Axia EnergiaXMAD:XAXIA 78 Return-on-Tangible-Equity is 24.84% as of Mar. 2026, which is 112% above its 10-year median of 11.70. GuruFocus rates XMAD:XAXIA with a GF Score™ of 78/100 and a GF Value™ of €6.87 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 426 Utilities - Independent Power Producers companies, Axia Energia ranks better than 86.62% 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. Axia Energia's annualized net income for the quarter that ended in Mar. 2026 was €1,740 Mil. Axia Energia's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €7,004 Mil. Therefore, Axia Energia's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 24.84%.
The historical rank and industry rank for Axia Energia's Return-on-Tangible-Equity or its related term are showing as below:
XMAD:XAXIA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.15 Med: 11.7 Max: 30.1
Current: 23.31
During the past 13 years, Axia Energia's highest Return-on-Tangible-Equity was 30.10%. The lowest was -4.15%. And the median was 11.70%.
XMAD:XAXIA's Return-on-Tangible-Equity is ranked better than 86.62% of 426
companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.85
vs XMAD:XAXIA: 23.31
Axia Energia (XMAD:XAXIA) 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.
Axia Energia Return-on-Tangible-Equity Related Terms
Axia Energia Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Axia Energia'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.
Axia Energia Return-on-Tangible-Equity Competitor Comparison
For the Utilities - Renewable subindustry, Axia Energia'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.
Axia Energia Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Axia Energia's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Axia Energia'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 24.84% mean?
Axia Energia (XMAD:XAXIA) has a Return-on-Tangible-Equity of 24.84% 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 Axia Energia and its competitors. This is 112% above median its historical median of 11.70. According to the industry distribution chart, Axia Energia ranks #57 out of 426 companies in the Utilities - Independent Power Producers industry, placing it in the top 13.4%.
Is Axia Energia's Return-on-Tangible-Equity too high?
Axia Energia's current Return-on-Tangible-Equity of 24.84% is 112% above median its 10-year median of 11.70. The Utilities - Independent Power Producers industry median Return-on-Tangible-Equity is 4.85. Axia Energia's value of 24.84% is 412.2% above this industry median. Based on the distribution chart, Axia Energia ranks #57 out of 426 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Axia Energia has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Axia Energia's Return-on-Tangible-Equity compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Axia Energia ranks #57 out of 426 companies for Return-on-Tangible-Equity. This places Axia Energia in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.85. Axia Energia's value of 24.84% is 412.2% above this benchmark. While the company's 10-year median is 11.70 vs. the industry median of 4.85, Axia Energia 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 Utilities - Independent Power Producers company?
The median Return-on-Tangible-Equity among Utilities - Independent Power Producers companies is 4.85, based on 426 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. Axia Energia's current Return-on-Tangible-Equity of 24.84% is 412.2% 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 Axia Energia and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axia Energia's current Return-on-Tangible-Equity is 24.84%, which is 112% above median its own 10-year median of 11.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axia Energia stock overvalued right now?
Based on GuruFocus' analysis, Axia Energia (XMAD:XAXIA) is currently considered Modestly Overvalued. The stock's GF Value™ is €6.87, compared to a current price of €8.95 — trading 30.3% above its estimated fair value. The current Return-on-Tangible-Equity is 24.84%, which is 112% above median its 10-year median of 11.70 and 412.2% above the Utilities - Independent Power Producers industry median of 4.85. Axia Energia's overall GF Score™ is 78/100 with 4 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 Axia Energia (XMAD:XAXIA), the current Return-on-Tangible-Equity is 24.84% 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 Axia Energia (XMAD:XAXIA) Overvalued in 2026?
Based on GuruFocus' analysis, Axia Energia stock appears to be overvalued.
The current stock price of €8.95 is trading 30.3% above its estimated GF Value™ of €6.87.
GuruFocus considers Axia Energia to be Modestly Overvalued.
Key valuation signals for XMAD:XAXIA:
Return-on-Tangible-Equity: 24.84% (112% above median its 10-year median of 11.70)
GF Value™: €6.87 vs. price of €8.95 (30.3% above fair value)
Industry Position: 412.2% above the Utilities - Independent Power Producers median (#57 of 426)
No single metric tells the full story. See the XMAD:XAXIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Axia Energia is engaged in the generation, transmission, and commercialization of electricity in Brazil. The company operates a portfolio of wind, thermal, hydro, and nuclear power plants located throughout the country.
78GF Score
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