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. Smith Micro Software's annualized net income for the quarter that ended in Mar. 2026 was $-15.59 Mil. Smith Micro Software's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $0.46 Mil. Therefore, Smith Micro Software's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -3,370.38%.
The historical rank and industry rank for Smith Micro Software's Return-on-Tangible-Equity or its related term are showing as below:
SMSI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2501.07 Med: -209.84 Max: 40.47
Current: -2501.07
During the past 13 years, Smith Micro Software's highest Return-on-Tangible-Equity was 40.47%. The lowest was -2,501.07%. And the median was -209.84%.
SMSI's Return-on-Tangible-Equity is ranked worse than 99.64% of 2470
companies
in the Software industry
Industry Median: 8.77
vs SMSI: -2501.07
Smith Micro Software (NAS:SMSI) 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.
Smith Micro Software Return-on-Tangible-Equity Related Terms
Smith Micro Software Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Smith Micro Software'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.
Smith Micro Software Return-on-Tangible-Equity Chart
SMSI vs TRSO, CINGF, KNRX: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Smith Micro Software'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.
Smith Micro Software Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Smith Micro Software's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Smith Micro Software'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 -3,370.38% mean?
Smith Micro Software (SMSI) has a Return-on-Tangible-Equity of -3,370.38% 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 Smith Micro Software and its competitors. According to the industry distribution chart, Smith Micro Software ranks #2461 out of 2470 companies in the Software industry, placing it in the top 99.6%.
Is Smith Micro Software's Return-on-Tangible-Equity too high?
Smith Micro Software's current Return-on-Tangible-Equity is -3,370.38%. Based on the distribution chart, Smith Micro Software ranks #2461 out of 2470 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Smith Micro Software has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Smith Micro Software's Return-on-Tangible-Equity compare to TRSO and CINGF?
According to the Software industry distribution chart, Smith Micro Software ranks #2461 out of 2470 companies for Return-on-Tangible-Equity. This places Smith Micro Software in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.77. 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 8.77, based on 2,470 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 Smith Micro Software and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith Micro Software's current Return-on-Tangible-Equity is -3,370.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smith Micro Software stock overvalued right now?
Based on GuruFocus' analysis, Smith Micro Software (SMSI) is currently considered Fairly Valued. The stock's GF Value™ is $2.38, compared to a current price of $2.59 — trading 8.8% above its estimated fair value. The current Return-on-Tangible-Equity is -3,370.38%. Smith Micro Software's overall GF Score™ is 56/100 with 4 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 Smith Micro Software (SMSI), the current Return-on-Tangible-Equity is -3,370.38% 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 Smith Micro Software (SMSI) Overvalued in 2026?
Based on GuruFocus' analysis, Smith Micro Software stock appears to be overvalued.
The current stock price of $2.59 is trading 8.8% above its estimated GF Value™ of $2.38.
GuruFocus considers Smith Micro Software to be Fairly Valued.
Key valuation signals for SMSI:
Return-on-Tangible-Equity: -3,370.38%
GF Value™: $2.38 vs. price of $2.59 (8.8% above fair value)
No single metric tells the full story. See the SMSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smith Micro Software Inc provides software solutions that simplify and enhance the mobile experience to some of the wireless service providers around the globe. The company's solutions include SafePath product suite provides comprehensive and easy-to-use tools to protect family digital lifestyles and manage connected devices both inside and outside the home; CommSuite premium messaging platform helps mobile service providers deliver a next-generation voicemail experience to mobile subscribers, while monetizing a legacy cost-center; and ViewSpot its retail display management platform provided wireless carriers and retailers with a way to bring powerful on-screen, interactive demos to life. It operates in single segment: Wireless.
56GF Score
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