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Solution DynamicsNZSE:SDL 60 Return-on-Tangible-Equity is 4.26% as of Dec. 2025, which is 93% below its 10-year median of 61.22. GuruFocus rates NZSE:SDL with a GF Score™ of 60/100 and a GF Value™ of NZ$0.99 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,476 Software companies, Solution Dynamics ranks worse than 57.88% 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. Solution Dynamics's annualized net income for the quarter that ended in Dec. 2025 was NZ$0.43 Mil. Solution Dynamics's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NZ$10.06 Mil. Therefore, Solution Dynamics's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 4.26%.
The historical rank and industry rank for Solution Dynamics's Return-on-Tangible-Equity or its related term are showing as below:
NZSE:SDL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.88 Med: 61.22 Max: 70.3
Current: 4.88
During the past 13 years, Solution Dynamics's highest Return-on-Tangible-Equity was 70.30%. The lowest was 4.88%. And the median was 61.22%.
NZSE:SDL's Return-on-Tangible-Equity is ranked worse than 57.88% of 2476
companies
in the Software industry
Industry Median: 8.825
vs NZSE:SDL: 4.88
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.
Solution Dynamics Return-on-Tangible-Equity Related Terms
Solution Dynamics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Solution Dynamics'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.
NZSE:SDL vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Solution Dynamics'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.
Solution Dynamics Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Solution Dynamics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Solution Dynamics'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 4.26% mean?
Solution Dynamics (NZSE:SDL) has a Return-on-Tangible-Equity of 4.26% 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 Solution Dynamics and its competitors. This is 93% below median its historical median of 61.22. Over the past decade, Solution Dynamics' Return-on-Tangible-Equity has ranged from 4.88 to 70.30. According to the industry distribution chart, Solution Dynamics ranks #1433 out of 2476 companies in the Software industry, placing it in the top 57.9%.
Is Solution Dynamics' Return-on-Tangible-Equity too high?
Solution Dynamics' current Return-on-Tangible-Equity of 4.26% is 93% below median its 10-year median of 61.22. Over the past 10 years, this metric has ranged from a low of 4.88 to a high of 70.30. The Software industry median Return-on-Tangible-Equity is 8.83. Solution Dynamics' value of 4.26% is 51.7% below this industry median. Based on the distribution chart, Solution Dynamics ranks #1433 out of 2476 companies in the Software industry, which is below the industry midpoint. Overall, Solution Dynamics has a GF Score™ of 60/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Solution Dynamics' Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, Solution Dynamics ranks #1433 out of 2476 companies for Return-on-Tangible-Equity. This places Solution Dynamics in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.83. Solution Dynamics' value of 4.26% is 51.7% below this benchmark. Historically, Solution Dynamics' own Return-on-Tangible-Equity has ranged from 4.88 to 70.30 over the past decade. While the company's 10-year median is 61.22 vs. the industry median of 8.83, Solution Dynamics has consistently been below 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 2,476 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. Solution Dynamics's current Return-on-Tangible-Equity of 4.26% is 51.7% below 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 Solution Dynamics 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. Solution Dynamics's current Return-on-Tangible-Equity is 4.26%, which is 93% below median its own 10-year median of 61.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solution Dynamics stock overvalued right now?
Based on GuruFocus' analysis, Solution Dynamics (NZSE:SDL) is currently considered Significantly Undervalued. The stock's GF Value™ is NZ$0.99, compared to a current price of NZ$0.60 — trading 39.4% below its estimated fair value. The current Return-on-Tangible-Equity is 4.26%, which is 93% below median its 10-year median of 61.22 and 51.7% below the Software industry median of 8.83. Solution Dynamics' overall GF Score™ is 60/100 with 3 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 Solution Dynamics (NZSE:SDL), the current Return-on-Tangible-Equity is 4.26% 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 Solution Dynamics (NZSE:SDL) Overvalued in 2026?
Based on GuruFocus' analysis, Solution Dynamics stock appears to be undervalued.
The current stock price of NZ$0.60 is trading 39.4% below its estimated GF Value™ of NZ$0.99.
GuruFocus considers Solution Dynamics to be Significantly Undervalued.
Key valuation signals for NZSE:SDL:
Return-on-Tangible-Equity: 4.26% (93% below median its 10-year median of 61.22)
GF Value™: NZ$0.99 vs. price of NZ$0.60 (39.4% below fair value)
Industry Position: 51.7% below the Software median (#1433 of 2476)
No single metric tells the full story. See the NZSE:SDL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solution Dynamics Ltd is a company engaged in providing customer communications solutions. Its products and services are represented by revenue streams: Digital Printing & Document Handling Services; and Software and Technology, Outsourced services. Services include digital print and mail house processing for mail items like invoices, statements, and promotional materials. Software and Technology develop and markets its software products related to multi-channel marketing communications including digital asset management, communication templates, campaign management, document archiving, document composition, and desktop mail solutions among others. Its outsourced services elements are the post, freight, paper, and envelopes.
60GF Score
Get the complete analysis for NZSE:SDL
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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