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AdairsASX:ADH -0.70%79 Return-on-Tangible-Asset is 6.99% as of Dec. 2025, which is 68% below its 10-year median of 21.61. GuruFocus rates ASX:ADH with a GF Score™ of 79/100 and a GF Value™ of A$2.12 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,134 Retail - Cyclical companies, Adairs ranks better than 65.43% 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. Adairs's annualizedNet Income for the quarter that ended in Dec. 2025 was A$25.7 Mil. Adairs's average total tangible assets for the quarter that ended in Dec. 2025 was A$367.3 Mil. Therefore, Adairs's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 6.99%.
The historical rank and industry rank for Adairs's Return-on-Tangible-Asset or its related term are showing as below:
ASX:ADH'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 5.3 Med: 21.61 Max: 42.91
Current: 5.3
During the past 11 years, Adairs's highest Return-on-Tangible-Asset was 42.91%. The lowest was 5.30%. And the median was 21.61%.
ASX:ADH's Return-on-Tangible-Asset is ranked better than 65.43% of 1134
companies
in the Retail - Cyclical industry
Industry Median: 2.92
vs ASX:ADH: 5.30
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.
Adairs Return-on-Tangible-Asset Related Terms
Adairs Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Adairs'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:ADH vs CASY, WSM, DKS: Return-on-Tangible-Asset Comparison
For the Specialty Retail subindustry, Adairs'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.
Adairs Return-on-Tangible-Asset vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Adairs's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Adairs'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 6.99% mean?
Adairs (ASX:ADH) has a Return-on-Tangible-Asset of 6.99% 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 Adairs and its competitors. This is 68% below median its historical median of 21.61. Over the past decade, Adairs' Return-on-Tangible-Asset has ranged from 5.30 to 42.91. According to the industry distribution chart, Adairs ranks #392 out of 1134 companies in the Retail - Cyclical industry, placing it in the top 34.6%.
Is Adairs' Return-on-Tangible-Asset too high?
Adairs' current Return-on-Tangible-Asset of 6.99% is 68% below median its 10-year median of 21.61. Over the past 10 years, this metric has ranged from a low of 5.30 to a high of 42.91. The Retail - Cyclical industry median Return-on-Tangible-Asset is 2.92. Adairs' value of 6.99% is 139.4% above this industry median. Based on the distribution chart, Adairs ranks #392 out of 1134 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Adairs has a GF Score™ of 79/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Adairs' Return-on-Tangible-Asset compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Adairs ranks #392 out of 1134 companies for Return-on-Tangible-Asset. This puts Adairs in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.92. Adairs' value of 6.99% is 139.4% above this benchmark. Historically, Adairs' own Return-on-Tangible-Asset has ranged from 5.30 to 42.91 over the past decade. While the company's 10-year median is 21.61 vs. the industry median of 2.92, Adairs 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 Return-on-Tangible-Asset for a Retail - Cyclical company?
The median Return-on-Tangible-Asset among Retail - Cyclical companies is 2.92, based on 1,134 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. Adairs's current Return-on-Tangible-Asset of 6.99% is 139.4% 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 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 Adairs and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Asset is 2.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adairs's current Return-on-Tangible-Asset is 6.99%, which is 68% below median its own 10-year median of 21.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adairs stock overvalued right now?
Based on GuruFocus' analysis, Adairs (ASX:ADH) is currently considered Possible Value Trap. The stock's GF Value™ is A$2.12, compared to a current price of A$1.43 — trading 32.8% below its estimated fair value. The current Return-on-Tangible-Asset is 6.99%, which is 68% below median its 10-year median of 21.61 and 139.4% above the Retail - Cyclical industry median of 2.92. Adairs' overall GF Score™ is 79/100 with 8 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 Adairs (ASX:ADH), the current Return-on-Tangible-Asset is 6.99% 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.
Is Adairs (ASX:ADH) Overvalued in 2026?
Based on GuruFocus' analysis, Adairs stock appears to be undervalued.
The current stock price of A$1.43 is trading 32.8% below its estimated GF Value™ of A$2.12.
GuruFocus considers Adairs to be Possible Value Trap.
Key valuation signals for ASX:ADH:
Return-on-Tangible-Asset: 6.99% (68% below median its 10-year median of 21.61)
GF Value™: A$2.12 vs. price of A$1.43 (32.8% below fair value)
Industry Position: 139.4% above the Retail - Cyclical median (#392 of 1134)
No single metric tells the full story. See the ASX:ADH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adairs Ltd is engaged in the retailing of homewares and home furnishings in Australia and New Zealand. The company's product range includes categories, such as quilt covers and coverlets, sheets, cotton flannelette, pillowcases, quilts, pillows, mattress protectors, pillow protectors, blankets, nursery products, valances, bed wraps, bedspreads, and slippers, kids beach products and towels, cushions, throws, gifts and toys, wall arts, rugs, laundry, and home care products, chairs, bedheads, storage and shelves, ottomans and bench seats, and tables, as well as pots and plants, baskets, throws, home decor, and fragrance products, mirrors, lighting products, and tableware and pets products. Its operating segments are Adairs, Focus on Furniture, and Mocka.
79GF Score
Get the complete analysis for ASX:ADH
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