Leidos HoldingsMEX:LDOS 74 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates MEX:LDOS with a GF Score™ of 74/100 and a GF Value™ of MXN3,020.19 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,471 Software companies, Leidos Holdings ranks better than 99.92% 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. Leidos Holdings's annualized net income for the quarter that ended in Mar. 2026 was MXN23,659 Mil. Leidos Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN-53,694 Mil. Therefore, Leidos Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Leidos Holdings's Return-on-Tangible-Equity or its related term are showing as below:
MEX:LDOS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
MEX:LDOS's Return-on-Tangible-Equity is ranked better than 99.92% of 2471
companies
in the Software industry
Industry Median: 8.77
vs MEX:LDOS: Negative Tangible Equity
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.
Leidos Holdings Return-on-Tangible-Equity Related Terms
Leidos Holdings Return-on-Tangible-Equity Historical Data
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The historical data trend for Leidos Holdings'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:LDOS vs WSE, APLD, CIFR: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Leidos Holdings'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.
Leidos Holdings Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Leidos Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Leidos Holdings'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 Negative Tangible Equity% mean?
Leidos Holdings (MEX:LDOS) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Leidos Holdings and its competitors. According to the industry distribution chart, Leidos Holdings ranks #2 out of 2471 companies in the Software industry, placing it in the top 0.099999999999994%.
Is Leidos Holdings' Return-on-Tangible-Equity too high?
Leidos Holdings' current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Leidos Holdings ranks #2 out of 2471 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Leidos Holdings has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Leidos Holdings' Return-on-Tangible-Equity compare to WSE and APLD?
According to the Software industry distribution chart, Leidos Holdings ranks #2 out of 2471 companies for Return-on-Tangible-Equity. This places Leidos Holdings in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.77. 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 8.77, based on 2,471 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. 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 Leidos Holdings and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leidos Holdings's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leidos Holdings stock overvalued right now?
Based on GuruFocus' analysis, Leidos Holdings (MEX:LDOS) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN3,020.19, compared to a current price of MXN1,840.66 — trading 39.1% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Leidos Holdings' overall GF Score™ is 74/100 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 Leidos Holdings (MEX:LDOS), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Leidos Holdings (MEX:LDOS) Overvalued in 2026?
Based on GuruFocus' analysis, Leidos Holdings stock appears to be undervalued.
The current stock price of MXN1,840.66 is trading 39.1% below its estimated GF Value™ of MXN3,020.19.
GuruFocus considers Leidos Holdings to be Significantly Undervalued.
No single metric tells the full story. See the MEX:LDOS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leidos Holdings Inc is a technology, engineering, and science company that provides services and solutions in the defense, intelligence, civil, and health management, both domestically and internationally. The customers of the company includes the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security ("DHS"), the Federal Aviation Administration ("FAA"), the Department of Veterans Affairs ("VA"), and many other U.S. civilian, state and local government agencies, etc. The company is engaged in four reportable segments; National Security & Digital, Health & Civil, Commercial & International and Defense Systems. It provides a wide array of scientific, engineering and technical services and solutions across these reportable segments.
74GF Score
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