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SGS AGSGSOF +0.71%82 Return-on-Tangible-Equity is Negative Tangible Equity% as of Dec. 2025. GuruFocus rates SGSOF with a GF Score™ of 82/100 and a GF Value™ of $108.40 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,008 Business Services companies, SGS AG ranks better than 99.8% 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. SGS AG's annualized net income for the quarter that ended in Dec. 2025 was $888 Mil. SGS AG's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $-1,723 Mil. Therefore, SGS AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was Negative Tangible Equity%.
The historical rank and industry rank for SGS AG's Return-on-Tangible-Equity or its related term are showing as below:
SGSOF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 116.52 Med: 170.24 Max: 458.33
Current: Negative Tangible Equity
During the past 13 years, SGS AG's highest Return-on-Tangible-Equity was 458.33%. The lowest was 116.52%. And the median was 170.24%.
SGSOF's Return-on-Tangible-Equity is ranked better than 99.8% of 1008
companies
in the Business Services industry
Industry Median: 10.7
vs SGSOF: Negative Tangible Equity
SGS AG (OTCPK:SGSOF) 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.
SGS AG Return-on-Tangible-Equity Related Terms
SGS AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for SGS AG'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.
SGSOF vs VRSK, EFX, BAH: Return-on-Tangible-Equity Comparison
For the Consulting Services subindustry, SGS AG'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.
SGS AG Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, SGS AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where SGS AG'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 Negative Tangible Equity% mean?
SGS AG (SGSOF) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 SGS AG and its competitors. Over the past decade, SGS AG's Return-on-Tangible-Equity has ranged from 116.52 to 458.33. According to the industry distribution chart, SGS AG ranks #2 out of 1008 companies in the Business Services industry, placing it in the top 0.2%.
Is SGS AG's Return-on-Tangible-Equity too high?
SGS AG's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 116.52 to a high of 458.33. Based on the distribution chart, SGS AG ranks #2 out of 1008 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, SGS AG has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SGS AG's Return-on-Tangible-Equity compare to VRSK and EFX?
According to the Business Services industry distribution chart, SGS AG ranks #2 out of 1008 companies for Return-on-Tangible-Equity. This places SGS AG in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.70. Historically, SGS AG's own Return-on-Tangible-Equity has ranged from 116.52 to 458.33 over the past decade. 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.70, based on 1,008 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 SGS AG and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SGS AG's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SGS AG stock overvalued right now?
Based on GuruFocus' analysis, SGS AG (SGSOF) is currently considered Fairly Valued. The stock's GF Value™ is $108.40, compared to a current price of $117.63 — trading 8.5% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. SGS AG's overall GF Score™ is 82/100 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 SGS AG (SGSOF), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 SGS AG (SGSOF) Overvalued in 2026?
Based on GuruFocus' analysis, SGS AG stock appears to be overvalued.
The current stock price of $117.63 is trading 8.5% above its estimated GF Value™ of $108.40.
GuruFocus considers SGS AG to be Fairly Valued.
No single metric tells the full story. See the SGSOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Switzerland-listed SGS is the largest and one of the oldest companies in the testing, inspection, and certification industry. The company's primary activities involve testing products and materials, inspecting sites/industrial equipment, and certifying products and systems to ensure global/company standards. SGS is one of only three TIC companies operating globally across agriculture, food, life sciences, and transportation services. SGS was first listed in 1981 and employs almost 100,000 people worldwide.
82GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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