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Kapsch TrafficCom AGLTS:0GTO 62 ROE % is 4.60% as of Sep. 2025, which is 90% above its 10-year median of 2.42. GuruFocus rates LTS:0GTO with a GF Score™ of 62/100 and a GF Value™ of €6.49 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,744 Construction companies, Kapsch TrafficCom AG ranks worse than 52.01% on this metric.
The historical rank and industry rank for Kapsch TrafficCom AG's ROE % or its related term are showing as below:
LTS:0GTO'
s ROE % Range Over the Past 10 Years
Min: -73.64 Med: 2.42 Max: 31.67
Current: 6.29
During the past 13 years, Kapsch TrafficCom AG's highest ROE % was 31.67%. The lowest was -73.64%. And the median was 2.42%.
LTS:0GTO's ROE % is ranked worse than 52.01% of 1744
companies
in the Construction industry
Industry Median: 6.705
vs LTS:0GTO: 6.29
Kapsch TrafficCom AG (LTS:0GTO) ROE % Explanation
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 two times the semi-annual (Sep. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 2025) 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.
* 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 Infrastructure Operations subindustry, Kapsch TrafficCom AG'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.
Kapsch TrafficCom AG ROE % vs Construction Industry
For the Construction industry and Industrials sector, Kapsch TrafficCom AG's ROE % distribution charts can be found below:
* The bar in red indicates where Kapsch TrafficCom AG'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 two times the semi-annual (Sep. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Kapsch TrafficCom AG (LTS:0GTO) has a ROE % of 4.60% as of Sep. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Kapsch TrafficCom AG and its competitors. This is 90% above median its historical median of 2.42. According to the industry distribution chart, Kapsch TrafficCom AG ranks #907 out of 1744 companies in the Construction industry, placing it in the top 52%.
Is Kapsch TrafficCom AG's ROE % too high?
Kapsch TrafficCom AG's current ROE % of 4.60% is 90% above median its 10-year median of 2.42. The Construction industry median ROE % is 6.71. Kapsch TrafficCom AG's value of 4.60% is 31.4% below this industry median. Based on the distribution chart, Kapsch TrafficCom AG ranks #907 out of 1744 companies in the Construction industry, which is below the industry midpoint. Overall, Kapsch TrafficCom AG has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kapsch TrafficCom AG's ROE % compare to competitors?
According to the Construction industry distribution chart, Kapsch TrafficCom AG ranks #907 out of 1744 companies for ROE %. This places Kapsch TrafficCom AG in the lower half of its industry. The industry median ROE % is 6.71. Kapsch TrafficCom AG's value of 4.60% is 31.4% below this benchmark. While the company's 10-year median is 2.42 vs. the industry median of 6.71, Kapsch TrafficCom AG 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 Construction company?
The median ROE % among Construction companies is 6.71, based on 1,744 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. Kapsch TrafficCom AG's current ROE % of 4.60% is 31.4% 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 Kapsch TrafficCom AG and its competitors. For the Construction industry, the median ROE % is 6.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kapsch TrafficCom AG's current ROE % is 4.60%, which is 90% above median its own 10-year median of 2.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kapsch TrafficCom AG stock overvalued right now?
Based on GuruFocus' analysis, Kapsch TrafficCom AG (LTS:0GTO) is currently considered Modestly Undervalued. The stock's GF Value™ is €6.49, compared to a current price of €5.16 — trading 20.5% below its estimated fair value. The current ROE % is 4.60%, which is 90% above median its 10-year median of 2.42 and 31.4% below the Construction industry median of 6.71. Kapsch TrafficCom AG's overall GF Score™ is 62/100 with 2 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 Kapsch TrafficCom AG (LTS:0GTO), the current ROE % is 4.60% as of Sep. 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 Kapsch TrafficCom AG (LTS:0GTO) Overvalued in 2026?
Based on GuruFocus' analysis, Kapsch TrafficCom AG stock appears to be undervalued.
The current stock price of €5.16 is trading 20.5% below its estimated GF Value™ of €6.49.
GuruFocus considers Kapsch TrafficCom AG to be Modestly Undervalued.
Key valuation signals for LTS:0GTO:
ROE %: 4.60% (90% above median its 10-year median of 2.42)
GF Value™: €6.49 vs. price of €5.16 (20.5% below fair value)
Industry Position: 31.4% below the Construction median (#907 of 1744)
No single metric tells the full story. See the LTS:0GTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kapsch TrafficCom AG is an Austria-based company which provides intelligent transportation systems (ITS). The company's operating segment includes Tolling and Traffic Management. It generates maximum revenue from the Tolling segment. Tolling segment comprises activities relating to the implementation and the technical and commercial operation of toll collection systems. Traffic Management segment primarily comprises activities relating to the implementation and operation of systems and solutions for controlling traffic and mobility behavior, as well as the relating components business. Geographically, it derives a majority of revenue from Europe, Middle East, Africa and also has presence in Austria, Americas, and Asia-Pacific.
62GF Score
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