SOL SpAMIL:SOL +1.16%78 Return-on-Tangible-Equity is 21.43% as of Dec. 2025, which is 7% above its 10-year median of 20.02. GuruFocus rates MIL:SOL with a GF Score™ of 78/100 and a GF Value™ of €42.47 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,566 Chemicals companies, SOL SpA ranks better than 91.25% 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. SOL SpA's annualized net income for the quarter that ended in Dec. 2025 was €167 Mil. SOL SpA's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €779 Mil. Therefore, SOL SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 21.43%.
The historical rank and industry rank for SOL SpA's Return-on-Tangible-Equity or its related term are showing as below:
MIL:SOL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.21 Med: 20.02 Max: 24.7
Current: 22.05
During the past 13 years, SOL SpA's highest Return-on-Tangible-Equity was 24.70%. The lowest was 10.21%. And the median was 20.02%.
MIL:SOL's Return-on-Tangible-Equity is ranked better than 91.25% of 1566
companies
in the Chemicals industry
Industry Median: 5.69
vs MIL:SOL: 22.05
SOL SpA (MIL:SOL) 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.
SOL SpA Return-on-Tangible-Equity Related Terms
SOL SpA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for SOL 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:SOL vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, SOL 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.
SOL SpA Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, SOL SpA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where SOL 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 21.43% mean?
SOL SpA (MIL:SOL) has a Return-on-Tangible-Equity of 21.43% 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 SOL SpA and its competitors. This is near median its historical median of 20.02. Over the past decade, SOL SpA's Return-on-Tangible-Equity has ranged from 10.21 to 24.70. According to the industry distribution chart, SOL SpA ranks #137 out of 1566 companies in the Chemicals industry, placing it in the top 8.7%.
Is SOL SpA's Return-on-Tangible-Equity too high?
SOL SpA's current Return-on-Tangible-Equity of 21.43% is near median its 10-year median of 20.02. Over the past 10 years, this metric has ranged from a low of 10.21 to a high of 24.70. The Chemicals industry median Return-on-Tangible-Equity is 5.69. SOL SpA's value of 21.43% is 276.6% above this industry median. Based on the distribution chart, SOL SpA ranks #137 out of 1566 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, SOL SpA has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SOL SpA's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, SOL SpA ranks #137 out of 1566 companies for Return-on-Tangible-Equity. This places SOL SpA in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.69. SOL SpA's value of 21.43% is 276.6% above this benchmark. Historically, SOL SpA's own Return-on-Tangible-Equity has ranged from 10.21 to 24.70 over the past decade. While the company's 10-year median is 20.02 vs. the industry median of 5.69, SOL 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.69, based on 1,566 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. SOL SpA's current Return-on-Tangible-Equity of 21.43% is 276.6% 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 SOL SpA and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SOL SpA's current Return-on-Tangible-Equity is 21.43%, which is near median its own 10-year median of 20.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SOL SpA stock overvalued right now?
Based on GuruFocus' analysis, SOL SpA (MIL:SOL) is currently considered Significantly Overvalued. The stock's GF Value™ is €42.47, compared to a current price of €60.80 — trading 43.2% above its estimated fair value. The current Return-on-Tangible-Equity is 21.43%, which is near median its 10-year median of 20.02 and 276.6% above the Chemicals industry median of 5.69. SOL SpA's overall GF Score™ is 78/100 with 5 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 SOL SpA (MIL:SOL), the current Return-on-Tangible-Equity is 21.43% 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 SOL SpA (MIL:SOL) Overvalued in 2026?
Based on GuruFocus' analysis, SOL SpA stock appears to be overvalued.
The current stock price of €60.80 is trading 43.2% above its estimated GF Value™ of €42.47.
GuruFocus considers SOL SpA to be Significantly Overvalued.
Key valuation signals for MIL:SOL:
Return-on-Tangible-Equity: 21.43% (near median its 10-year median of 20.02)
GF Value™: €42.47 vs. price of €60.80 (43.2% above fair value)
Industry Position: 276.6% above the Chemicals median (#137 of 1566)
No single metric tells the full story. See the MIL:SOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SOL SpA manufactures and sells industrial gases and medical equipment. The firm's two segments are based on product type. The home-care segment, which generates the majority of revenue, sells a variety of medicinal gases including oxygen, nitrogen, nitrous oxide, carbon dioxide, synthetic air, and medical air. The segment also provides medical air services for hospitals. The technical gases segment sells gas-based products to the energy, agricultural, food, metalworking, glass, and electronics industries. More of SOL's revenue comes from Italy than any other country.
78GF Score
Get the complete analysis for MIL:SOL
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