 73.98% as of Sep. 2021. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on PGS Software and its competitors. This is near median its historical median of 81.61. Over the past decade, PGS Software's Return-on-Tangible-Equity has ranged from 34.86 to 113.47.
Is PGS Software's Return-on-Tangible-Equity too high?
PGS Software's current Return-on-Tangible-Equity of 73.98% is near median its 10-year median of 81.61. Over the past 10 years, this metric has ranged from a low of 34.86 to a high of 113.47. The Software industry median Return-on-Tangible-Equity is 8.83. PGS Software's value of 73.98% is 737.8% above this industry median. Overall, PGS Software has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does PGS Software's Return-on-Tangible-Equity compare to CRM and INTU?
PGS Software's Return-on-Tangible-Equity of 73.98% can be compared against companies in the Software industry. The industry median Return-on-Tangible-Equity is 8.83. PGS Software's value of 73.98% is 737.8% above this benchmark. Historically, PGS Software's own Return-on-Tangible-Equity has ranged from 34.86 to 113.47 over the past decade. While the company's 10-year median is 81.61 vs. the industry median of 8.83, PGS Software 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 8.83, based on 2,477 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. PGS Software's current Return-on-Tangible-Equity of 73.98% is 737.8% 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 PGS Software and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PGS Software's current Return-on-Tangible-Equity is 73.98%, which is near median its own 10-year median of 81.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PGS Software stock overvalued right now?
PGS Software (LTS:0RK2) has a current Return-on-Tangible-Equity of 73.98%. The current Return-on-Tangible-Equity is 73.98%, which is near median its 10-year median of 81.61 and 737.8% above the Software industry median of 8.83. PGS Software's overall GF Score™ is 4/100 with 6 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 PGS Software (LTS:0RK2), the current Return-on-Tangible-Equity is 73.98% as of Sep. 2021. 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.
PGS Software SA provides software development and IT outsourcing services in Poland. It offers nearshore software outsourcing; mobile and web; application development; continuous delivery, quality analysis, and automation; and cloud services.
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