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Matrix ITXTAE:MTRX +4.92%92 Return-on-Tangible-Equity is 214.78% as of Jun. 2026, which is 61% below its 10-year median of 550.06. GuruFocus rates XTAE:MTRX with a GF Score™ of 92/100 and a GF Value™ of ₪86.13 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,483 Software companies, Matrix IT ranks better than 90.33% 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. Matrix IT's annualized net income for the quarter that ended in Jun. 2026 was ₪490 Mil. Matrix IT's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₪228 Mil. Therefore, Matrix IT's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 214.78%.
The historical rank and industry rank for Matrix IT's Return-on-Tangible-Equity or its related term are showing as below:
XTAE:MTRX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 267.55 Med: 550.06 Max: 1395.15
Current: 358.17
During the past 13 years, Matrix IT's highest Return-on-Tangible-Equity was 1,395.15%. The lowest was 267.55%. And the median was 550.06%.
XTAE:MTRX's Return-on-Tangible-Equity is ranked better than 90.33% of 2483
companies
in the Software industry
Industry Median: 9.9
vs XTAE:MTRX: 358.17
Matrix IT (XTAE:MTRX) 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.
Matrix IT Return-on-Tangible-Equity Related Terms
Matrix IT Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Matrix IT'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.
XTAE:MTRX vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Matrix IT'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.
Matrix IT Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Matrix IT's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Matrix IT'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 214.78% mean?
Matrix IT (XTAE:MTRX) has a Return-on-Tangible-Equity of 214.78% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Matrix IT and its competitors. This is 61% below median its historical median of 550.06. Over the past decade, Matrix IT's Return-on-Tangible-Equity has ranged from 267.55 to 1,395.15. According to the industry distribution chart, Matrix IT ranks #240 out of 2483 companies in the Software industry, placing it in the top 9.7%.
Is Matrix IT's Return-on-Tangible-Equity too high?
Matrix IT's current Return-on-Tangible-Equity of 214.78% is 61% below median its 10-year median of 550.06. Over the past 10 years, this metric has ranged from a low of 267.55 to a high of 1,395.15. The Software industry median Return-on-Tangible-Equity is 9.90. Matrix IT's value of 214.78% is 2069.5% above this industry median. Based on the distribution chart, Matrix IT ranks #240 out of 2483 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Matrix IT has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Matrix IT's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Matrix IT ranks #240 out of 2483 companies for Return-on-Tangible-Equity. This places Matrix IT in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.90. Matrix IT's value of 214.78% is 2069.5% above this benchmark. Historically, Matrix IT's own Return-on-Tangible-Equity has ranged from 267.55 to 1,395.15 over the past decade. While the company's 10-year median is 550.06 vs. the industry median of 9.90, Matrix IT 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 9.90, based on 2,483 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. Matrix IT's current Return-on-Tangible-Equity of 214.78% is 2069.5% 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 Matrix IT and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Matrix IT's current Return-on-Tangible-Equity is 214.78%, which is 61% below median its own 10-year median of 550.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Matrix IT stock overvalued right now?
Based on GuruFocus' analysis, Matrix IT (XTAE:MTRX) is currently considered Modestly Overvalued. The stock's GF Value™ is ₪86.13, compared to a current price of ₪99.92 — trading 16% above its estimated fair value. The current Return-on-Tangible-Equity is 214.78%, which is 61% below median its 10-year median of 550.06 and 2069.5% above the Software industry median of 9.90. Matrix IT's overall GF Score™ is 92/100 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 Matrix IT (XTAE:MTRX), the current Return-on-Tangible-Equity is 214.78% as of Jun. 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 Matrix IT (XTAE:MTRX) Overvalued in 2026?
Based on GuruFocus' analysis, Matrix IT stock appears to be overvalued.
The current stock price of ₪99.92 is trading 16% above its estimated GF Value™ of ₪86.13.
GuruFocus considers Matrix IT to be Modestly Overvalued.
Key valuation signals for XTAE:MTRX:
Return-on-Tangible-Equity: 214.78% (61% below median its 10-year median of 550.06)
GF Value™: ₪86.13 vs. price of ₪99.92 (16% above fair value)
Industry Position: 2069.5% above the Software median (#240 of 2483)
No single metric tells the full story. See the XTAE:MTRX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Matrix IT Ltd is an information technology company. It manages segments such as software solutions and value added services in Israel, software product marketing and support services, computer infrastructure and integration solutions, training and implementation, and software solutions and services in USA. Majority of its revenue is derived from its software solutions and services segment. The company's revenue is generated from its Israel operations.
92GF Score
Get the complete analysis for XTAE:MTRX
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