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Powell IndustriesFRA:PW2 +2.42%78 Return-on-Tangible-Asset is 16.41% as of Mar. 2026, which is 419% above its 10-year median of 3.16. GuruFocus rates FRA:PW2 with a GF Score™ of 78/100 and a GF Value™ of €65.34 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 3,073 Industrial Products companies, Powell Industries ranks better than 96.03% 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. Powell Industries's annualizedNet Income for the quarter that ended in Mar. 2026 was €158.8 Mil. Powell Industries's average total tangible assets for the quarter that ended in Mar. 2026 was €967.5 Mil. Therefore, Powell Industries's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 16.41%.
The historical rank and industry rank for Powell Industries's Return-on-Tangible-Asset or its related term are showing as below:
FRA:PW2'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -2.17 Med: 3.16 Max: 17.87
Current: 17.46
During the past 13 years, Powell Industries's highest Return-on-Tangible-Asset was 17.87%. The lowest was -2.17%. And the median was 3.16%.
FRA:PW2's Return-on-Tangible-Asset is ranked better than 96.03% of 3073
companies
in the Industrial Products industry
Industry Median: 3.26
vs FRA:PW2: 17.46
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.
Powell Industries Return-on-Tangible-Asset Related Terms
Powell Industries Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Powell Industries'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.
FRA:PW2 vs AYI, ENS, AEIS: Return-on-Tangible-Asset Comparison
For the Electrical Equipment & Parts subindustry, Powell Industries'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.
Powell Industries Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Powell Industries's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Powell Industries'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 four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 16.41% mean?
Powell Industries (FRA:PW2) has a Return-on-Tangible-Asset of 16.41% 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 Powell Industries and its competitors. This is 419% above median its historical median of 3.16. According to the industry distribution chart, Powell Industries ranks #122 out of 3073 companies in the Industrial Products industry, placing it in the top 4%.
Is Powell Industries' Return-on-Tangible-Asset too high?
Powell Industries' current Return-on-Tangible-Asset of 16.41% is 419% above median its 10-year median of 3.16. The Industrial Products industry median Return-on-Tangible-Asset is 3.26. Powell Industries' value of 16.41% is 403.4% above this industry median. Based on the distribution chart, Powell Industries ranks #122 out of 3073 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Powell Industries has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Powell Industries' Return-on-Tangible-Asset compare to AYI and ENS?
According to the Industrial Products industry distribution chart, Powell Industries ranks #122 out of 3073 companies for Return-on-Tangible-Asset. This places Powell Industries in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.26. Powell Industries' value of 16.41% is 403.4% above this benchmark. While the company's 10-year median is 3.16 vs. the industry median of 3.26, Powell Industries 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 3,073 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. Powell Industries's current Return-on-Tangible-Asset of 16.41% is 403.4% 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 Powell Industries 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. Powell Industries's current Return-on-Tangible-Asset is 16.41%, which is 419% above median its own 10-year median of 3.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Powell Industries stock overvalued right now?
Based on GuruFocus' analysis, Powell Industries (FRA:PW2) is currently considered Significantly Overvalued. The stock's GF Value™ is €65.34, compared to a current price of €207.20 — trading 217.1% above its estimated fair value. The current Return-on-Tangible-Asset is 16.41%, which is 419% above median its 10-year median of 3.16 and 403.4% above the Industrial Products industry median of 3.26. Powell Industries' overall GF Score™ is 78/100 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 Powell Industries (FRA:PW2), the current Return-on-Tangible-Asset is 16.41% 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 Powell Industries (FRA:PW2) Overvalued in 2026?
Based on GuruFocus' analysis, Powell Industries stock appears to be overvalued.
The current stock price of €207.20 is trading 217.1% above its estimated GF Value™ of €65.34.
GuruFocus considers Powell Industries to be Significantly Overvalued.
Key valuation signals for FRA:PW2:
Return-on-Tangible-Asset: 16.41% (419% above median its 10-year median of 3.16)
GF Value™: €65.34 vs. price of €207.20 (217.1% above fair value)
Industry Position: 403.4% above the Industrial Products median (#122 of 3073)
No single metric tells the full story. See the FRA:PW2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Powell Industries Inc is a United States-based company that develops, designs, manufactures, and services custom-engineered equipment and systems for electrical energy distribution, control, and monitoring. The company's principal products comprise integrated power control room substations, custom-engineered modules, electrical houses, traditional and arc-resistant distribution switchgear and control gear, and so on. These products are applied in oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light-rail traction power, electric utility, pulp and paper, and other heavy industrial markets. The company generates the majority of its sales from the United States, and the rest from Canada, Europe, Asia Pacific, and other regions.
78GF Score
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