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Smiths GroupCHIX:SMINL +1.55%68 Return-on-Tangible-Asset is 8.17% as of Jan. 2026, which is 8% below its 10-year median of 8.92. GuruFocus rates CHIX:SMINL with a GF Score™ of 68/100 and a GF Value™ of £12.76 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 3,077 Industrial Products companies, Smiths Group ranks better than 79.75% 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. Smiths Group's annualizedNet Income for the quarter that ended in Jan. 2026 was £260 Mil. Smiths Group's average total tangible assets for the quarter that ended in Jan. 2026 was £3,184 Mil. Therefore, Smiths Group's annualized Return-on-Tangible-Asset for the quarter that ended in Jan. 2026 was 8.17%.
The historical rank and industry rank for Smiths Group's Return-on-Tangible-Asset or its related term are showing as below:
CHIX:SMINl'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 6.67 Med: 8.92 Max: 27.64
Current: 8.4
During the past 13 years, Smiths Group's highest Return-on-Tangible-Asset was 27.64%. The lowest was 6.67%. And the median was 8.92%.
CHIX:SMINl's Return-on-Tangible-Asset is ranked better than 79.75% of 3077
companies
in the Industrial Products industry
Industry Median: 3.26
vs CHIX:SMINl: 8.40
Smiths Group (CHIX:SMINl) 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.
Smiths Group Return-on-Tangible-Asset Related Terms
Smiths Group Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Smiths Group'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.
CHIX:SMINL vs GEV, ETN, PH: Return-on-Tangible-Asset Comparison
For the Specialty Industrial Machinery subindustry, Smiths Group'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.
Smiths Group Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Smiths Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Smiths Group'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 (Jan. 2026) net income data.
What does a Return-on-Tangible-Asset of 8.17% mean?
Smiths Group (CHIX:SMINL) has a Return-on-Tangible-Asset of 8.17% as of Jan. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Smiths Group and its competitors. This is near median its historical median of 8.92. Over the past decade, Smiths Group's Return-on-Tangible-Asset has ranged from 6.67 to 27.64. According to the industry distribution chart, Smiths Group ranks #623 out of 3077 companies in the Industrial Products industry, placing it in the top 20.2%.
Is Smiths Group's Return-on-Tangible-Asset too high?
Smiths Group's current Return-on-Tangible-Asset of 8.17% is near median its 10-year median of 8.92. Over the past 10 years, this metric has ranged from a low of 6.67 to a high of 27.64. The Industrial Products industry median Return-on-Tangible-Asset is 3.26. Smiths Group's value of 8.17% is 150.6% above this industry median. Based on the distribution chart, Smiths Group ranks #623 out of 3077 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Smiths Group has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smiths Group's Return-on-Tangible-Asset compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Smiths Group ranks #623 out of 3077 companies for Return-on-Tangible-Asset. This places Smiths Group in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.26. Smiths Group's value of 8.17% is 150.6% above this benchmark. Historically, Smiths Group's own Return-on-Tangible-Asset has ranged from 6.67 to 27.64 over the past decade. While the company's 10-year median is 8.92 vs. the industry median of 3.26, Smiths Group 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 Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.26, based on 3,077 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. Smiths Group's current Return-on-Tangible-Asset of 8.17% is 150.6% 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 Smiths Group and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smiths Group's current Return-on-Tangible-Asset is 8.17%, which is near median its own 10-year median of 8.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smiths Group stock overvalued right now?
Based on GuruFocus' analysis, Smiths Group (CHIX:SMINL) is currently considered Significantly Overvalued. The stock's GF Value™ is £12.76, compared to a current price of £26.94 — trading 111.1% above its estimated fair value. The current Return-on-Tangible-Asset is 8.17%, which is near median its 10-year median of 8.92 and 150.6% above the Industrial Products industry median of 3.26. Smiths Group's overall GF Score™ is 68/100 with 6 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 Smiths Group (CHIX:SMINL), the current Return-on-Tangible-Asset is 8.17% as of Jan. 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 Smiths Group (CHIX:SMINL) Overvalued in 2026?
Based on GuruFocus' analysis, Smiths Group stock appears to be overvalued.
The current stock price of £26.94 is trading 111.1% above its estimated GF Value™ of £12.76.
GuruFocus considers Smiths Group to be Significantly Overvalued.
Key valuation signals for CHIX:SMINL:
Return-on-Tangible-Asset: 8.17% (near median its 10-year median of 8.92)
GF Value™: £12.76 vs. price of £26.94 (111.1% above fair value)
Industry Position: 150.6% above the Industrial Products median (#623 of 3077)
No single metric tells the full story. See the CHIX:SMINL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smiths Group is a UK-based industrial technology company focused on engineered solutions for fluid and energy management, following the agreed divestments of its Detection and Interconnect divisions. Its two core businesses—John Crane and Flex-Tek - serve critical infrastructure, energy, aerospace, HVAC, and industrial markets. John Crane supplies mechanical seals, filtration systems, and condition-monitoring technologies used in rotating equipment, with a high-margin, recurring aftermarket business. Flex-Tek provides specialized tubing, heating components, and ducting systems primarily for US HVAC and aerospace OEMs.
68GF Score
Get the complete analysis for CHIX:SMINL
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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