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Fletcher BuildingASX:FBU +0.91%59 Return-on-Tangible-Asset is 6.68% as of Jun. 2026, which is 227% above its 10-year median of 2.04. GuruFocus rates ASX:FBU with a GF Score™ of 59/100 and a GF Value™ of A$1.98 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 413 Building Materials companies, Fletcher Building ranks better than 57.38% 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. Fletcher Building's annualizedNet Income for the quarter that ended in Jun. 2026 was A$393 Mil. Fletcher Building's average total tangible assets for the quarter that ended in Jun. 2026 was A$5,884 Mil. Therefore, Fletcher Building's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 6.68%.
The historical rank and industry rank for Fletcher Building's Return-on-Tangible-Asset or its related term are showing as below:
ASX:FBU'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -5.58 Med: 2.04 Max: 6.09
Current: 3.24
During the past 13 years, Fletcher Building's highest Return-on-Tangible-Asset was 6.09%. The lowest was -5.58%. And the median was 2.04%.
ASX:FBU's Return-on-Tangible-Asset is ranked better than 57.38% of 413
companies
in the Building Materials industry
Industry Median: 2.51
vs ASX:FBU: 3.24
Fletcher Building (ASX:FBU) 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.
Fletcher Building Return-on-Tangible-Asset Related Terms
Fletcher Building Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Fletcher Building'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:FBU vs CRH, VMC, MLM: Return-on-Tangible-Asset Comparison
For the Building Materials subindustry, Fletcher Building'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.
Fletcher Building Return-on-Tangible-Asset vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Fletcher Building's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Fletcher Building'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 (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 6.68% mean?
Fletcher Building (ASX:FBU) has a Return-on-Tangible-Asset of 6.68% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Fletcher Building and its competitors. This is 227% above median its historical median of 2.04. According to the industry distribution chart, Fletcher Building ranks #176 out of 413 companies in the Building Materials industry, placing it in the top 42.6%.
Is Fletcher Building's Return-on-Tangible-Asset too high?
Fletcher Building's current Return-on-Tangible-Asset of 6.68% is 227% above median its 10-year median of 2.04. The Building Materials industry median Return-on-Tangible-Asset is 2.51. Fletcher Building's value of 6.68% is 166.1% above this industry median. Based on the distribution chart, Fletcher Building ranks #176 out of 413 companies in the Building Materials industry, which is above the industry midpoint. Overall, Fletcher Building has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fletcher Building's Return-on-Tangible-Asset compare to CRH and VMC?
According to the Building Materials industry distribution chart, Fletcher Building ranks #176 out of 413 companies for Return-on-Tangible-Asset. This puts Fletcher Building in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.51. Fletcher Building's value of 6.68% is 166.1% above this benchmark. While the company's 10-year median is 2.04 vs. the industry median of 2.51, Fletcher Building 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 Building Materials company?
The median Return-on-Tangible-Asset among Building Materials companies is 2.51, based on 413 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. Fletcher Building's current Return-on-Tangible-Asset of 6.68% is 166.1% 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 Fletcher Building and its competitors. For the Building Materials industry, the median Return-on-Tangible-Asset is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fletcher Building's current Return-on-Tangible-Asset is 6.68%, which is 227% above median its own 10-year median of 2.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fletcher Building stock overvalued right now?
Based on GuruFocus' analysis, Fletcher Building (ASX:FBU) is currently considered Significantly Overvalued. The stock's GF Value™ is A$1.98, compared to a current price of A$3.31 — trading 67.2% above its estimated fair value. The current Return-on-Tangible-Asset is 6.68%, which is 227% above median its 10-year median of 2.04 and 166.1% above the Building Materials industry median of 2.51. Fletcher Building's overall GF Score™ is 59/100 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 Fletcher Building (ASX:FBU), the current Return-on-Tangible-Asset is 6.68% as of Jun. 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 Fletcher Building (ASX:FBU) Overvalued in 2026?
Based on GuruFocus' analysis, Fletcher Building stock appears to be overvalued.
The current stock price of A$3.31 is trading 67.2% above its estimated GF Value™ of A$1.98.
GuruFocus considers Fletcher Building to be Significantly Overvalued.
Key valuation signals for ASX:FBU:
Return-on-Tangible-Asset: 6.68% (227% above median its 10-year median of 2.04)
GF Value™: A$1.98 vs. price of A$3.31 (67.2% above fair value)
Industry Position: 166.1% above the Building Materials median (#176 of 413)
No single metric tells the full story. See the ASX:FBU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fletcher Building is a New Zealand-based building materials company with operations focused in New Zealand, but also extending to Australia. It has a conglomerate structure with diverse operations across concrete, building products, steel, retail distribution, and development. Most revenue is derived from new house construction, with smaller earnings contributions from commercial and infrastructure construction.
59GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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