DiplomaDPLMF 96 Return-on-Tangible-Asset is 24.54% as of Mar. 2026, which is 12% above its 10-year median of 22.00. GuruFocus rates DPLMF with a GF Score™ of 96/100 and a GF Value™ of $74.21 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 156 Industrial Distribution companies, Diploma ranks better than 98.08% 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. Diploma's annualizedNet Income for the quarter that ended in Mar. 2026 was $267 Mil. Diploma's average total tangible assets for the quarter that ended in Mar. 2026 was $1,090 Mil. Therefore, Diploma's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 24.54%.
The historical rank and industry rank for Diploma's Return-on-Tangible-Asset or its related term are showing as below:
DPLMF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 14.22 Med: 22 Max: 26.43
Current: 24.29
During the past 13 years, Diploma's highest Return-on-Tangible-Asset was 26.43%. The lowest was 14.22%. And the median was 22.00%.
DPLMF's Return-on-Tangible-Asset is ranked better than 98.08% of 156
companies
in the Industrial Distribution industry
Industry Median: 4.245
vs DPLMF: 24.29
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.
Diploma Return-on-Tangible-Asset Related Terms
Diploma Return-on-Tangible-Asset Historical Data
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The historical data trend for Diploma'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.
DPLMF vs GWW, FAST, FERG: Return-on-Tangible-Asset Comparison
For the Industrial Distribution subindustry, Diploma'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.
Diploma Return-on-Tangible-Asset vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Diploma's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Diploma'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 (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 24.54% mean?
Diploma (DPLMF) has a Return-on-Tangible-Asset of 24.54% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Diploma and its competitors. This is 12% above median its historical median of 22.00. Over the past decade, Diploma's Return-on-Tangible-Asset has ranged from 14.22 to 26.43. According to the industry distribution chart, Diploma ranks #3 out of 156 companies in the Industrial Distribution industry, placing it in the top 1.9%.
Is Diploma's Return-on-Tangible-Asset too high?
Diploma's current Return-on-Tangible-Asset of 24.54% is 12% above median its 10-year median of 22.00. Over the past 10 years, this metric has ranged from a low of 14.22 to a high of 26.43. The Industrial Distribution industry median Return-on-Tangible-Asset is 4.25. Diploma's value of 24.54% is 478.1% above this industry median. Based on the distribution chart, Diploma ranks #3 out of 156 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Diploma has a GF Score™ of 96/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diploma's Return-on-Tangible-Asset compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Diploma ranks #3 out of 156 companies for Return-on-Tangible-Asset. This places Diploma in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 4.25. Diploma's value of 24.54% is 478.1% above this benchmark. Historically, Diploma's own Return-on-Tangible-Asset has ranged from 14.22 to 26.43 over the past decade. While the company's 10-year median is 22.00 vs. the industry median of 4.25, Diploma 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 Distribution company?
The median Return-on-Tangible-Asset among Industrial Distribution companies is 4.25, based on 156 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. Diploma's current Return-on-Tangible-Asset of 24.54% is 478.1% 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 Diploma and its competitors. For the Industrial Distribution industry, the median Return-on-Tangible-Asset is 4.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diploma's current Return-on-Tangible-Asset is 24.54%, which is 12% above median its own 10-year median of 22.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diploma stock overvalued right now?
Based on GuruFocus' analysis, Diploma (DPLMF) is currently considered Modestly Overvalued. The stock's GF Value™ is $74.21, compared to a current price of $94.50 — trading 27.3% above its estimated fair value. The current Return-on-Tangible-Asset is 24.54%, which is 12% above median its 10-year median of 22.00 and 478.1% above the Industrial Distribution industry median of 4.25. Diploma's overall GF Score™ is 96/100 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 Diploma (DPLMF), the current Return-on-Tangible-Asset is 24.54% as of Mar. 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 Diploma (DPLMF) Overvalued in 2026?
Based on GuruFocus' analysis, Diploma stock appears to be overvalued.
The current stock price of $94.50 is trading 27.3% above its estimated GF Value™ of $74.21.
GuruFocus considers Diploma to be Modestly Overvalued.
Key valuation signals for DPLMF:
Return-on-Tangible-Asset: 24.54% (12% above median its 10-year median of 22.00)
GF Value™: $74.21 vs. price of $94.50 (27.3% above fair value)
Industry Position: 478.1% above the Industrial Distribution median (#3 of 156)
No single metric tells the full story. See the DPLMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diploma PLC is a group of businesses supplying specialised technical products and services to various industries. The Group is organized into three main reportable business sectors: Controls, Seals and Life Sciences. The company offers consumables, instrumentation, and related services to the healthcare and environmental industries; seals, gaskets, filters, cylinders, components, and kits for heavy mobile machinery and industrial equipment; and specialized wiring, connectors, fasteners, and control devices for various applications. It operates in segments such as Wire & Cable (UK), Industrial Automation, Specialty Adhesives, Windy City Wire, Interconnect and Specialty Fasteners. The company operates in UK, USA, Rest of Europe, and Rest of World.
96GF Score
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