Rai Way SpALTS:0R40 +0.79%87 ROE % is 42.53% as of Mar. 2026, which is 12% above its 10-year median of 38.11. GuruFocus rates LTS:0R40 with a GF Score™ of 87/100 and a GF Value™ of €5.66 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,742 Construction companies, Rai Way SpA ranks better than 96.27% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Rai Way SpA's annualized net income for the quarter that ended in Mar. 2026 was €86.3 Mil. Rai Way SpA's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €202.9 Mil. Therefore, Rai Way SpA's annualized ROE % for the quarter that ended in Mar. 2026 was 42.53%.
The historical rank and industry rank for Rai Way SpA's ROE % or its related term are showing as below:
LTS:0R40'
s ROE % Range Over the Past 10 Years
Min: 26.07 Med: 38.11 Max: 47.54
Current: 46.38
During the past 13 years, Rai Way SpA's highest ROE % was 47.54%. The lowest was 26.07%. And the median was 38.11%.
LTS:0R40's ROE % is ranked better than 96.27% of 1742
companies
in the Construction industry
Industry Median: 6.69
vs LTS:0R40: 46.38
Rai Way SpA (LTS:0R40) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 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.
Rai Way SpA ROE % Related Terms
Rai Way SpA ROE % Historical Data
* Premium members only.
The historical data trend for Rai Way SpA'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 Engineering & Construction subindustry, Rai Way SpA'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.
Rai Way SpA ROE % vs Construction Industry
For the Construction industry and Industrials sector, Rai Way SpA's ROE % distribution charts can be found below:
* The bar in red indicates where Rai Way SpA'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Rai Way SpA (LTS:0R40) has a ROE % of 42.53% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rai Way SpA and its competitors. This is 12% above median its historical median of 38.11. Over the past decade, Rai Way SpA's ROE % has ranged from 26.07 to 47.54. According to the industry distribution chart, Rai Way SpA ranks #65 out of 1742 companies in the Construction industry, placing it in the top 3.7%.
Is Rai Way SpA's ROE % too high?
Rai Way SpA's current ROE % of 42.53% is 12% above median its 10-year median of 38.11. Over the past 10 years, this metric has ranged from a low of 26.07 to a high of 47.54. The Construction industry median ROE % is 6.69. Rai Way SpA's value of 42.53% is 535.7% above this industry median. Based on the distribution chart, Rai Way SpA ranks #65 out of 1742 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Rai Way SpA has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rai Way SpA's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Rai Way SpA ranks #65 out of 1742 companies for ROE %. This places Rai Way SpA in the top 4% of its industry — outperforming the majority of peers. The industry median ROE % is 6.69. Rai Way SpA's value of 42.53% is 535.7% above this benchmark. Historically, Rai Way SpA's own ROE % has ranged from 26.07 to 47.54 over the past decade. While the company's 10-year median is 38.11 vs. the industry median of 6.69, Rai Way SpA 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 ROE % for a Construction company?
The median ROE % among Construction companies is 6.69, based on 1,742 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. Rai Way SpA's current ROE % of 42.53% is 535.7% 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 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 Rai Way SpA and its competitors. For the Construction industry, the median ROE % is 6.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rai Way SpA's current ROE % is 42.53%, which is 12% above median its own 10-year median of 38.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rai Way SpA stock overvalued right now?
Based on GuruFocus' analysis, Rai Way SpA (LTS:0R40) is currently considered Modestly Undervalued. The stock's GF Value™ is €5.66, compared to a current price of €4.78 — trading 15.6% below its estimated fair value. The current ROE % is 42.53%, which is 12% above median its 10-year median of 38.11 and 535.7% above the Construction industry median of 6.69. Rai Way SpA's overall GF Score™ is 87/100 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 Rai Way SpA (LTS:0R40), the current ROE % is 42.53% 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 Rai Way SpA (LTS:0R40) Overvalued in 2026?
Based on GuruFocus' analysis, Rai Way SpA stock appears to be undervalued.
The current stock price of €4.78 is trading 15.6% below its estimated GF Value™ of €5.66.
GuruFocus considers Rai Way SpA to be Modestly Undervalued.
Key valuation signals for LTS:0R40:
ROE %: 42.53% (12% above median its 10-year median of 38.11)
GF Value™: €5.66 vs. price of €4.78 (15.6% below fair value)
Industry Position: 535.7% above the Construction median (#65 of 1742)
No single metric tells the full story. See the LTS:0R40 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rai Way SpA is an Italy-based company which operates activity of signal transmission and a broadcasting network of RAI group. The services provided by the company include broadcasting services, transmission services, tower Rental Services and network Services. The company serves its customer by providing implementation and management of the main broadcasting processes which include analog and digital, terrestrial and satellite, for audio, video and data signals, television signals through connecting network. The company allows its clients to have the availability of tower and civil infrastructures to install radio transmitters, planning, construction, installation, management of electronic and telecommunications networks. It provides services throughout Italy.
87GF Score
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