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Addnode Group ABFRA:AR7 +0.59%75 ROE % is 2.74% as of Jun. 2026, which is 79% below its 10-year median of 13.32. GuruFocus rates FRA:AR7 with a GF Score™ of 75/100 and a GF Value™ of €6.09 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,686 Software companies, Addnode Group AB ranks better than 66.98% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Addnode Group AB ROE % Related Terms
Addnode Group AB ROE % Historical Data
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The historical data trend for Addnode Group AB's ROE % 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, Addnode Group AB's ROE %, along with its competitors' market caps and ROE % 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.
Addnode Group AB ROE % vs Software Industry
For the Software industry and Technology sector, Addnode Group AB's ROE % distribution charts can be found below:
* The bar in red indicates where Addnode Group AB's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Addnode Group AB (FRA:AR7) has a ROE % of 2.74% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Addnode Group AB and its competitors. This is 79% below median its historical median of 13.32. Over the past decade, Addnode Group AB's ROE % has ranged from 8.75 to 20.66. According to the industry distribution chart, Addnode Group AB ranks #887 out of 2686 companies in the Software industry, placing it in the top 33%.
Is Addnode Group AB's ROE % too high?
Addnode Group AB's current ROE % of 2.74% is 79% below median its 10-year median of 13.32. Over the past 10 years, this metric has ranged from a low of 8.75 to a high of 20.66. The Software industry median ROE % is 4.79. Addnode Group AB's value of 2.74% is 42.8% below this industry median. Based on the distribution chart, Addnode Group AB ranks #887 out of 2686 companies in the Software industry, which is above the industry midpoint. Overall, Addnode Group AB has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Addnode Group AB's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Addnode Group AB ranks #887 out of 2686 companies for ROE %. This puts Addnode Group AB in the upper half of its industry. The industry median ROE % is 4.79. Addnode Group AB's value of 2.74% is 42.8% below this benchmark. Historically, Addnode Group AB's own ROE % has ranged from 8.75 to 20.66 over the past decade. While the company's 10-year median is 13.32 vs. the industry median of 4.79, Addnode Group AB 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 ROE % for a Software company?
The median ROE % among Software companies is 4.79, based on 2,686 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Addnode Group AB's current ROE % of 2.74% is 42.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Addnode Group AB and its competitors. For the Software industry, the median ROE % is 4.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Addnode Group AB's current ROE % is 2.74%, which is 79% below median its own 10-year median of 13.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Addnode Group AB stock overvalued right now?
Based on GuruFocus' analysis, Addnode Group AB (FRA:AR7) is currently considered Possible Value Trap. The stock's GF Value™ is €6.09, compared to a current price of €3.42 — trading 43.9% below its estimated fair value. The current ROE % is 2.74%, which is 79% below median its 10-year median of 13.32 and 42.8% below the Software industry median of 4.79. Addnode Group AB's overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Addnode Group AB (FRA:AR7), the current ROE % is 2.74% 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 Addnode Group AB (FRA:AR7) Overvalued in 2026?
Based on GuruFocus' analysis, Addnode Group AB stock appears to be undervalued.
The current stock price of €3.42 is trading 43.9% below its estimated GF Value™ of €6.09.
GuruFocus considers Addnode Group AB to be Possible Value Trap.
Key valuation signals for FRA:AR7:
ROE %: 2.74% (79% below median its 10-year median of 13.32)
GF Value™: €6.09 vs. price of €3.42 (43.9% below fair value)
Industry Position: 42.8% below the Software median (#887 of 2686)
No single metric tells the full story. See the FRA:AR7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Addnode Group AB acquires, operates, and develops businesses that provide digital technologies and services in Sweden. Its operations are divided into three business divisions: The Design Management business, the Product Lifecycle Management (PLM) and the Process Management business. The majority of revenue is derived from the Design Management business, which offers digital solutions and services for design, BIM, product data and facility management for architects and engineers in the manufacturing and construction industries, in both private and public sector. Geographically, the company generates the maximum revenue from Sweden and the rest from the USA, UK, Germany, Norway, etc.
75GF Score
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