HELLA GmbH KGaAXSWX:HLE 74 Return-on-Tangible-Equity is 5.62% as of Mar. 2026, which is 63% below its 10-year median of 15.19. GuruFocus rates XSWX:HLE with a GF Score™ of 74/100 and a GF Value™ of CHF73.73 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,285 Vehicles & Parts companies, HELLA GmbH KGaA ranks worse than 64.05% 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. HELLA GmbH KGaA's annualized net income for the quarter that ended in Mar. 2026 was CHF119 Mil. HELLA GmbH KGaA's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF2,122 Mil. Therefore, HELLA GmbH KGaA's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 5.62%.
The historical rank and industry rank for HELLA GmbH KGaA's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:HLE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -19.43 Med: 15.19 Max: 26.55
Current: 4.09
During the past 13 years, HELLA GmbH KGaA's highest Return-on-Tangible-Equity was 26.55%. The lowest was -19.43%. And the median was 15.19%.
XSWX:HLE's Return-on-Tangible-Equity is ranked worse than 64.05% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.49
vs XSWX:HLE: 4.09
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.
HELLA GmbH KGaA Return-on-Tangible-Equity Related Terms
HELLA GmbH KGaA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for HELLA GmbH KGaA'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:HLE vs ORLY, AZO: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, HELLA GmbH KGaA'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.
HELLA GmbH KGaA Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, HELLA GmbH KGaA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where HELLA GmbH KGaA'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 5.62% mean?
HELLA GmbH KGaA (XSWX:HLE) has a Return-on-Tangible-Equity of 5.62% 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 HELLA GmbH KGaA and its competitors. This is 63% below median its historical median of 15.19. According to the industry distribution chart, HELLA GmbH KGaA ranks #823 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 64%.
Is HELLA GmbH KGaA's Return-on-Tangible-Equity too high?
HELLA GmbH KGaA's current Return-on-Tangible-Equity of 5.62% is 63% below median its 10-year median of 15.19. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.49. HELLA GmbH KGaA's value of 5.62% is 25% below this industry median. Based on the distribution chart, HELLA GmbH KGaA ranks #823 out of 1285 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, HELLA GmbH KGaA has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HELLA GmbH KGaA's Return-on-Tangible-Equity compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, HELLA GmbH KGaA ranks #823 out of 1285 companies for Return-on-Tangible-Equity. This places HELLA GmbH KGaA in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.49. HELLA GmbH KGaA's value of 5.62% is 25% below this benchmark. While the company's 10-year median is 15.19 vs. the industry median of 7.49, HELLA GmbH KGaA 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 a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.49, based on 1,285 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. HELLA GmbH KGaA's current Return-on-Tangible-Equity of 5.62% is 25% 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 HELLA GmbH KGaA and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HELLA GmbH KGaA's current Return-on-Tangible-Equity is 5.62%, which is 63% below median its own 10-year median of 15.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HELLA GmbH KGaA stock overvalued right now?
Based on GuruFocus' analysis, HELLA GmbH KGaA (XSWX:HLE) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF73.73, compared to a current price of CHF65.70 — trading 10.9% below its estimated fair value. The current Return-on-Tangible-Equity is 5.62%, which is 63% below median its 10-year median of 15.19 and 25% below the Vehicles & Parts industry median of 7.49. HELLA GmbH KGaA's overall GF Score™ is 74/100 with 7 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 HELLA GmbH KGaA (XSWX:HLE), the current Return-on-Tangible-Equity is 5.62% 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 HELLA GmbH KGaA (XSWX:HLE) Overvalued in 2026?
Based on GuruFocus' analysis, HELLA GmbH KGaA stock appears to be undervalued.
The current stock price of CHF65.70 is trading 10.9% below its estimated GF Value™ of CHF73.73.
GuruFocus considers HELLA GmbH KGaA to be Modestly Undervalued.
Key valuation signals for XSWX:HLE:
Return-on-Tangible-Equity: 5.62% (63% below median its 10-year median of 15.19)
GF Value™: CHF73.73 vs. price of CHF65.70 (10.9% below fair value)
Industry Position: 25% below the Vehicles & Parts median (#823 of 1285)
No single metric tells the full story. See the XSWX:HLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HELLA GmbH & Co KGaA is a manufacturer of lighting and electronic components and systems for the automotive industry. The company also produces complete vehicle modules, air-conditioning systems, and vehicle electrical systems in its joint-venture companies, as well as products for specialist vehicles. Further, Hella operates a trade organisation for automotive parts, accessories, diagnosis, and services in Europe. The company is controlled through a pooled family majority shareholding in the group. The company has three reportable segments, which are Lighting, Electronics, and Lifecycle Solutions. The company generates the majority of its revenue from the Lighting segment.
74GF Score
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