Atlas Copco ABMEX:ACOF N 86 Return-on-Tangible-Equity is 65.86% as of Mar. 2026, which is 44% below its 10-year median of 118.25. GuruFocus rates MEX:ACOF N with a GF Score™ of 86/100 and a GF Value™ of MXN372.63 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,977 Industrial Products companies, Atlas Copco AB ranks better than 95.97% 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. Atlas Copco AB's annualized net income for the quarter that ended in Mar. 2026 was MXN48,447 Mil. Atlas Copco AB's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN73,556 Mil. Therefore, Atlas Copco AB's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 65.86%.
The historical rank and industry rank for Atlas Copco AB's Return-on-Tangible-Equity or its related term are showing as below:
MEX:ACOF N'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 74.2 Med: 118.25 Max: 562.22
Current: 74.2
During the past 13 years, Atlas Copco AB's highest Return-on-Tangible-Equity was 562.22%. The lowest was 74.20%. And the median was 118.25%.
MEX:ACOF N's Return-on-Tangible-Equity is ranked better than 95.97% of 2977
companies
in the Industrial Products industry
Industry Median: 6.77
vs MEX:ACOF N: 74.20
Atlas Copco AB (MEX:ACOF N) 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.
Atlas Copco AB Return-on-Tangible-Equity Related Terms
Atlas Copco AB Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Atlas Copco AB'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.
MEX:ACOF N vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Atlas Copco AB'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.
Atlas Copco AB Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Atlas Copco AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Atlas Copco AB'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 65.86% mean?
Atlas Copco AB (MEX:ACOF N) has a Return-on-Tangible-Equity of 65.86% 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 Atlas Copco AB and its competitors. This is 44% below median its historical median of 118.25. Over the past decade, Atlas Copco AB's Return-on-Tangible-Equity has ranged from 74.20 to 562.22. According to the industry distribution chart, Atlas Copco AB ranks #120 out of 2977 companies in the Industrial Products industry, placing it in the top 4%.
Is Atlas Copco AB's Return-on-Tangible-Equity too high?
Atlas Copco AB's current Return-on-Tangible-Equity of 65.86% is 44% below median its 10-year median of 118.25. Over the past 10 years, this metric has ranged from a low of 74.20 to a high of 562.22. The Industrial Products industry median Return-on-Tangible-Equity is 6.77. Atlas Copco AB's value of 65.86% is 872.8% above this industry median. Based on the distribution chart, Atlas Copco AB ranks #120 out of 2977 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Atlas Copco AB has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Atlas Copco AB's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Atlas Copco AB ranks #120 out of 2977 companies for Return-on-Tangible-Equity. This places Atlas Copco AB in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.77. Atlas Copco AB's value of 65.86% is 872.8% above this benchmark. Historically, Atlas Copco AB's own Return-on-Tangible-Equity has ranged from 74.20 to 562.22 over the past decade. While the company's 10-year median is 118.25 vs. the industry median of 6.77, Atlas Copco AB 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 6.77, based on 2,977 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. Atlas Copco AB's current Return-on-Tangible-Equity of 65.86% is 872.8% 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 Atlas Copco AB and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Atlas Copco AB's current Return-on-Tangible-Equity is 65.86%, which is 44% below median its own 10-year median of 118.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Atlas Copco AB stock overvalued right now?
Based on GuruFocus' analysis, Atlas Copco AB (MEX:ACOF N) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN372.63, compared to a current price of MXN316.77 — trading 15% below its estimated fair value. The current Return-on-Tangible-Equity is 65.86%, which is 44% below median its 10-year median of 118.25 and 872.8% above the Industrial Products industry median of 6.77. Atlas Copco AB's overall GF Score™ is 86/100 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 Atlas Copco AB (MEX:ACOF N), the current Return-on-Tangible-Equity is 65.86% 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 Atlas Copco AB (MEX:ACOF N) Overvalued in 2026?
Based on GuruFocus' analysis, Atlas Copco AB stock appears to be undervalued.
The current stock price of MXN316.77 is trading 15% below its estimated GF Value™ of MXN372.63.
GuruFocus considers Atlas Copco AB to be Modestly Undervalued.
Key valuation signals for MEX:ACOF N:
Return-on-Tangible-Equity: 65.86% (44% below median its 10-year median of 118.25)
GF Value™: MXN372.63 vs. price of MXN316.77 (15% below fair value)
Industry Position: 872.8% above the Industrial Products median (#120 of 2977)
No single metric tells the full story. See the MEX:ACOF N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Atlas Copco is a 140-year-old Swedish company that pioneered air compression technology and remains a leading air compressor manufacturer. Atlas Copco is also a leading manufacturer of vacuum pump equipment, industrial power tools, and portable power and air compression equipment. The company's operations match the geographic breadth of its customers, with a presence in 180 countries. Atlas Copco's revenue is derived from three sources: initial equipment sales, spare parts, and maintenance.
86GF Score
Get the complete analysis for MEX:ACOF N
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:ACOF N has been successfully added to your 
