Tieto OyjLTS:0KG0 -0.68%68 ROA % is 10.45% as of Mar. 2026, which is 101% above its 10-year median of 5.19. GuruFocus rates LTS:0KG0 with a GF Score™ of 68/100 and a GF Value™ of €14.53 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,883 Software companies, Tieto Oyj ranks worse than 34686.06% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Tieto Oyj's annualizedNet Income for the quarter that ended in Mar. 2026 was €240 Mil.
Tieto Oyj's average Total Assets over the quarter that ended in Mar. 2026 was €2,296 Mil. Therefore, Tieto Oyj's annualized ROA % for the quarter that ended in Mar. 2026 was 10.45%.
The historical rank and industry rank for Tieto Oyj's ROA % or its related term are showing as below:
During the past 13 years, Tieto Oyj's highest ROA % was 10.50%. The lowest was -5.30%. And the median was 5.19%.
LTS:0KG0's ROA % is not ranked *
in the Software industry.
Industry Median: 1.65 * Ranked among companies with meaningful ROA % only.
Tieto Oyj (LTS:0KG0) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Tieto Oyj ROA % Related Terms
Tieto Oyj ROA % Historical Data
* Premium members only.
The historical data trend for Tieto Oyj's ROA % 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.
For the Information Technology Services subindustry, Tieto Oyj's ROA %, along with its competitors' market caps and ROA % 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.
Tieto Oyj ROA % vs Software Industry
For the Software industry and Technology sector, Tieto Oyj's ROA % distribution charts can be found below:
* The bar in red indicates where Tieto Oyj's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Tieto Oyj (LTS:0KG0) has a ROA % of 10.45% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tieto Oyj and its competitors. This is 101% above median its historical median of 5.19. According to the industry distribution chart, Tieto Oyj ranks #999999 out of 2883 companies in the Software industry.
Is Tieto Oyj's ROA % too high?
Tieto Oyj's current ROA % of 10.45% is 101% above median its 10-year median of 5.19. The Software industry median ROA % is 1.65. Tieto Oyj's value of 10.45% is 533.3% above this industry median. Based on the distribution chart, Tieto Oyj ranks #999999 out of 2883 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Tieto Oyj has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tieto Oyj's ROA % compare to IBM and ACN?
According to the Software industry distribution chart, Tieto Oyj ranks #999999 out of 2883 companies for ROA %. This places Tieto Oyj in the lower half of its industry. The industry median ROA % is 1.65. Tieto Oyj's value of 10.45% is 533.3% above this benchmark. While the company's 10-year median is 5.19 vs. the industry median of 1.65, Tieto Oyj 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 ROA % for a Software company?
The median ROA % among Software companies is 1.65, based on 2,883 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tieto Oyj's current ROA % of 10.45% is 533.3% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tieto Oyj and its competitors. For the Software industry, the median ROA % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tieto Oyj's current ROA % is 10.45%, which is 101% above median its own 10-year median of 5.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tieto Oyj stock overvalued right now?
Based on GuruFocus' analysis, Tieto Oyj (LTS:0KG0) is currently considered Modestly Overvalued. The stock's GF Value™ is €14.53, compared to a current price of €17.64 — trading 21.4% above its estimated fair value. The current ROA % is 10.45%, which is 101% above median its 10-year median of 5.19 and 533.3% above the Software industry median of 1.65. Tieto Oyj's overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Tieto Oyj (LTS:0KG0), the current ROA % is 10.45% 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 Tieto Oyj (LTS:0KG0) Overvalued in 2026?
Based on GuruFocus' analysis, Tieto Oyj stock appears to be overvalued.
The current stock price of €17.64 is trading 21.4% above its estimated GF Value™ of €14.53.
GuruFocus considers Tieto Oyj to be Modestly Overvalued.
Key valuation signals for LTS:0KG0:
ROA %: 10.45% (101% above median its 10-year median of 5.19)
GF Value™: €14.53 vs. price of €17.64 (21.4% above fair value)
Industry Position: 533.3% above the Software median (#999999 of 2883)
No single metric tells the full story. See the LTS:0KG0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tieto Oyj is a software and technology consulting company. The company provides software and digital engineering services to customers across multiple industries. Its operations include specialized software businesses such as Tieto Caretech, Tieto Banktech, and Tieto Indtech, as well as a technology consulting business. The company offers services in areas including software development, design, cloud, and artificial intelligence.
68GF Score
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