Kip McGrath Education CentresASX:KME 61 Return-on-Tangible-Asset is 26.79% as of Dec. 2025, which is 102% above its 10-year median of 13.29. GuruFocus rates ASX:KME with a GF Score™ of 61/100 and a GF Value™ of A$0.55 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 263 Education companies, Kip McGrath Education Centres ranks worse than 92.4% on this metric.
The historical rank and industry rank for Kip McGrath Education Centres's Return-on-Tangible-Asset or its related term are showing as below:
ASX:KME'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -42.8 Med: 13.29 Max: 32.92
Current: -32.08
During the past 13 years, Kip McGrath Education Centres's highest Return-on-Tangible-Asset was 32.92%. The lowest was -42.80%. And the median was 13.29%.
ASX:KME's Return-on-Tangible-Asset is ranked worse than 92.4% of 263
companies
in the Education industry
Industry Median: 4.31
vs ASX:KME: -32.08
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.
Kip McGrath Education Centres Return-on-Tangible-Asset Related Terms
Kip McGrath Education Centres Return-on-Tangible-Asset Historical Data
* 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:KME vs EDU, TAL, LAUR: Return-on-Tangible-Asset Comparison
For the Education & Training Services subindustry, Kip McGrath Education Centres'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.
Kip McGrath Education Centres Return-on-Tangible-Asset vs Education Industry
For the Education industry and Consumer Defensive sector, Kip McGrath Education Centres's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Kip McGrath Education Centres'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 26.79% mean?
Kip McGrath Education Centres (ASX:KME) has a Return-on-Tangible-Asset of 26.79% 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 Kip McGrath Education Centres and its competitors. This is 102% above median its historical median of 13.29. According to the industry distribution chart, Kip McGrath Education Centres ranks #243 out of 263 companies in the Education industry, placing it in the top 92.4%.
Is Kip McGrath Education Centres' Return-on-Tangible-Asset too high?
Kip McGrath Education Centres' current Return-on-Tangible-Asset of 26.79% is 102% above median its 10-year median of 13.29. The Education industry median Return-on-Tangible-Asset is 4.31. Kip McGrath Education Centres' value of 26.79% is 521.6% above this industry median. Based on the distribution chart, Kip McGrath Education Centres ranks #243 out of 263 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Kip McGrath Education Centres has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kip McGrath Education Centres' Return-on-Tangible-Asset compare to EDU and TAL?
According to the Education industry distribution chart, Kip McGrath Education Centres ranks #243 out of 263 companies for Return-on-Tangible-Asset. This places Kip McGrath Education Centres in the lower half of its industry. The industry median Return-on-Tangible-Asset is 4.31. Kip McGrath Education Centres' value of 26.79% is 521.6% above this benchmark. While the company's 10-year median is 13.29 vs. the industry median of 4.31, Kip McGrath Education Centres 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 Education company?
The median Return-on-Tangible-Asset among Education companies is 4.31, based on 263 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. Kip McGrath Education Centres's current Return-on-Tangible-Asset of 26.79% is 521.6% 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 Kip McGrath Education Centres and its competitors. For the Education industry, the median Return-on-Tangible-Asset is 4.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kip McGrath Education Centres's current Return-on-Tangible-Asset is 26.79%, which is 102% above median its own 10-year median of 13.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kip McGrath Education Centres stock overvalued right now?
Based on GuruFocus' analysis, Kip McGrath Education Centres (ASX:KME) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.55, compared to a current price of A$0.49 — trading 10.9% below its estimated fair value. The current Return-on-Tangible-Asset is 26.79%, which is 102% above median its 10-year median of 13.29 and 521.6% above the Education industry median of 4.31. Kip McGrath Education Centres' overall GF Score™ is 61/100 with 4 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 Kip McGrath Education Centres (ASX:KME), the current Return-on-Tangible-Asset is 26.79% 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 Kip McGrath Education Centres (ASX:KME) Overvalued in 2026?
Based on GuruFocus' analysis, Kip McGrath Education Centres stock appears to be undervalued.
The current stock price of A$0.49 is trading 10.9% below its estimated GF Value™ of A$0.55.
GuruFocus considers Kip McGrath Education Centres to be Modestly Undervalued.
Key valuation signals for ASX:KME:
Return-on-Tangible-Asset: 26.79% (102% above median its 10-year median of 13.29)
GF Value™: A$0.55 vs. price of A$0.49 (10.9% below fair value)
Industry Position: 521.6% above the Education median (#243 of 263)
No single metric tells the full story. See the ASX:KME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kip McGrath Education Centres Business Description
Kip McGrath Education Centres Ltd offers supplementary education to students through the franchise in Australia and overseas, in the United Kingdom and New Zealand. Its products are face-to-face tuition programs, direct at-home educational products, and online tertiary courses. Geographically, the company operates in Australasia, the United Kingdom and Europe, and Other overseas regions. It derives revenue from franchise fees, student lesson fees, sales of master territories and franchise centers, and direct sales, of which a majority of the revenue is derived from franchise fees.
61GF Score
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