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Zehnder Group AGXSWX:ZEHN -0.63%78 Return-on-Tangible-Equity is 20.00% as of Dec. 2025, which is 67% above its 10-year median of 11.99. GuruFocus rates XSWX:ZEHN with a GF Score™ of 78/100 and a GF Value™ of CHF58.24 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,712 Construction companies, Zehnder Group AG ranks better than 76.46% 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. Zehnder Group AG's annualized net income for the quarter that ended in Dec. 2025 was CHF43.5 Mil. Zehnder Group AG's average shareholder tangible equity for the quarter that ended in Dec. 2025 was CHF217.4 Mil. Therefore, Zehnder Group AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 20.00%.
The historical rank and industry rank for Zehnder Group AG's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:ZEHN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.62 Med: 11.99 Max: 20.42
Current: 20.42
During the past 13 years, Zehnder Group AG's highest Return-on-Tangible-Equity was 20.42%. The lowest was 0.62%. And the median was 11.99%.
XSWX:ZEHN's Return-on-Tangible-Equity is ranked better than 76.46% of 1712
companies
in the Construction industry
Industry Median: 8.21
vs XSWX:ZEHN: 20.42
Zehnder Group AG (XSWX:ZEHN) 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.
Zehnder Group AG Return-on-Tangible-Equity Related Terms
Zehnder Group AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zehnder 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:ZEHN vs TT, JCI, CARR: Return-on-Tangible-Equity Comparison
For the Building Products & Equipment subindustry, Zehnder 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.
Zehnder Group AG Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Zehnder Group AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zehnder 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 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 20.00% mean?
Zehnder Group AG (XSWX:ZEHN) has a Return-on-Tangible-Equity of 20.00% 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 Zehnder Group AG and its competitors. This is 67% above median its historical median of 11.99. Over the past decade, Zehnder Group AG's Return-on-Tangible-Equity has ranged from 0.62 to 20.42. According to the industry distribution chart, Zehnder Group AG ranks #403 out of 1712 companies in the Construction industry, placing it in the top 23.5%.
Is Zehnder Group AG's Return-on-Tangible-Equity too high?
Zehnder Group AG's current Return-on-Tangible-Equity of 20.00% is 67% above median its 10-year median of 11.99. Over the past 10 years, this metric has ranged from a low of 0.62 to a high of 20.42. The Construction industry median Return-on-Tangible-Equity is 8.21. Zehnder Group AG's value of 20.00% is 143.6% above this industry median. Based on the distribution chart, Zehnder Group AG ranks #403 out of 1712 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Zehnder Group AG has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zehnder Group AG's Return-on-Tangible-Equity compare to TT and JCI?
According to the Construction industry distribution chart, Zehnder Group AG ranks #403 out of 1712 companies for Return-on-Tangible-Equity. This places Zehnder Group AG in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.21. Zehnder Group AG's value of 20.00% is 143.6% above this benchmark. Historically, Zehnder Group AG's own Return-on-Tangible-Equity has ranged from 0.62 to 20.42 over the past decade. While the company's 10-year median is 11.99 vs. the industry median of 8.21, Zehnder 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 a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.21, based on 1,712 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. Zehnder Group AG's current Return-on-Tangible-Equity of 20.00% is 143.6% 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 Zehnder Group AG and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zehnder Group AG's current Return-on-Tangible-Equity is 20.00%, which is 67% above median its own 10-year median of 11.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zehnder Group AG stock overvalued right now?
Based on GuruFocus' analysis, Zehnder Group AG (XSWX:ZEHN) is currently considered Fairly Valued. The stock's GF Value™ is CHF58.24, compared to a current price of CHF62.60 — trading 7.5% above its estimated fair value. The current Return-on-Tangible-Equity is 20.00%, which is 67% above median its 10-year median of 11.99 and 143.6% above the Construction industry median of 8.21. Zehnder Group AG's overall GF Score™ is 78/100 with 2 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 Zehnder Group AG (XSWX:ZEHN), the current Return-on-Tangible-Equity is 20.00% 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 Zehnder Group AG (XSWX:ZEHN) Overvalued in 2026?
Based on GuruFocus' analysis, Zehnder Group AG stock appears to be overvalued.
The current stock price of CHF62.60 is trading 7.5% above its estimated GF Value™ of CHF58.24.
GuruFocus considers Zehnder Group AG to be Fairly Valued.
Key valuation signals for XSWX:ZEHN:
Return-on-Tangible-Equity: 20.00% (67% above median its 10-year median of 11.99)
GF Value™: CHF58.24 vs. price of CHF62.60 (7.5% above fair value)
Industry Position: 143.6% above the Construction median (#403 of 1712)
No single metric tells the full story. See the XSWX:ZEHN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zehnder Group AG is an indoor climate system supplier. The products and services of the Group include heating, cooling, indoor ventilation, and air cleaning. The business activity of the company functions through Europe, China, and North America. The company has two segments, Ventilation and Radiators. The ventilation segment covers the three product lines for ventilation, heat exchangers, and clean air solutions, and generates maximum revenue. The radiator segment contains two product lines: radiators and climate ceilings. The company generates revenue from the EMEA (Europe, the Middle East, and Africa) Region.
78GF Score
Get the complete analysis for XSWX:ZEHN
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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