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Redwood AIRDWCF -1.43%14 Return-on-Tangible-Equity is -1,667.74% as of May. 2026. GuruFocus rates RDWCF with a GF Score™ of 14/100. Among 2,485 Software companies, Redwood AI ranks worse than 98.95% 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. Redwood AI's annualized net income for the quarter that ended in May. 2026 was $-21.27 Mil. Redwood AI's average shareholder tangible equity for the quarter that ended in May. 2026 was $1.28 Mil. Therefore, Redwood AI's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2026 was -1,667.74%.
The historical rank and industry rank for Redwood AI's Return-on-Tangible-Equity or its related term are showing as below:
RDWCF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1343.34 Med: 0 Max: 0
Current: -1343.34
RDWCF's Return-on-Tangible-Equity is ranked worse than 98.95% of 2485
companies
in the Software industry
Industry Median: 9.9
vs RDWCF: -1343.34
Redwood AI (OTCPK:RDWCF) 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.
Redwood AI Return-on-Tangible-Equity Related Terms
Redwood AI Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Redwood AI'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.
RDWCF vs IBM, ACN, CTSH: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Redwood AI'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.
Redwood AI Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Redwood AI's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Redwood AI'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 (May. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -1,667.74% mean?
Redwood AI (RDWCF) has a Return-on-Tangible-Equity of -1,667.74% as of May. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Redwood AI and its competitors. According to the industry distribution chart, Redwood AI ranks #2459 out of 2485 companies in the Software industry, placing it in the top 99%.
Is Redwood AI's Return-on-Tangible-Equity too high?
Redwood AI's current Return-on-Tangible-Equity is -1,667.74%. Based on the distribution chart, Redwood AI ranks #2459 out of 2485 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Redwood AI has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Redwood AI's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Redwood AI ranks #2459 out of 2485 companies for Return-on-Tangible-Equity. This places Redwood AI in the lower half of its industry. The industry median Return-on-Tangible-Equity is 9.90. 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 9.90, based on 2,485 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 Redwood AI and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redwood AI's current Return-on-Tangible-Equity is -1,667.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood AI stock overvalued right now?
Redwood AI (RDWCF) has a current Return-on-Tangible-Equity of -1,667.74%. The current Return-on-Tangible-Equity is -1,667.74%. Redwood AI's overall GF Score™ is 14/100. 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 Redwood AI (RDWCF), the current Return-on-Tangible-Equity is -1,667.74% as of May. 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.
Redwood AI Corp is a Vancouver-based artificial intelligence company. It is engaged in providing software and analytics solutions for chemical and pharmaceutical development. Its platform integrates AI models, cheminformatics, and operational data to support synthesis planning, process optimization, and supply-chain decision-making, helping reduce time, cost, and risk from early development through commercialization.
14GF Score
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