UL SolutionsULS -7.96%41 Return-on-Tangible-Equity is 71.88% as of Mar. 2026, which is 160% above its 10-year median of 27.65. GuruFocus rates ULS with a GF Score™ of 41/100. The stock has 1 warning sign investors should review. Among 1,009 Business Services companies, UL Solutions ranks better than 89.1% 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. UL Solutions's annualized net income for the quarter that ended in Mar. 2026 was $368 Mil. UL Solutions's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $512 Mil. Therefore, UL Solutions's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 71.88%.
The historical rank and industry rank for UL Solutions's Return-on-Tangible-Equity or its related term are showing as below:
ULS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.22 Med: 27.65 Max: 1925.93
Current: 93.17
During the past 7 years, UL Solutions's highest Return-on-Tangible-Equity was 1,925.93%. The lowest was 15.22%. And the median was 27.65%.
ULS's Return-on-Tangible-Equity is ranked better than 89.1% of 1009
companies
in the Business Services industry
Industry Median: 10.56
vs ULS: 93.17
UL Solutions (NYSE:ULS) 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.
UL Solutions Return-on-Tangible-Equity Related Terms
UL Solutions Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for UL Solutions'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.
ULS vs GPN, ARMK, CPRT: Return-on-Tangible-Equity Comparison
For the Specialty Business Services subindustry, UL Solutions'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.
UL Solutions Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, UL Solutions's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where UL Solutions'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 71.88% mean?
UL Solutions (ULS) has a Return-on-Tangible-Equity of 71.88% 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 UL Solutions and its competitors. This is 160% above median its historical median of 27.65. Over the past decade, UL Solutions' Return-on-Tangible-Equity has ranged from 15.22 to 1,925.93. According to the industry distribution chart, UL Solutions ranks #110 out of 1009 companies in the Business Services industry, placing it in the top 10.9%.
Is UL Solutions' Return-on-Tangible-Equity too high?
UL Solutions' current Return-on-Tangible-Equity of 71.88% is 160% above median its 10-year median of 27.65. Over the past 10 years, this metric has ranged from a low of 15.22 to a high of 1,925.93. The Business Services industry median Return-on-Tangible-Equity is 10.56. UL Solutions' value of 71.88% is 580.7% above this industry median. Based on the distribution chart, UL Solutions ranks #110 out of 1009 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, UL Solutions has a GF Score™ of 41/100, reflecting its overall financial health beyond just this single metric.
How does UL Solutions' Return-on-Tangible-Equity compare to GPN and ARMK?
According to the Business Services industry distribution chart, UL Solutions ranks #110 out of 1009 companies for Return-on-Tangible-Equity. This places UL Solutions in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.56. UL Solutions' value of 71.88% is 580.7% above this benchmark. Historically, UL Solutions' own Return-on-Tangible-Equity has ranged from 15.22 to 1,925.93 over the past decade. While the company's 10-year median is 27.65 vs. the industry median of 10.56, UL Solutions has consistently been above the industry average. 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 10.56, based on 1,009 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. UL Solutions's current Return-on-Tangible-Equity of 71.88% is 580.7% above the industry median. 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 UL Solutions and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. UL Solutions's current Return-on-Tangible-Equity is 71.88%, which is 160% above median its own 10-year median of 27.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is UL Solutions stock overvalued right now?
UL Solutions (ULS) has a current Return-on-Tangible-Equity of 71.88%. The current Return-on-Tangible-Equity is 71.88%, which is 160% above median its 10-year median of 27.65 and 580.7% above the Business Services industry median of 10.56. UL Solutions' overall GF Score™ is 41/100 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 UL Solutions (ULS), the current Return-on-Tangible-Equity is 71.88% 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.
UL Solutions is a global leader specializing in a broad range of product testing, inspection, and certification services. UL Solutions is the for-profit branch out of three organizations under the UL Enterprise. TIC operations make up nearly all of UL Solutions' total revenue and are composed of two segments: industrial and consumer. UL Solutions' remaining business includes software and advisory, which complements its core TIC offerings. The firm operates globally.
41GF Score
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