Circle SpAMIL:CIRC -2.49%83 Return-on-Tangible-Equity is 28.79% as of Dec. 2025, which is 4% below its 10-year median of 30.07. GuruFocus rates MIL:CIRC with a GF Score™ of 83/100 and a GF Value™ of €12.24 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 2,470 Software companies, Circle SpA ranks better than 76.03% 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. Circle SpA's annualized net income for the quarter that ended in Dec. 2025 was €2.53 Mil. Circle SpA's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €8.77 Mil. Therefore, Circle SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 28.79%.
The historical rank and industry rank for Circle SpA's Return-on-Tangible-Equity or its related term are showing as below:
MIL:CIRC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -6.87 Med: 30.07 Max: 63.66
Current: 30.94
During the past 11 years, Circle SpA's highest Return-on-Tangible-Equity was 63.66%. The lowest was -6.87%. And the median was 30.07%.
MIL:CIRC's Return-on-Tangible-Equity is ranked better than 76.03% of 2470
companies
in the Software industry
Industry Median: 8.77
vs MIL:CIRC: 30.94
Circle SpA (MIL:CIRC) 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.
Circle SpA Return-on-Tangible-Equity Related Terms
Circle SpA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Circle SpA'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.
MIL:CIRC vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Circle SpA'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.
Circle SpA Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Circle SpA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Circle SpA'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 (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 28.79% mean?
Circle SpA (MIL:CIRC) has a Return-on-Tangible-Equity of 28.79% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Circle SpA and its competitors. This is near median its historical median of 30.07. According to the industry distribution chart, Circle SpA ranks #592 out of 2470 companies in the Software industry, placing it in the top 24%.
Is Circle SpA's Return-on-Tangible-Equity too high?
Circle SpA's current Return-on-Tangible-Equity of 28.79% is near median its 10-year median of 30.07. The Software industry median Return-on-Tangible-Equity is 8.77. Circle SpA's value of 28.79% is 228.3% above this industry median. Based on the distribution chart, Circle SpA ranks #592 out of 2470 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Circle SpA has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Circle SpA's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Circle SpA ranks #592 out of 2470 companies for Return-on-Tangible-Equity. This places Circle SpA in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.77. Circle SpA's value of 28.79% is 228.3% above this benchmark. While the company's 10-year median is 30.07 vs. the industry median of 8.77, Circle SpA 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 8.77, based on 2,470 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. Circle SpA's current Return-on-Tangible-Equity of 28.79% is 228.3% 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 Circle SpA 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. Circle SpA's current Return-on-Tangible-Equity is 28.79%, which is near median its own 10-year median of 30.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Circle SpA stock overvalued right now?
Based on GuruFocus' analysis, Circle SpA (MIL:CIRC) is currently considered Modestly Overvalued. The stock's GF Value™ is €12.24, compared to a current price of €13.70 — trading 11.9% above its estimated fair value. The current Return-on-Tangible-Equity is 28.79%, which is near median its 10-year median of 30.07 and 228.3% above the Software industry median of 8.77. Circle SpA's overall GF Score™ is 83/100 with 7 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 Circle SpA (MIL:CIRC), the current Return-on-Tangible-Equity is 28.79% as of Dec. 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 Circle SpA (MIL:CIRC) Overvalued in 2026?
Based on GuruFocus' analysis, Circle SpA stock appears to be overvalued.
The current stock price of €13.70 is trading 11.9% above its estimated GF Value™ of €12.24.
GuruFocus considers Circle SpA to be Modestly Overvalued.
Key valuation signals for MIL:CIRC:
Return-on-Tangible-Equity: 28.79% (near median its 10-year median of 30.07)
GF Value™: €12.24 vs. price of €13.70 (11.9% above fair value)
Industry Position: 228.3% above the Software median (#592 of 2470)
No single metric tells the full story. See the MIL:CIRC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Circle SpA is engaged in providing consulting services, technological solutions, and digital marketing services to companies operating predominantly in the logistics and transportation sectors. It provides strategic consulting services in the fields of port management, logistics, and transport, and also develops software solutions to optimize flow management and improve logistics processes. The company's service offerings in the digital marketing sector include; services for the analysis, identification, and use of multi-channel communication tools for the implementation of digital marketing strategies.
83GF Score
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