BKW AGXSWX:BKW -0.45%76 Return-on-Tangible-Equity is 8.54% as of Dec. 2025, which is 40% below its 10-year median of 14.17. GuruFocus rates XSWX:BKW with a GF Score™ of 76/100 and a GF Value™ of CHF149.74 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 425 Utilities - Independent Power Producers companies, BKW AG ranks better than 62.82% 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. BKW AG's annualized net income for the quarter that ended in Dec. 2025 was CHF340 Mil. BKW AG's average shareholder tangible equity for the quarter that ended in Dec. 2025 was CHF3,986 Mil. Therefore, BKW AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 8.54%.
The historical rank and industry rank for BKW AG's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:BKW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.5 Med: 14.17 Max: 19.91
Current: 9.01
During the past 13 years, BKW AG's highest Return-on-Tangible-Equity was 19.91%. The lowest was 7.50%. And the median was 14.17%.
XSWX:BKW's Return-on-Tangible-Equity is ranked better than 62.82% of 425
companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.71
vs XSWX:BKW: 9.01
BKW AG (XSWX:BKW) 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.
BKW AG Return-on-Tangible-Equity Related Terms
BKW AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for BKW AG'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.
BKW AG Return-on-Tangible-Equity Competitor Comparison
For the Utilities - Renewable subindustry, BKW AG'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.
BKW AG Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, BKW AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where BKW AG'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 8.54% mean?
BKW AG (XSWX:BKW) has a Return-on-Tangible-Equity of 8.54% 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 BKW AG and its competitors. This is 40% below median its historical median of 14.17. Over the past decade, BKW AG's Return-on-Tangible-Equity has ranged from 7.50 to 19.91. According to the industry distribution chart, BKW AG ranks #158 out of 425 companies in the Utilities - Independent Power Producers industry, placing it in the top 37.2%.
Is BKW AG's Return-on-Tangible-Equity too high?
BKW AG's current Return-on-Tangible-Equity of 8.54% is 40% below median its 10-year median of 14.17. Over the past 10 years, this metric has ranged from a low of 7.50 to a high of 19.91. The Utilities - Independent Power Producers industry median Return-on-Tangible-Equity is 4.71. BKW AG's value of 8.54% is 81.3% above this industry median. Based on the distribution chart, BKW AG ranks #158 out of 425 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, BKW AG has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does BKW AG's Return-on-Tangible-Equity compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, BKW AG ranks #158 out of 425 companies for Return-on-Tangible-Equity. This puts BKW AG in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.71. BKW AG's value of 8.54% is 81.3% above this benchmark. Historically, BKW AG's own Return-on-Tangible-Equity has ranged from 7.50 to 19.91 over the past decade. While the company's 10-year median is 14.17 vs. the industry median of 4.71, BKW AG 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 4.71, based on 425 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. BKW AG's current Return-on-Tangible-Equity of 8.54% is 81.3% 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 BKW AG and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BKW AG's current Return-on-Tangible-Equity is 8.54%, which is 40% below median its own 10-year median of 14.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BKW AG stock overvalued right now?
Based on GuruFocus' analysis, BKW AG (XSWX:BKW) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF149.74, compared to a current price of CHF133.70 — trading 10.7% below its estimated fair value. The current Return-on-Tangible-Equity is 8.54%, which is 40% below median its 10-year median of 14.17 and 81.3% above the Utilities - Independent Power Producers industry median of 4.71. BKW AG's overall GF Score™ is 76/100 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 BKW AG (XSWX:BKW), the current Return-on-Tangible-Equity is 8.54% 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 BKW AG (XSWX:BKW) Overvalued in 2026?
Based on GuruFocus' analysis, BKW AG stock appears to be undervalued.
The current stock price of CHF133.70 is trading 10.7% below its estimated GF Value™ of CHF149.74.
GuruFocus considers BKW AG to be Modestly Undervalued.
Key valuation signals for XSWX:BKW:
Return-on-Tangible-Equity: 8.54% (40% below median its 10-year median of 14.17)
GF Value™: CHF149.74 vs. price of CHF133.70 (10.7% below fair value)
Industry Position: 81.3% above the Utilities - Independent Power Producers median (#158 of 425)
No single metric tells the full story. See the XSWX:BKW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BKW AG is an international energy and infrastructure company, offering integrated solutions in the fields of energy, buildings, and infrastructure. It operates in three reportable business segments: Energy Solutions, Power Grid, and Infrastructure and Buildings. Maximum revenue is generated from the Energy Solutions segment, which builds, operates, and maintains BKW's portfolio of power plants in Switzerland and abroad. It also includes the sale of energy in Switzerland, trading in electricity, certificates, and raw materials, as well as wind, solar, and smart energy services. Geographically, the group generates maximum revenue from its business in Switzerland, followed by Germany, Italy, France, and other countries.
76GF Score
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