Downer EDIDNERY -8.46%63 Return-on-Tangible-Asset is 4.43% as of Dec. 2025, which is 47% above its 10-year median of 3.02. GuruFocus rates DNERY with a GF Score™ of 63/100 and a GF Value™ of $3.40. The stock has 7 warning signs investors should review. Among 1,777 Construction companies, Downer EDI ranks better than 55.66% 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. Downer EDI's annualizedNet Income for the quarter that ended in Dec. 2025 was $124 Mil. Downer EDI's average total tangible assets for the quarter that ended in Dec. 2025 was $2,801 Mil. Therefore, Downer EDI's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 4.43%.
The historical rank and industry rank for Downer EDI's Return-on-Tangible-Asset or its related term are showing as below:
DNERY'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -7.83 Med: 3.02 Max: 5.72
Current: 3.81
During the past 13 years, Downer EDI's highest Return-on-Tangible-Asset was 5.72%. The lowest was -7.83%. And the median was 3.02%.
DNERY's Return-on-Tangible-Asset is ranked better than 55.66% of 1777
companies
in the Construction industry
Industry Median: 3
vs DNERY: 3.81
Downer EDI (OTCPK:DNERY) 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.
Downer EDI Return-on-Tangible-Asset Related Terms
Downer EDI Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Downer EDI'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.
DNERY vs PWR, FIX, EME: Return-on-Tangible-Asset Comparison
For the Engineering & Construction subindustry, Downer EDI'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.
Downer EDI Return-on-Tangible-Asset vs Construction Industry
For the Construction industry and Industrials sector, Downer EDI's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Downer EDI'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 4.43% mean?
Downer EDI (DNERY) has a Return-on-Tangible-Asset of 4.43% 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 Downer EDI and its competitors. This is 47% above median its historical median of 3.02. According to the industry distribution chart, Downer EDI ranks #788 out of 1777 companies in the Construction industry, placing it in the top 44.3%.
Is Downer EDI's Return-on-Tangible-Asset too high?
Downer EDI's current Return-on-Tangible-Asset of 4.43% is 47% above median its 10-year median of 3.02. The Construction industry median Return-on-Tangible-Asset is 3.00. Downer EDI's value of 4.43% is 47.7% above this industry median. Based on the distribution chart, Downer EDI ranks #788 out of 1777 companies in the Construction industry, which is above the industry midpoint. Overall, Downer EDI has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does Downer EDI's Return-on-Tangible-Asset compare to PWR and FIX?
According to the Construction industry distribution chart, Downer EDI ranks #788 out of 1777 companies for Return-on-Tangible-Asset. This puts Downer EDI in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.00. Downer EDI's value of 4.43% is 47.7% above this benchmark. While the company's 10-year median is 3.02 vs. the industry median of 3.00, Downer EDI 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 Construction company?
The median Return-on-Tangible-Asset among Construction companies is 3.00, based on 1,777 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. Downer EDI's current Return-on-Tangible-Asset of 4.43% is 47.7% 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 Downer EDI and its competitors. For the Construction industry, the median Return-on-Tangible-Asset is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Downer EDI's current Return-on-Tangible-Asset is 4.43%, which is 47% above median its own 10-year median of 3.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Downer EDI stock overvalued right now?
Downer EDI (DNERY) has a current Return-on-Tangible-Asset of 4.43%. The stock's GF Value™ is $3.40, compared to a current price of $5.95 — trading 75% above its estimated fair value. The current Return-on-Tangible-Asset is 4.43%, which is 47% above median its 10-year median of 3.02 and 47.7% above the Construction industry median of 3.00. Downer EDI's overall GF Score™ is 63/100 with 7 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 Downer EDI (DNERY), the current Return-on-Tangible-Asset is 4.43% 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 Downer EDI (DNERY) Overvalued in 2026?
Based on GuruFocus' analysis, Downer EDI stock appears to be overvalued.
The current stock price of $5.95 is trading 75% above its estimated GF Value™ of $3.40.
Key valuation signals for DNERY:
Return-on-Tangible-Asset: 4.43% (47% above median its 10-year median of 3.02)
GF Value™: $3.40 vs. price of $5.95 (75% above fair value)
Industry Position: 47.7% above the Construction median (#788 of 1777)
No single metric tells the full story. See the DNERY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Downer conducts construction and maintenance in the transport, technology and communications, utilities, rail, and defense segments. The future of Downer is focused on urban services, with mining and higher-risk construction businesses exited. Downer has strong relationships with local and state governments that outsource operational and management activities, ensuring a relatively consistent stream of recurring contract work. The transport segment contributes the majority of earnings.
63GF 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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