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Terra DroneTSE:278A +1.17%9 Return-on-Tangible-Equity is -154.54% as of Jan. 2026. GuruFocus rates TSE:278A with a GF Score™ of 9/100. The stock has 5 warning signs investors should review. Among 336 Aerospace & Defense companies, Terra Drone ranks worse than 89.58% 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. Terra Drone's annualized net income for the quarter that ended in Jan. 2026 was 円-8,050 Mil. Terra Drone's average shareholder tangible equity for the quarter that ended in Jan. 2026 was 円5,209 Mil. Therefore, Terra Drone's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2026 was -154.54%.
The historical rank and industry rank for Terra Drone's Return-on-Tangible-Equity or its related term are showing as below:
TSE:278A'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -48.8 Med: -17.1 Max: -8.21
Current: -48.8
During the past 4 years, Terra Drone's highest Return-on-Tangible-Equity was -8.21%. The lowest was -48.80%. And the median was -17.10%.
TSE:278A's Return-on-Tangible-Equity is ranked worse than 89.58% of 336
companies
in the Aerospace & Defense industry
Industry Median: 8
vs TSE:278A: -48.80
Terra Drone (TSE:278A) 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.
Terra Drone Return-on-Tangible-Equity Related Terms
Terra Drone Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Terra Drone'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.
TSE:278A vs SPCX, GE, RTX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Terra Drone'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.
Terra Drone Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Terra Drone's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Terra Drone'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 (Jan. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -154.54% mean?
Terra Drone (TSE:278A) has a Return-on-Tangible-Equity of -154.54% as of Jan. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Terra Drone and its competitors. According to the industry distribution chart, Terra Drone ranks #301 out of 336 companies in the Aerospace & Defense industry, placing it in the top 89.6%.
Is Terra Drone's Return-on-Tangible-Equity too high?
Terra Drone's current Return-on-Tangible-Equity is -154.54%. Based on the distribution chart, Terra Drone ranks #301 out of 336 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Terra Drone has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Terra Drone's Return-on-Tangible-Equity compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Terra Drone ranks #301 out of 336 companies for Return-on-Tangible-Equity. This places Terra Drone in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.00. 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 an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.00, based on 336 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 Terra Drone and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Terra Drone's current Return-on-Tangible-Equity is -154.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Terra Drone stock overvalued right now?
Terra Drone (TSE:278A) has a current Return-on-Tangible-Equity of -154.54%. The current Return-on-Tangible-Equity is -154.54%. Terra Drone's overall GF Score™ is 9/100 with 5 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 Terra Drone (TSE:278A), the current Return-on-Tangible-Equity is -154.54% as of Jan. 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.
Terra Drone Corp is engaged in developing hardware and software for drones for surveying, inspection, and agriculture, providing related services, and developing and providing systems for managing the safe and efficient operation of drones and flying cars (UTM).
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