Traton SEXSWX:8TRA Return-on-Tangible-Equity is 17.50% as of Mar. 2026, which is 31% below its 10-year median of 25.41. The stock has 7 warning signs investors should review. Among 199 Farm & Heavy Construction Machinery companies, Traton SE ranks better than 85.93% 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. Traton SE's annualized net income for the quarter that ended in Mar. 2026 was CHF819 Mil. Traton SE's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF4,681 Mil. Therefore, Traton SE's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.50%.
The historical rank and industry rank for Traton SE's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:8TRA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1.52 Med: 25.41 Max: 210.13
Current: 27.56
During the past 8 years, Traton SE's highest Return-on-Tangible-Equity was 210.13%. The lowest was -1.52%. And the median was 25.41%.
XSWX:8TRA's Return-on-Tangible-Equity is ranked better than 85.93% of 199
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.27
vs XSWX:8TRA: 27.56
Traton SE (XSWX:8TRA) 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.
Traton SE Return-on-Tangible-Equity Related Terms
Traton SE Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Traton SE'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.
XSWX:8TRA vs CAT, DE, PCAR: Return-on-Tangible-Equity Comparison
For the Farm & Heavy Construction Machinery subindustry, Traton SE'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.
Traton SE Return-on-Tangible-Equity vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Traton SE's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Traton SE'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 17.50% mean?
Traton SE (XSWX:8TRA) has a Return-on-Tangible-Equity of 17.50% 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 Traton SE and its competitors. This is 31% below median its historical median of 25.41. According to the industry distribution chart, Traton SE ranks #28 out of 199 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 14.1%.
Is Traton SE's Return-on-Tangible-Equity too high?
Traton SE's current Return-on-Tangible-Equity of 17.50% is 31% below median its 10-year median of 25.41. The Farm & Heavy Construction Machinery industry median Return-on-Tangible-Equity is 9.27. Traton SE's value of 17.50% is 88.8% above this industry median. Based on the distribution chart, Traton SE ranks #28 out of 199 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers.
How does Traton SE's Return-on-Tangible-Equity compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Traton SE ranks #28 out of 199 companies for Return-on-Tangible-Equity. This places Traton SE in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.27. Traton SE's value of 17.50% is 88.8% above this benchmark. While the company's 10-year median is 25.41 vs. the industry median of 9.27, Traton SE 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 Farm & Heavy Construction Machinery company?
The median Return-on-Tangible-Equity among Farm & Heavy Construction Machinery companies is 9.27, based on 199 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. Traton SE's current Return-on-Tangible-Equity of 17.50% is 88.8% 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 Traton SE and its competitors. For the Farm & Heavy Construction Machinery industry, the median Return-on-Tangible-Equity is 9.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Traton SE's current Return-on-Tangible-Equity is 17.50%, which is 31% below median its own 10-year median of 25.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Traton SE stock overvalued right now?
Traton SE (XSWX:8TRA) has a current Return-on-Tangible-Equity of 17.50%. The stock's GF Value™ is CHF25.83, compared to a current price of CHF29.70 — trading 15% above its estimated fair value. The current Return-on-Tangible-Equity is 17.50%, which is 31% below median its 10-year median of 25.41 and 88.8% above the Farm & Heavy Construction Machinery industry median of 9.27. 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 Traton SE (XSWX:8TRA), the current Return-on-Tangible-Equity is 17.50% 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.
Traton SE is the parent and holding company of the TRATON GROUP, one of the world's commercial vehicle manufacturers, with its brands Scania, MAN, International, and Volkswagen Truck and Bus. The Group's product portfolio comprises trucks, buses, and light-duty commercial vehicles. Transforming Transportation Together. For a sustainable world, this intention underlines the Company's ambition to have a lasting and sustainable impact on the commercial vehicle business and on the Group's commercial growth.
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