Carlo Gavazzi Holding AGXSWX:GAV +2.85%73 Return-on-Tangible-Equity is 3.56% as of Mar. 2026, which is 72% below its 10-year median of 12.50. GuruFocus rates XSWX:GAV with a GF Score™ of 73/100 and a GF Value™ of CHF210.60 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,971 Industrial Products companies, Carlo Gavazzi Holding AG ranks worse than 71.36% 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. Carlo Gavazzi Holding AG's annualized net income for the quarter that ended in Mar. 2026 was CHF4.4 Mil. Carlo Gavazzi Holding AG's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF124.6 Mil. Therefore, Carlo Gavazzi Holding AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 3.56%.
The historical rank and industry rank for Carlo Gavazzi Holding AG's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:GAV'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.44 Med: 12.5 Max: 24.39
Current: 1.45
During the past 13 years, Carlo Gavazzi Holding AG's highest Return-on-Tangible-Equity was 24.39%. The lowest was 1.44%. And the median was 12.50%.
XSWX:GAV's Return-on-Tangible-Equity is ranked worse than 71.36% of 2971
companies
in the Industrial Products industry
Industry Median: 6.72
vs XSWX:GAV: 1.45
Carlo Gavazzi Holding AG (XSWX:GAV) 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.
Carlo Gavazzi Holding AG Return-on-Tangible-Equity Related Terms
Carlo Gavazzi Holding AG Return-on-Tangible-Equity Historical Data
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The historical data trend for Carlo Gavazzi Holding 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.
Carlo Gavazzi Holding AG Return-on-Tangible-Equity Chart
XSWX:GAV vs VRT, BE, HUBB: Return-on-Tangible-Equity Comparison
For the Electrical Equipment & Parts subindustry, Carlo Gavazzi Holding 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.
Carlo Gavazzi Holding AG Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Carlo Gavazzi Holding AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Carlo Gavazzi Holding 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 (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 3.56% mean?
Carlo Gavazzi Holding AG (XSWX:GAV) has a Return-on-Tangible-Equity of 3.56% 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 Carlo Gavazzi Holding AG and its competitors. This is 72% below median its historical median of 12.50. Over the past decade, Carlo Gavazzi Holding AG's Return-on-Tangible-Equity has ranged from 1.44 to 24.39. According to the industry distribution chart, Carlo Gavazzi Holding AG ranks #2120 out of 2971 companies in the Industrial Products industry, placing it in the top 71.4%.
Is Carlo Gavazzi Holding AG's Return-on-Tangible-Equity too high?
Carlo Gavazzi Holding AG's current Return-on-Tangible-Equity of 3.56% is 72% below median its 10-year median of 12.50. Over the past 10 years, this metric has ranged from a low of 1.44 to a high of 24.39. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Carlo Gavazzi Holding AG's value of 3.56% is 47% below this industry median. Based on the distribution chart, Carlo Gavazzi Holding AG ranks #2120 out of 2971 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Carlo Gavazzi Holding AG has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Carlo Gavazzi Holding AG's Return-on-Tangible-Equity compare to VRT and BE?
According to the Industrial Products industry distribution chart, Carlo Gavazzi Holding AG ranks #2120 out of 2971 companies for Return-on-Tangible-Equity. This places Carlo Gavazzi Holding AG in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.72. Carlo Gavazzi Holding AG's value of 3.56% is 47% below this benchmark. Historically, Carlo Gavazzi Holding AG's own Return-on-Tangible-Equity has ranged from 1.44 to 24.39 over the past decade. While the company's 10-year median is 12.50 vs. the industry median of 6.72, Carlo Gavazzi Holding AG has consistently been below 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. Carlo Gavazzi Holding AG's current Return-on-Tangible-Equity of 3.56% is 47% below 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 Carlo Gavazzi Holding 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. Carlo Gavazzi Holding AG's current Return-on-Tangible-Equity is 3.56%, which is 72% below median its own 10-year median of 12.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carlo Gavazzi Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Carlo Gavazzi Holding AG (XSWX:GAV) is currently considered Significantly Undervalued. The stock's GF Value™ is CHF210.60, compared to a current price of CHF144.50 — trading 31.4% below its estimated fair value. The current Return-on-Tangible-Equity is 3.56%, which is 72% below median its 10-year median of 12.50 and 47% below the Industrial Products industry median of 6.72. Carlo Gavazzi Holding AG's overall GF Score™ is 73/100 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 Carlo Gavazzi Holding AG (XSWX:GAV), the current Return-on-Tangible-Equity is 3.56% 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 Carlo Gavazzi Holding AG (XSWX:GAV) Overvalued in 2026?
Based on GuruFocus' analysis, Carlo Gavazzi Holding AG stock appears to be undervalued.
The current stock price of CHF144.50 is trading 31.4% below its estimated GF Value™ of CHF210.60.
GuruFocus considers Carlo Gavazzi Holding AG to be Significantly Undervalued.
Key valuation signals for XSWX:GAV:
Return-on-Tangible-Equity: 3.56% (72% below median its 10-year median of 12.50)
GF Value™: CHF210.60 vs. price of CHF144.50 (31.4% below fair value)
Industry Position: 47% below the Industrial Products median (#2120 of 2971)
No single metric tells the full story. See the XSWX:GAV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carlo Gavazzi Holding AG is engaged in the designing, manufacturing, and marketing of electronic control components for industrial and building automation markets. The product portfolio of the company comprises sensors, monitoring relays, timers, energy management systems, solid-state relays, safety devices, Fieldbus systems, and others. Its products are marketed through a network of sales companies and independent national distributors. It has operational footprints across Switzerland, Italy, other Europe, the Middle East and Africa, the United States of America, other North America, and Asia.
73GF Score
Get the complete analysis for XSWX:GAV
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