TotvsTTVSY +1.18%66 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates TTVSY with a GF Score™ of 66/100 and a GF Value™ of $17.94 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,476 Software companies, Totvs ranks better than 90.87% 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. Totvs's annualized net income for the quarter that ended in Mar. 2026 was $175 Mil. Totvs's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-114 Mil. Therefore, Totvs's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Totvs's Return-on-Tangible-Equity or its related term are showing as below:
TTVSY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 16.31 Med: 56.5 Max: 589.93
Current: 589.93
During the past 13 years, Totvs's highest Return-on-Tangible-Equity was 589.93%. The lowest was 16.31%. And the median was 56.50%.
TTVSY's Return-on-Tangible-Equity is ranked better than 90.87% of 2476
companies
in the Software industry
Industry Median: 8.82
vs TTVSY: 589.93
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.
Totvs Return-on-Tangible-Equity Related Terms
Totvs Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Totvs'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.
TTVSY vs UBER, SHOP, CRM: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Totvs'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.
Totvs Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Totvs's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Totvs'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 Negative Tangible Equity% mean?
Totvs (TTVSY) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Totvs and its competitors. Over the past decade, Totvs' Return-on-Tangible-Equity has ranged from 16.31 to 589.93. According to the industry distribution chart, Totvs ranks #226 out of 2476 companies in the Software industry, placing it in the top 9.1%.
Is Totvs' Return-on-Tangible-Equity too high?
Totvs' current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 16.31 to a high of 589.93. Based on the distribution chart, Totvs ranks #226 out of 2476 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Totvs has a GF Score™ of 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Totvs' Return-on-Tangible-Equity compare to UBER and SHOP?
According to the Software industry distribution chart, Totvs ranks #226 out of 2476 companies for Return-on-Tangible-Equity. This places Totvs in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.82. Historically, Totvs' own Return-on-Tangible-Equity has ranged from 16.31 to 589.93 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 8.82, based on 2,476 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 Totvs and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Totvs'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 Totvs stock overvalued right now?
Based on GuruFocus' analysis, Totvs (TTVSY) is currently considered Significantly Undervalued. The stock's GF Value™ is $17.94, compared to a current price of $11.62 — trading 35.2% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Totvs' overall GF Score™ is 66/100 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 Totvs (TTVSY), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Totvs (TTVSY) Overvalued in 2026?
Based on GuruFocus' analysis, Totvs stock appears to be undervalued.
The current stock price of $11.62 is trading 35.2% below its estimated GF Value™ of $17.94.
GuruFocus considers Totvs to be Significantly Undervalued.
No single metric tells the full story. See the TTVSY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Totvs SA is a provider of information technology solutions to small and medium enterprises in the education, government, healthcare, and retail end markets. The Company's business purpose is to provide business solutions for companies of all sizes, through the development and sale of management software, productivity platforms, collaboration, and data intelligence, digital marketing, as well as the provision of implementation, consulting, advisory, maintenance services, e-commerce, and mobility. The Company operates in three reportable segments, which include the TOTVS Management segment, the RD Station segment, and the TOTVS Techfin segment. The majority of its revenues is generated from the TOTVS Management segment.
66GF Score
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