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. Clariant AG's annualized net income for the quarter that ended in Dec. 2025 was CHF-202 Mil. Clariant AG's average shareholder tangible equity for the quarter that ended in Dec. 2025 was CHF485 Mil. Therefore, Clariant AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -41.69%.
The historical rank and industry rank for Clariant AG's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:CLN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -13.74 Med: 27.58 Max: 71.18
Current: -13.74
During the past 13 years, Clariant AG's highest Return-on-Tangible-Equity was 71.18%. The lowest was -13.74%. And the median was 27.58%.
XSWX:CLN's Return-on-Tangible-Equity is ranked worse than 88.48% of 1571
companies
in the Chemicals industry
Industry Median: 5.7
vs XSWX:CLN: -13.74
Clariant AG (XSWX:CLN) 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.
Clariant AG Return-on-Tangible-Equity Related Terms
Clariant AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Clariant 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.
XSWX:CLN vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Clariant 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.
Clariant AG Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Clariant AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Clariant 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 -41.69% mean?
Clariant AG (XSWX:CLN) has a Return-on-Tangible-Equity of -41.69% 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 Clariant AG and its competitors. According to the industry distribution chart, Clariant AG ranks #1390 out of 1571 companies in the Chemicals industry, placing it in the top 88.5%.
Is Clariant AG's Return-on-Tangible-Equity too high?
Clariant AG's current Return-on-Tangible-Equity is -41.69%. Based on the distribution chart, Clariant AG ranks #1390 out of 1571 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Clariant AG has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Clariant AG's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Clariant AG ranks #1390 out of 1571 companies for Return-on-Tangible-Equity. This places Clariant AG in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.70. 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.70, based on 1,571 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. 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 Clariant AG and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clariant AG's current Return-on-Tangible-Equity is -41.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clariant AG stock overvalued right now?
Based on GuruFocus' analysis, Clariant AG (XSWX:CLN) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF9.92, compared to a current price of CHF7.05 — trading 28.9% below its estimated fair value. The current Return-on-Tangible-Equity is -41.69%. Clariant AG's overall GF Score™ is 61/100 with 5 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 Clariant AG (XSWX:CLN), the current Return-on-Tangible-Equity is -41.69% 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 Clariant AG (XSWX:CLN) Overvalued in 2026?
Based on GuruFocus' analysis, Clariant AG stock appears to be undervalued.
The current stock price of CHF7.05 is trading 28.9% below its estimated GF Value™ of CHF9.92.
GuruFocus considers Clariant AG to be Modestly Undervalued.
Key valuation signals for XSWX:CLN:
Return-on-Tangible-Equity: -41.69%
GF Value™: CHF9.92 vs. price of CHF7.05 (28.9% below fair value)
No single metric tells the full story. See the XSWX:CLN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Clariant AG is a Switzerland-based specialty chemicals company with world-wide operations. It develops, manufactures, distributes, and sells a broad range of specialty chemicals, which play a key role in its customers' manufacturing and treatment processes or add value to their end products. The company reports in three business areas: care chemicals, absorbents and additives and catalysts. Care chemicals mainly targets consumer end markets such as personal care and homecare, but it also has an industrial component. Absorbents and additives encompass Clariant's coatings and adhesives, absorbents, and plastics segments. Catalysts manufacturers process catalysts, mainly for petrochemical and syngas plants.
61GF Score
Get the complete analysis for XSWX:CLN
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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