TXT e-solutions SpAMIL:TXT +0.14%94 ROE % is 12.47% as of Mar. 2026, which is 4% above its 10-year median of 11.97. GuruFocus rates MIL:TXT with a GF Score™ of 94/100 and a GF Value™ of €38.91 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,681 Software companies, TXT e-solutions SpA ranks better than 72.96% on this metric.
The historical rank and industry rank for TXT e-solutions SpA's ROE % or its related term are showing as below:
MIL:TXT'
s ROE % Range Over the Past 10 Years
Min: 0.37 Med: 11.97 Max: 102.19
Current: 14.47
During the past 13 years, TXT e-solutions SpA's highest ROE % was 102.19%. The lowest was 0.37%. And the median was 11.97%.
MIL:TXT's ROE % is ranked better than 72.96% of 2681
companies
in the Software industry
Industry Median: 4.71
vs MIL:TXT: 14.47
TXT e-solutions SpA (MIL:TXT) 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.
TXT e-solutions SpA ROE % Related Terms
TXT e-solutions SpA ROE % Historical Data
* Premium members only.
The historical data trend for TXT e-solutions 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 Software - Application subindustry, TXT e-solutions 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.
TXT e-solutions SpA ROE % vs Software Industry
For the Software industry and Technology sector, TXT e-solutions SpA's ROE % distribution charts can be found below:
* The bar in red indicates where TXT e-solutions 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.
TXT e-solutions SpA (MIL:TXT) has a ROE % of 12.47% 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 TXT e-solutions SpA and its competitors. This is near median its historical median of 11.97. Over the past decade, TXT e-solutions SpA's ROE % has ranged from 0.37 to 102.19. According to the industry distribution chart, TXT e-solutions SpA ranks #725 out of 2681 companies in the Software industry, placing it in the top 27%.
Is TXT e-solutions SpA's ROE % too high?
TXT e-solutions SpA's current ROE % of 12.47% is near median its 10-year median of 11.97. Over the past 10 years, this metric has ranged from a low of 0.37 to a high of 102.19. The Software industry median ROE % is 4.71. TXT e-solutions SpA's value of 12.47% is 164.8% above this industry median. Based on the distribution chart, TXT e-solutions SpA ranks #725 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, TXT e-solutions SpA has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does TXT e-solutions SpA's ROE % compare to CRM and SHOP?
According to the Software industry distribution chart, TXT e-solutions SpA ranks #725 out of 2681 companies for ROE %. This puts TXT e-solutions SpA in the upper half of its industry. The industry median ROE % is 4.71. TXT e-solutions SpA's value of 12.47% is 164.8% above this benchmark. Historically, TXT e-solutions SpA's own ROE % has ranged from 0.37 to 102.19 over the past decade. While the company's 10-year median is 11.97 vs. the industry median of 4.71, TXT e-solutions 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 Software company?
The median ROE % among Software companies is 4.71, based on 2,681 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. TXT e-solutions SpA's current ROE % of 12.47% is 164.8% 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 TXT e-solutions SpA and its competitors. For the Software industry, the median ROE % is 4.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TXT e-solutions SpA's current ROE % is 12.47%, which is near median its own 10-year median of 11.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TXT e-solutions SpA stock overvalued right now?
Based on GuruFocus' analysis, TXT e-solutions SpA (MIL:TXT) is currently considered Fairly Valued. The stock's GF Value™ is €38.91, compared to a current price of €36.05 — trading 7.4% below its estimated fair value. The current ROE % is 12.47%, which is near median its 10-year median of 11.97 and 164.8% above the Software industry median of 4.71. TXT e-solutions SpA's overall GF Score™ is 94/100 with 5 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 TXT e-solutions SpA (MIL:TXT), the current ROE % is 12.47% 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 TXT e-solutions SpA (MIL:TXT) Overvalued in 2026?
Based on GuruFocus' analysis, TXT e-solutions SpA stock appears to be undervalued.
The current stock price of €36.05 is trading 7.4% below its estimated GF Value™ of €38.91.
GuruFocus considers TXT e-solutions SpA to be Fairly Valued.
Key valuation signals for MIL:TXT:
ROE %: 12.47% (near median its 10-year median of 11.97)
GF Value™: €38.91 vs. price of €36.05 (7.4% below fair value)
Industry Position: 164.8% above the Software median (#725 of 2681)
No single metric tells the full story. See the MIL:TXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TXT e-solutions SpA is an Italy-based company. The company provides three operating segments: Smart Solutions, Software Engineering, and Digital Advisory. The smart solution segment includes the activities of TXT Risk Solutions, Assiopay, and Working Capital Solution. D.M. Management and Consulting, etc. Software Engineering includes e-tech Srl, Ennova Group, TXT e-swiss, and Fascode S.P.A. Digital Advisory includes companies such as HSPI, PGMD Consulting, Tlogos, etc. The majority of revenue is from Software Engineering. Geographically, it has a presence in Italy, Germany, the United Kingdom, France, Switzerland, and the USA.
94GF Score
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