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Observit ABOSTO:OBSE +4.76%33 ROE % is 2.98% as of Mar. 2026, which is 11% below its 10-year median of 3.34. GuruFocus rates OSTO:OBSE with a GF Score™ of 33/100 and a GF Value™ of kr0.40 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,688 Software companies, Observit AB ranks worse than 56.36% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Observit AB's annualized net income for the quarter that ended in Mar. 2026 was kr1.34 Mil. Observit AB's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was kr44.88 Mil. Therefore, Observit AB's annualized ROE % for the quarter that ended in Mar. 2026 was 2.98%.
The historical rank and industry rank for Observit AB's ROE % or its related term are showing as below:
OSTO:OBSE'
s ROE % Range Over the Past 10 Years
Min: -5.32 Med: 3.34 Max: 2428.47
Current: 2.44
During the past 5 years, Observit AB's highest ROE % was 2,428.47%. The lowest was -5.32%. And the median was 3.34%.
OSTO:OBSE's ROE % is ranked worse than 56.36% of 2688
companies
in the Software industry
Industry Median: 4.85
vs OSTO:OBSE: 2.44
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.
Observit AB ROE % Related Terms
Observit AB ROE % Historical Data
* Premium members only.
The historical data trend for Observit 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, Observit 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.
Observit AB ROE % vs Software Industry
For the Software industry and Technology sector, Observit AB's ROE % distribution charts can be found below:
* The bar in red indicates where Observit 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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Observit AB (OSTO:OBSE) has a ROE % of 2.98% 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 Observit AB and its competitors. This is 11% below median its historical median of 3.34. According to the industry distribution chart, Observit AB ranks #1515 out of 2688 companies in the Software industry, placing it in the top 56.4%.
Is Observit AB's ROE % too high?
Observit AB's current ROE % of 2.98% is 11% below median its 10-year median of 3.34. The Software industry median ROE % is 4.85. Observit AB's value of 2.98% is 38.6% below this industry median. Based on the distribution chart, Observit AB ranks #1515 out of 2688 companies in the Software industry, which is below the industry midpoint. Overall, Observit AB has a GF Score™ of 33/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Observit AB's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Observit AB ranks #1515 out of 2688 companies for ROE %. This places Observit AB in the lower half of its industry. The industry median ROE % is 4.85. Observit AB's value of 2.98% is 38.6% below this benchmark. While the company's 10-year median is 3.34 vs. the industry median of 4.85, Observit 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 4.85, based on 2,688 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. Observit AB's current ROE % of 2.98% is 38.6% 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 Observit AB and its competitors. For the Software industry, the median ROE % is 4.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Observit AB's current ROE % is 2.98%, which is 11% below median its own 10-year median of 3.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Observit AB stock overvalued right now?
Based on GuruFocus' analysis, Observit AB (OSTO:OBSE) is currently considered Significantly Overvalued. The stock's GF Value™ is kr0.40, compared to a current price of kr0.66 — trading 65% above its estimated fair value. The current ROE % is 2.98%, which is 11% below median its 10-year median of 3.34 and 38.6% below the Software industry median of 4.85. Observit AB's overall GF Score™ is 33/100 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 Observit AB (OSTO:OBSE), the current ROE % is 2.98% 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 Observit AB (OSTO:OBSE) Overvalued in 2026?
Based on GuruFocus' analysis, Observit AB stock appears to be overvalued.
The current stock price of kr0.66 is trading 65% above its estimated GF Value™ of kr0.40.
GuruFocus considers Observit AB to be Significantly Overvalued.
Key valuation signals for OSTO:OBSE:
ROE %: 2.98% (11% below median its 10-year median of 3.34)
GF Value™: kr0.40 vs. price of kr0.66 (65% above fair value)
Industry Position: 38.6% below the Software median (#1515 of 2688)
No single metric tells the full story. See the OSTO:OBSE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Observit AB is the market leader in the Nordics when it comes to mobile video surveillance in public transport. The company provides software as a cloud service, and a Software as a Service (SaaS) solution, and currently has approximately 38,000 licenses (one license per security camera) connected globally. The customer base includes bus operators such as Nobina, Keolis, and Arriva and other transport-heavy customers such as Elis. Observit wants to become the brand for mobile video solutions in the transport sector.
33GF Score
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