Sto SE KGaAWBO:STOG +3.39%63 Return-on-Tangible-Equity is 6.62% as of Dec. 2025, which is 51% below its 10-year median of 13.51. GuruFocus rates WBO:STOG with a GF Score™ of 63/100 and a GF Value™ of €137.87. The stock has 3 warning signs investors should review. Among 1,704 Construction companies, Sto SE KGaA ranks worse than 58.33% 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. Sto SE KGaA's annualized net income for the quarter that ended in Dec. 2025 was €46 Mil. Sto SE KGaA's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €691 Mil. Therefore, Sto SE KGaA's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 6.62%.
The historical rank and industry rank for Sto SE KGaA's Return-on-Tangible-Equity or its related term are showing as below:
WBO:STOG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.51 Med: 13.51 Max: 18.25
Current: 5.68
During the past 13 years, Sto SE KGaA's highest Return-on-Tangible-Equity was 18.25%. The lowest was 5.51%. And the median was 13.51%.
WBO:STOG's Return-on-Tangible-Equity is ranked worse than 58.33% of 1704
companies
in the Construction industry
Industry Median: 8.245
vs WBO:STOG: 5.68
Sto SE KGaA (WBO:STOG) 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.
Sto SE KGaA Return-on-Tangible-Equity Related Terms
Sto SE KGaA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sto SE KGaA'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.
WBO:STOG vs TT, JCI, CARR: Return-on-Tangible-Equity Comparison
For the Building Products & Equipment subindustry, Sto SE KGaA'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.
Sto SE KGaA Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Sto SE KGaA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sto SE KGaA'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 6.62% mean?
Sto SE KGaA (WBO:STOG) has a Return-on-Tangible-Equity of 6.62% 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 Sto SE KGaA and its competitors. This is 51% below median its historical median of 13.51. Over the past decade, Sto SE KGaA's Return-on-Tangible-Equity has ranged from 5.51 to 18.25. According to the industry distribution chart, Sto SE KGaA ranks #994 out of 1704 companies in the Construction industry, placing it in the top 58.3%.
Is Sto SE KGaA's Return-on-Tangible-Equity too high?
Sto SE KGaA's current Return-on-Tangible-Equity of 6.62% is 51% below median its 10-year median of 13.51. Over the past 10 years, this metric has ranged from a low of 5.51 to a high of 18.25. The Construction industry median Return-on-Tangible-Equity is 8.25. Sto SE KGaA's value of 6.62% is 19.7% below this industry median. Based on the distribution chart, Sto SE KGaA ranks #994 out of 1704 companies in the Construction industry, which is below the industry midpoint. Overall, Sto SE KGaA has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does Sto SE KGaA's Return-on-Tangible-Equity compare to TT and JCI?
According to the Construction industry distribution chart, Sto SE KGaA ranks #994 out of 1704 companies for Return-on-Tangible-Equity. This places Sto SE KGaA in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.25. Sto SE KGaA's value of 6.62% is 19.7% below this benchmark. Historically, Sto SE KGaA's own Return-on-Tangible-Equity has ranged from 5.51 to 18.25 over the past decade. While the company's 10-year median is 13.51 vs. the industry median of 8.25, Sto SE KGaA has consistently been below 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.25, based on 1,704 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. Sto SE KGaA's current Return-on-Tangible-Equity of 6.62% is 19.7% below 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 Sto SE KGaA and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sto SE KGaA's current Return-on-Tangible-Equity is 6.62%, which is 51% below median its own 10-year median of 13.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sto SE KGaA stock overvalued right now?
Sto SE KGaA (WBO:STOG) has a current Return-on-Tangible-Equity of 6.62%. The stock's GF Value™ is €137.87, compared to a current price of €94.50 — trading 31.5% below its estimated fair value. The current Return-on-Tangible-Equity is 6.62%, which is 51% below median its 10-year median of 13.51 and 19.7% below the Construction industry median of 8.25. Sto SE KGaA's overall GF Score™ is 63/100 with 3 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 Sto SE KGaA (WBO:STOG), the current Return-on-Tangible-Equity is 6.62% 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 Sto SE KGaA (WBO:STOG) Overvalued in 2026?
Based on GuruFocus' analysis, Sto SE KGaA stock appears to be undervalued.
The current stock price of €94.50 is trading 31.5% below its estimated GF Value™ of €137.87.
Key valuation signals for WBO:STOG:
Return-on-Tangible-Equity: 6.62% (51% below median its 10-year median of 13.51)
GF Value™: €137.87 vs. price of €94.50 (31.5% below fair value)
Industry Position: 19.7% below the Construction median (#994 of 1704)
No single metric tells the full story. See the WBO:STOG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sto SE & Co KGaA is a manufacturer of products and systems for building coatings. The company operates in the geographical segments: Western Europe, Northern/Eastern Europe, and America/Asia/Pacific. It derives maximum revenue from Western Europe. The products of the company include facade systems & surface finishes, Acoustic systems, StoColor systems, Interior, Floor coatings, Concrete Restoration, and others.
63GF Score
Get the complete analysis for WBO:STOG
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
WBO:STOG has been successfully added to your 
