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ALFABS AUSTRALIAASX:AAL 16 Return-on-Tangible-Asset is 1.97% as of Dec. 2025, which is 70% below its 10-year median of 6.47. GuruFocus rates ASX:AAL with a GF Score™ of 16/100. The stock has 5 warning signs investors should review. Among 571 Conglomerates companies, ALFABS AUSTRALIA ranks better than 76.36% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. ALFABS AUSTRALIA's annualizedNet Income for the quarter that ended in Dec. 2025 was A$2.6 Mil. ALFABS AUSTRALIA's average total tangible assets for the quarter that ended in Dec. 2025 was A$134.0 Mil. Therefore, ALFABS AUSTRALIA's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 1.97%.
The historical rank and industry rank for ALFABS AUSTRALIA's Return-on-Tangible-Asset or its related term are showing as below:
ASX:AAL'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 3.08 Med: 6.47 Max: 9.85
Current: 6.07
During the past 4 years, ALFABS AUSTRALIA's highest Return-on-Tangible-Asset was 9.85%. The lowest was 3.08%. And the median was 6.47%.
ASX:AAL's Return-on-Tangible-Asset is ranked better than 76.36% of 571
companies
in the Conglomerates industry
Industry Median: 2.69
vs ASX:AAL: 6.07
ALFABS AUSTRALIA (ASX:AAL) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
ALFABS AUSTRALIA Return-on-Tangible-Asset Related Terms
ALFABS AUSTRALIA Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for ALFABS AUSTRALIA's Return-on-Tangible-Asset 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.
ASX:AAL vs HON, MMM: Return-on-Tangible-Asset Comparison
For the Conglomerates subindustry, ALFABS AUSTRALIA's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
ALFABS AUSTRALIA Return-on-Tangible-Asset vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, ALFABS AUSTRALIA's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where ALFABS AUSTRALIA's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 1.97% mean?
ALFABS AUSTRALIA (ASX:AAL) has a Return-on-Tangible-Asset of 1.97% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on ALFABS AUSTRALIA and its competitors. This is 70% below median its historical median of 6.47. Over the past decade, ALFABS AUSTRALIA's Return-on-Tangible-Asset has ranged from 3.08 to 9.85. According to the industry distribution chart, ALFABS AUSTRALIA ranks #135 out of 571 companies in the Conglomerates industry, placing it in the top 23.6%.
Is ALFABS AUSTRALIA's Return-on-Tangible-Asset too high?
ALFABS AUSTRALIA's current Return-on-Tangible-Asset of 1.97% is 70% below median its 10-year median of 6.47. Over the past 10 years, this metric has ranged from a low of 3.08 to a high of 9.85. The Conglomerates industry median Return-on-Tangible-Asset is 2.69. ALFABS AUSTRALIA's value of 1.97% is 26.8% below this industry median. Based on the distribution chart, ALFABS AUSTRALIA ranks #135 out of 571 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, ALFABS AUSTRALIA has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does ALFABS AUSTRALIA's Return-on-Tangible-Asset compare to HON and MMM?
According to the Conglomerates industry distribution chart, ALFABS AUSTRALIA ranks #135 out of 571 companies for Return-on-Tangible-Asset. This places ALFABS AUSTRALIA in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.69. ALFABS AUSTRALIA's value of 1.97% is 26.8% below this benchmark. Historically, ALFABS AUSTRALIA's own Return-on-Tangible-Asset has ranged from 3.08 to 9.85 over the past decade. While the company's 10-year median is 6.47 vs. the industry median of 2.69, ALFABS AUSTRALIA 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 Return-on-Tangible-Asset for a Conglomerates company?
The median Return-on-Tangible-Asset among Conglomerates companies is 2.69, based on 571 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ALFABS AUSTRALIA's current Return-on-Tangible-Asset of 1.97% is 26.8% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on ALFABS AUSTRALIA and its competitors. For the Conglomerates industry, the median Return-on-Tangible-Asset is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALFABS AUSTRALIA's current Return-on-Tangible-Asset is 1.97%, which is 70% below median its own 10-year median of 6.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALFABS AUSTRALIA stock overvalued right now?
ALFABS AUSTRALIA (ASX:AAL) has a current Return-on-Tangible-Asset of 1.97%. The current Return-on-Tangible-Asset is 1.97%, which is 70% below median its 10-year median of 6.47 and 26.8% below the Conglomerates industry median of 2.69. ALFABS AUSTRALIA's overall GF Score™ is 16/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For ALFABS AUSTRALIA (ASX:AAL), the current Return-on-Tangible-Asset is 1.97% as of Dec. 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.
ALFABS AUSTRALIA Ltd is a company that provides a design-to-delivery solution for its clients across heavy steel fabrication, construction, and maintenance services, mining equipment, protective coatings, and transport. Its reportable segments are Mining, Engineering, and Other. The Mining segment is engaged in the manufacture, repair, overhaul, servicing, and hire of underground mining and ancillary equipment, together with sales of mining-related consumables and spare parts. The Engineering segment, which derives maximum revenue for the company, is involved in heavy steel fabrication, site installation works, and site-based maintenance; and the Other segment represents head office and ancillary businesses, including protective coatings and transport.
16GF Score
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