ARBASX:ARB +3.14%92 Return-on-Tangible-Asset is 10.25% as of Dec. 2025, which is 36% below its 10-year median of 16.06. GuruFocus rates ASX:ARB with a GF Score™ of 92/100 and a GF Value™ of A$35.42 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,334 Vehicles & Parts companies, ARB ranks better than 90.4% 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. ARB's annualizedNet Income for the quarter that ended in Dec. 2025 was A$84.3 Mil. ARB's average total tangible assets for the quarter that ended in Dec. 2025 was A$822.8 Mil. Therefore, ARB's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 10.25%.
The historical rank and industry rank for ARB's Return-on-Tangible-Asset or its related term are showing as below:
ASX:ARB'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 10.82 Med: 16.06 Max: 21.58
Current: 10.82
During the past 13 years, ARB's highest Return-on-Tangible-Asset was 21.58%. The lowest was 10.82%. And the median was 16.06%.
ASX:ARB's Return-on-Tangible-Asset is ranked better than 90.4% of 1334
companies
in the Vehicles & Parts industry
Industry Median: 3.115
vs ASX:ARB: 10.82
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.
ARB Return-on-Tangible-Asset Related Terms
ARB Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for ARB'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:ARB vs ORLY, AZO: Return-on-Tangible-Asset Comparison
For the Auto Parts subindustry, ARB'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.
ARB Return-on-Tangible-Asset vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, ARB's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where ARB'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 10.25% mean?
ARB (ASX:ARB) has a Return-on-Tangible-Asset of 10.25% 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 ARB and its competitors. This is 36% below median its historical median of 16.06. Over the past decade, ARB's Return-on-Tangible-Asset has ranged from 10.82 to 21.58. According to the industry distribution chart, ARB ranks #128 out of 1334 companies in the Vehicles & Parts industry, placing it in the top 9.6%.
Is ARB's Return-on-Tangible-Asset too high?
ARB's current Return-on-Tangible-Asset of 10.25% is 36% below median its 10-year median of 16.06. Over the past 10 years, this metric has ranged from a low of 10.82 to a high of 21.58. The Vehicles & Parts industry median Return-on-Tangible-Asset is 3.12. ARB's value of 10.25% is 229.1% above this industry median. Based on the distribution chart, ARB ranks #128 out of 1334 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, ARB has a GF Score™ of 92/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ARB's Return-on-Tangible-Asset compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, ARB ranks #128 out of 1334 companies for Return-on-Tangible-Asset. This places ARB in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.12. ARB's value of 10.25% is 229.1% above this benchmark. Historically, ARB's own Return-on-Tangible-Asset has ranged from 10.82 to 21.58 over the past decade. While the company's 10-year median is 16.06 vs. the industry median of 3.12, ARB 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 Vehicles & Parts company?
The median Return-on-Tangible-Asset among Vehicles & Parts companies is 3.12, based on 1,334 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. ARB's current Return-on-Tangible-Asset of 10.25% is 229.1% 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 ARB and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Asset is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARB's current Return-on-Tangible-Asset is 10.25%, which is 36% below median its own 10-year median of 16.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARB stock overvalued right now?
Based on GuruFocus' analysis, ARB (ASX:ARB) is currently considered Significantly Undervalued. The stock's GF Value™ is A$35.42, compared to a current price of A$18.72 — trading 47.1% below its estimated fair value. The current Return-on-Tangible-Asset is 10.25%, which is 36% below median its 10-year median of 16.06 and 229.1% above the Vehicles & Parts industry median of 3.12. ARB's overall GF Score™ is 92/100 with 3 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 ARB (ASX:ARB), the current Return-on-Tangible-Asset is 10.25% 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 ARB (ASX:ARB) Overvalued in 2026?
Based on GuruFocus' analysis, ARB stock appears to be undervalued.
The current stock price of A$18.72 is trading 47.1% below its estimated GF Value™ of A$35.42.
GuruFocus considers ARB to be Significantly Undervalued.
Key valuation signals for ASX:ARB:
Return-on-Tangible-Asset: 10.25% (36% below median its 10-year median of 16.06)
GF Value™: A$35.42 vs. price of A$18.72 (47.1% below fair value)
Industry Position: 229.1% above the Vehicles & Parts median (#128 of 1334)
No single metric tells the full story. See the ASX:ARB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ARB designs, manufactures, and distributes four-wheel-drive and light commercial vehicle accessories. The firm has carved a niche with aftermarket accessories including bull bars, suspension systems, differentials, and lighting. ARB operates manufacturing plants in Australia and Thailand and sales and distribution centers across several countries. The Australian division, which generates the vast majority of group earnings, distributes through the ARB store network, ARB stockists, new-vehicle dealers, and fleet operators.
92GF Score
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