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. Rockwool AS's annualized net income for the quarter that ended in Mar. 2026 was $-393 Mil. Rockwool AS's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $3,030 Mil. Therefore, Rockwool AS's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -12.97%.
The historical rank and industry rank for Rockwool AS's Return-on-Tangible-Equity or its related term are showing as below:
RKWAF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -6.23 Med: 14.79 Max: 19.89
Current: -6.23
During the past 13 years, Rockwool AS's highest Return-on-Tangible-Equity was 19.89%. The lowest was -6.23%. And the median was 14.79%.
RKWAF's Return-on-Tangible-Equity is ranked worse than 83.57% of 1704
companies
in the Construction industry
Industry Median: 8.22
vs RKWAF: -6.23
Rockwool AS (OTCPK:RKWAF) 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.
Rockwool AS Return-on-Tangible-Equity Related Terms
Rockwool AS Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Rockwool AS'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.
RKWAF vs TT, JCI, CARR: Return-on-Tangible-Equity Comparison
For the Building Products & Equipment subindustry, Rockwool AS'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.
Rockwool AS Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Rockwool AS's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rockwool AS'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 -12.97% mean?
Rockwool AS (RKWAF) has a Return-on-Tangible-Equity of -12.97% 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 Rockwool AS and its competitors. According to the industry distribution chart, Rockwool AS ranks #1424 out of 1704 companies in the Construction industry, placing it in the top 83.6%.
Is Rockwool AS's Return-on-Tangible-Equity too high?
Rockwool AS's current Return-on-Tangible-Equity is -12.97%. Based on the distribution chart, Rockwool AS ranks #1424 out of 1704 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Rockwool AS has a GF Score™ of 92/100, reflecting its overall financial health beyond just this single metric.
How does Rockwool AS's Return-on-Tangible-Equity compare to TT and JCI?
According to the Construction industry distribution chart, Rockwool AS ranks #1424 out of 1704 companies for Return-on-Tangible-Equity. This places Rockwool AS in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.22. 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.22, based on 1,704 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 Rockwool AS and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rockwool AS's current Return-on-Tangible-Equity is -12.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rockwool AS stock overvalued right now?
Rockwool AS (RKWAF) has a current Return-on-Tangible-Equity of -12.97%. The stock's GF Value™ is $38.20, compared to a current price of $34.70 — trading 9.2% below its estimated fair value. The current Return-on-Tangible-Equity is -12.97%. Rockwool AS's overall GF Score™ is 92/100 with 1 warning sign 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 Rockwool AS (RKWAF), the current Return-on-Tangible-Equity is -12.97% 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 Rockwool AS (RKWAF) Overvalued in 2026?
Based on GuruFocus' analysis, Rockwool AS stock appears to be undervalued.
The current stock price of $34.70 is trading 9.2% below its estimated GF Value™ of $38.20.
Key valuation signals for RKWAF:
Return-on-Tangible-Equity: -12.97%
GF Value™: $38.20 vs. price of $34.70 (9.2% below fair value)
No single metric tells the full story. See the RKWAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rockwool AS manufactures and sells building materials, including insulation and roofing systems. The company organizes itself into two segments based on the product: Insulation and Systems. The Insulation segment, sells building, industrial, and technical insulation and external thermal insulation wall systems to the construction industry. The Systems business sells acoustic ceilings and wall systems, external cladding systems, horticultural substrate solutions, engineered fiber solutions, and noise and vibration control to the construction and automotive industries. The majority of revenue is from the Insulation Segment. The majority of sales come from Europe.
92GF Score
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