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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. Karoon Energy's annualizedNet Income for the quarter that ended in Dec. 2025 was A$164.0 Mil. Karoon Energy's average total tangible assets for the quarter that ended in Dec. 2025 was A$2,652.6 Mil. Therefore, Karoon Energy's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 6.18%.
The historical rank and industry rank for Karoon Energy's Return-on-Tangible-Asset or its related term are showing as below:
ASX:KAR'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -25.44 Med: -5.53 Max: 14.66
Current: 6.85
During the past 13 years, Karoon Energy's highest Return-on-Tangible-Asset was 14.66%. The lowest was -25.44%. And the median was -5.53%.
ASX:KAR's Return-on-Tangible-Asset is ranked better than 76.76% of 1024
companies
in the Oil & Gas industry
Industry Median: 2.08
vs ASX:KAR: 6.85
Karoon Energy (ASX:KAR) 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.
Karoon Energy Return-on-Tangible-Asset Related Terms
Karoon Energy Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Karoon 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.
ASX:KAR vs COP, EOG, FANG: Return-on-Tangible-Asset Comparison
For the Oil & Gas E&P subindustry, Karoon 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.
Karoon Energy Return-on-Tangible-Asset vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Karoon Energy's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Karoon 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 6.18% mean?
Karoon Energy (ASX:KAR) has a Return-on-Tangible-Asset of 6.18% 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 Karoon Energy and its competitors. According to the industry distribution chart, Karoon Energy ranks #238 out of 1024 companies in the Oil & Gas industry, placing it in the top 23.2%.
Is Karoon Energy's Return-on-Tangible-Asset too high?
Karoon Energy's current Return-on-Tangible-Asset is 6.18%. The Oil & Gas industry median Return-on-Tangible-Asset is 2.08. Karoon Energy's value of 6.18% is 197.1% above this industry median. Based on the distribution chart, Karoon Energy ranks #238 out of 1024 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Karoon Energy has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Karoon Energy's Return-on-Tangible-Asset compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Karoon Energy ranks #238 out of 1024 companies for Return-on-Tangible-Asset. This places Karoon Energy in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.08. Karoon Energy's value of 6.18% is 197.1% above this benchmark. 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 Oil & Gas company?
The median Return-on-Tangible-Asset among Oil & Gas companies is 2.08, based on 1,024 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. Karoon Energy's current Return-on-Tangible-Asset of 6.18% is 197.1% 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 Karoon Energy and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Asset is 2.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karoon Energy's current Return-on-Tangible-Asset is 6.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karoon Energy stock overvalued right now?
Based on GuruFocus' analysis, Karoon Energy (ASX:KAR) is currently considered Fairly Valued. The stock's GF Value™ is A$1.62, compared to a current price of A$1.50 — trading 7.7% below its estimated fair value. The current Return-on-Tangible-Asset is 6.18% and 197.1% above the Oil & Gas industry median of 2.08. Karoon Energy's overall GF Score™ is 58/100 with 2 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 Karoon Energy (ASX:KAR), the current Return-on-Tangible-Asset is 6.18% 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 Karoon Energy (ASX:KAR) Overvalued in 2026?
Based on GuruFocus' analysis, Karoon Energy stock appears to be undervalued.
The current stock price of A$1.50 is trading 7.7% below its estimated GF Value™ of A$1.62.
GuruFocus considers Karoon Energy to be Fairly Valued.
Key valuation signals for ASX:KAR:
Return-on-Tangible-Asset: 6.18%
GF Value™: A$1.62 vs. price of A$1.50 (7.7% below fair value)
Industry Position: 197.1% above the Oil & Gas median (#238 of 1024)
No single metric tells the full story. See the ASX:KAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karoon produces around 8 million barrels of oil equivalent annually from its wholly owned Baúna field in Brazil's offshore Santos Basin and around 3.5 mmboe from 30% owned Who Dat in the US Gulf. The company acquired Baúna from Petrobras in 2020 and steadily increased production via well interventions and new developments. Field life is approaching six years based on proven and probable reserves of 46 million barrels at the end of December 2025, though this excludes a further 140 million barrels in 2C contingent resources that have the potential to increase life further. We credit a life of more than 10 years, assuming conversion of some 2C contingent resources into the reserve category with drilling. There are also prospective untested targets within Karoon's permits.
58GF Score
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