Linea Directa AseguradoraXMAD:LDA +1.16%69 Return-on-Tangible-Equity is 24.75% as of Dec. 2025, which is 4% above its 10-year median of 23.69. GuruFocus rates XMAD:LDA with a GF Score™ of 69/100 and a GF Value™ of €1.33 (Fairly Valued). Among 500 Insurance companies, Linea Directa Aseguradora ranks better than 79.2% 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. Linea Directa Aseguradora's annualized net income for the quarter that ended in Dec. 2025 was €84 Mil. Linea Directa Aseguradora's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €339 Mil. Therefore, Linea Directa Aseguradora's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 24.75%.
The historical rank and industry rank for Linea Directa Aseguradora's Return-on-Tangible-Equity or its related term are showing as below:
XMAD:LDA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1.57 Med: 23.69 Max: 29.66
Current: 25.95
During the past 6 years, Linea Directa Aseguradora's highest Return-on-Tangible-Equity was 29.66%. The lowest was -1.57%. And the median was 23.69%.
XMAD:LDA's Return-on-Tangible-Equity is ranked better than 79.2% of 500
companies
in the Insurance industry
Industry Median: 13.515
vs XMAD:LDA: 25.95
Linea Directa Aseguradora (XMAD:LDA) 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.
Linea Directa Aseguradora Return-on-Tangible-Equity Related Terms
Linea Directa Aseguradora Return-on-Tangible-Equity Historical Data
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The historical data trend for Linea Directa Aseguradora'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.
Linea Directa Aseguradora Return-on-Tangible-Equity Chart
XMAD:LDA vs CB, PGR, TRV: Return-on-Tangible-Equity Comparison
For the Insurance - Property & Casualty subindustry, Linea Directa Aseguradora'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.
Linea Directa Aseguradora Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Linea Directa Aseguradora's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Linea Directa Aseguradora'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 24.75% mean?
Linea Directa Aseguradora (XMAD:LDA) has a Return-on-Tangible-Equity of 24.75% 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 Linea Directa Aseguradora and its competitors. This is near median its historical median of 23.69. According to the industry distribution chart, Linea Directa Aseguradora ranks #104 out of 500 companies in the Insurance industry, placing it in the top 20.8%.
Is Linea Directa Aseguradora's Return-on-Tangible-Equity too high?
Linea Directa Aseguradora's current Return-on-Tangible-Equity of 24.75% is near median its 10-year median of 23.69. The Insurance industry median Return-on-Tangible-Equity is 13.52. Linea Directa Aseguradora's value of 24.75% is 83.1% above this industry median. Based on the distribution chart, Linea Directa Aseguradora ranks #104 out of 500 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Linea Directa Aseguradora has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Linea Directa Aseguradora's Return-on-Tangible-Equity compare to CB and PGR?
According to the Insurance industry distribution chart, Linea Directa Aseguradora ranks #104 out of 500 companies for Return-on-Tangible-Equity. This places Linea Directa Aseguradora in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 13.52. Linea Directa Aseguradora's value of 24.75% is 83.1% above this benchmark. While the company's 10-year median is 23.69 vs. the industry median of 13.52, Linea Directa Aseguradora 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 an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.52, based on 500 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. Linea Directa Aseguradora's current Return-on-Tangible-Equity of 24.75% is 83.1% 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 Linea Directa Aseguradora and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Linea Directa Aseguradora's current Return-on-Tangible-Equity is 24.75%, which is near median its own 10-year median of 23.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Linea Directa Aseguradora stock overvalued right now?
Based on GuruFocus' analysis, Linea Directa Aseguradora (XMAD:LDA) is currently considered Fairly Valued. The stock's GF Value™ is €1.33, compared to a current price of €1.22 — trading 8.4% below its estimated fair value. The current Return-on-Tangible-Equity is 24.75%, which is near median its 10-year median of 23.69 and 83.1% above the Insurance industry median of 13.52. Linea Directa Aseguradora's overall GF Score™ is 69/100. 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 Linea Directa Aseguradora (XMAD:LDA), the current Return-on-Tangible-Equity is 24.75% 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 Linea Directa Aseguradora (XMAD:LDA) Overvalued in 2026?
Based on GuruFocus' analysis, Linea Directa Aseguradora stock appears to be undervalued.
The current stock price of €1.22 is trading 8.4% below its estimated GF Value™ of €1.33.
GuruFocus considers Linea Directa Aseguradora to be Fairly Valued.
Key valuation signals for XMAD:LDA:
Return-on-Tangible-Equity: 24.75% (near median its 10-year median of 23.69)
GF Value™: €1.33 vs. price of €1.22 (8.4% below fair value)
Industry Position: 83.1% above the Insurance median (#104 of 500)
No single metric tells the full story. See the XMAD:LDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Linea Directa Aseguradora SA is engaged in insurance and reinsurance activities in the motor, home, and other non-life segments. The company has five operating segments; The motor segment which derives maximum revenue, includes private motor insurance and motorbike insurance, The home segment includes multi-risk home insurance products with theft damage, civil liability, fire damage, aesthetic damage, etc, The health segment includes health insurance products under the Vivaz brand, The other insurance segment includes various products with stand-alone policies that are not linked to motor, home or health insurance, such as travel insurance for holders of credit cards and wellness insurance, and The other activities segment mainly relates to auxiliary insurance businesses, and commissions.
69GF Score
Get the complete analysis for XMAD:LDA
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