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Contact EnergyASX:CEN +1.07%61 Return-on-Tangible-Asset is 5.16% as of Dec. 2025, which is 50% above its 10-year median of 3.44. GuruFocus rates ASX:CEN with a GF Score™ of 61/100 and a GF Value™ of A$6.74 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 449 Utilities - Independent Power Producers companies, Contact Energy ranks better than 79.29% 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. Contact Energy's annualizedNet Income for the quarter that ended in Dec. 2025 was A$355 Mil. Contact Energy's average total tangible assets for the quarter that ended in Dec. 2025 was A$6,882 Mil. Therefore, Contact Energy's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 5.16%.
The historical rank and industry rank for Contact Energy's Return-on-Tangible-Asset or its related term are showing as below:
ASX:CEN'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -1.23 Med: 3.44 Max: 7.34
Current: 5.53
During the past 13 years, Contact Energy's highest Return-on-Tangible-Asset was 7.34%. The lowest was -1.23%. And the median was 3.44%.
ASX:CEN's Return-on-Tangible-Asset is ranked better than 79.29% of 449
companies
in the Utilities - Independent Power Producers industry
Industry Median: 1.29
vs ASX:CEN: 5.53
Contact Energy (ASX:CEN) 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.
Contact Energy Return-on-Tangible-Asset Related Terms
Contact Energy Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Contact Energy'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.
Contact Energy Return-on-Tangible-Asset Competitor Comparison
For the Utilities - Renewable subindustry, Contact Energy'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.
Contact Energy Return-on-Tangible-Asset vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Contact Energy's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Contact Energy'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 5.16% mean?
Contact Energy (ASX:CEN) has a Return-on-Tangible-Asset of 5.16% 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 Contact Energy and its competitors. This is 50% above median its historical median of 3.44. According to the industry distribution chart, Contact Energy ranks #93 out of 449 companies in the Utilities - Independent Power Producers industry, placing it in the top 20.7%.
Is Contact Energy's Return-on-Tangible-Asset too high?
Contact Energy's current Return-on-Tangible-Asset of 5.16% is 50% above median its 10-year median of 3.44. The Utilities - Independent Power Producers industry median Return-on-Tangible-Asset is 1.29. Contact Energy's value of 5.16% is 300% above this industry median. Based on the distribution chart, Contact Energy ranks #93 out of 449 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Contact Energy has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Contact Energy's Return-on-Tangible-Asset compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Contact Energy ranks #93 out of 449 companies for Return-on-Tangible-Asset. This places Contact Energy in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 1.29. Contact Energy's value of 5.16% is 300% above this benchmark. While the company's 10-year median is 3.44 vs. the industry median of 1.29, Contact Energy 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 an Utilities - Independent Power Producers company?
The median Return-on-Tangible-Asset among Utilities - Independent Power Producers companies is 1.29, based on 449 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. Contact Energy's current Return-on-Tangible-Asset of 5.16% is 300% 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 Contact Energy and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Asset is 1.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Contact Energy's current Return-on-Tangible-Asset is 5.16%, which is 50% above median its own 10-year median of 3.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Contact Energy stock overvalued right now?
Based on GuruFocus' analysis, Contact Energy (ASX:CEN) is currently considered Modestly Overvalued. The stock's GF Value™ is A$6.74, compared to a current price of A$7.58 — trading 12.5% above its estimated fair value. The current Return-on-Tangible-Asset is 5.16%, which is 50% above median its 10-year median of 3.44 and 300% above the Utilities - Independent Power Producers industry median of 1.29. Contact Energy's overall GF Score™ is 61/100 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 Contact Energy (ASX:CEN), the current Return-on-Tangible-Asset is 5.16% 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 Contact Energy (ASX:CEN) Overvalued in 2026?
Based on GuruFocus' analysis, Contact Energy stock appears to be overvalued.
The current stock price of A$7.58 is trading 12.5% above its estimated GF Value™ of A$6.74.
GuruFocus considers Contact Energy to be Modestly Overvalued.
Key valuation signals for ASX:CEN:
Return-on-Tangible-Asset: 5.16% (50% above median its 10-year median of 3.44)
GF Value™: A$6.74 vs. price of A$7.58 (12.5% above fair value)
Industry Position: 300% above the Utilities - Independent Power Producers median (#93 of 449)
No single metric tells the full story. See the ASX:CEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Contact Energy is a diversified and integrated energy company. It owns a fleet of hydro, geothermal, and gas-fired generation assets, which produce more than 25% of New Zealand's electricity. It also retails electricity and gas to nearly half a million customers.
61GF Score
Get the complete analysis for ASX:CEN
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