GEA Group AGXSWX:G1A +1.09%85 Return-on-Tangible-Equity is 68.27% as of Mar. 2026, which is 10% below its 10-year median of 75.48. GuruFocus rates XSWX:G1A with a GF Score™ of 85/100 and a GF Value™ of CHF47.35 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,971 Industrial Products companies, GEA Group AG ranks better than 96.2% 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. GEA Group AG's annualized net income for the quarter that ended in Mar. 2026 was CHF363 Mil. GEA Group AG's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF532 Mil. Therefore, GEA Group AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 68.27%.
The historical rank and industry rank for GEA Group AG's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:G1A'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -95.01 Med: 75.48 Max: 244
Current: 85.51
During the past 13 years, GEA Group AG's highest Return-on-Tangible-Equity was 244.00%. The lowest was -95.01%. And the median was 75.48%.
XSWX:G1A's Return-on-Tangible-Equity is ranked better than 96.2% of 2971
companies
in the Industrial Products industry
Industry Median: 6.72
vs XSWX:G1A: 85.51
GEA Group AG (XSWX:G1A) 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.
GEA Group AG Return-on-Tangible-Equity Related Terms
GEA Group AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for GEA Group 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:G1A vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, GEA Group 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.
GEA Group AG Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, GEA Group AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where GEA Group 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 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 68.27% mean?
GEA Group AG (XSWX:G1A) has a Return-on-Tangible-Equity of 68.27% 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 GEA Group AG and its competitors. This is 10% below median its historical median of 75.48. According to the industry distribution chart, GEA Group AG ranks #113 out of 2971 companies in the Industrial Products industry, placing it in the top 3.8%.
Is GEA Group AG's Return-on-Tangible-Equity too high?
GEA Group AG's current Return-on-Tangible-Equity of 68.27% is 10% below median its 10-year median of 75.48. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. GEA Group AG's value of 68.27% is 915.9% above this industry median. Based on the distribution chart, GEA Group AG ranks #113 out of 2971 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, GEA Group AG has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GEA Group AG's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, GEA Group AG ranks #113 out of 2971 companies for Return-on-Tangible-Equity. This places GEA Group AG in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. GEA Group AG's value of 68.27% is 915.9% above this benchmark. While the company's 10-year median is 75.48 vs. the industry median of 6.72, GEA Group 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 Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,971 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. GEA Group AG's current Return-on-Tangible-Equity of 68.27% is 915.9% 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 GEA Group AG and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GEA Group AG's current Return-on-Tangible-Equity is 68.27%, which is 10% below median its own 10-year median of 75.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GEA Group AG stock overvalued right now?
Based on GuruFocus' analysis, GEA Group AG (XSWX:G1A) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF47.35, compared to a current price of CHF55.65 — trading 17.5% above its estimated fair value. The current Return-on-Tangible-Equity is 68.27%, which is 10% below median its 10-year median of 75.48 and 915.9% above the Industrial Products industry median of 6.72. GEA Group AG's overall GF Score™ is 85/100 with 1 warning sign 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 GEA Group AG (XSWX:G1A), the current Return-on-Tangible-Equity is 68.27% 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 GEA Group AG (XSWX:G1A) Overvalued in 2026?
Based on GuruFocus' analysis, GEA Group AG stock appears to be overvalued.
The current stock price of CHF55.65 is trading 17.5% above its estimated GF Value™ of CHF47.35.
GuruFocus considers GEA Group AG to be Modestly Overvalued.
Key valuation signals for XSWX:G1A:
Return-on-Tangible-Equity: 68.27% (10% below median its 10-year median of 75.48)
GF Value™: CHF47.35 vs. price of CHF55.65 (17.5% above fair value)
Industry Position: 915.9% above the Industrial Products median (#113 of 2971)
No single metric tells the full story. See the XSWX:G1A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GEA Group is one of the world's largest suppliers of processing systems and equipment for the food, beverage, and pharmaceutical industries. Across its five divisions, GEA designs and manufactures process engineering equipment and offers turnkey solutions for customers' processing lines or products. GEA also offers a comprehensive aftermarket offering spanning maintenance services and spare parts, and components.
85GF Score
Get the complete analysis for XSWX:G1A
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