Grafton GroupGROUF Return-on-Tangible-Asset is 6.56% as of Dec. 2025, which is 3% below its 10-year median of 6.79. The stock has 3 warning signs investors should review.
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. Grafton Group's annualizedNet Income for the quarter that ended in Dec. 2025 was $182 Mil. Grafton Group's average total tangible assets for the quarter that ended in Dec. 2025 was $2,770 Mil. Therefore, Grafton Group's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 6.56%.
The historical rank and industry rank for Grafton Group's Return-on-Tangible-Asset or its related term are showing as below:
GROUF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.77 Med: 6.79 Max: 15.61
Current: 9.75
During the past 13 years, Grafton Group's highest Return-on-Tangible-Asset was 15.61%. The lowest was 2.77%. And the median was 6.79%.
GROUF's Return-on-Tangible-Asset is not ranked
in the Industrial Distribution industry.
Industry Median: 4.22
vs GROUF: 9.75
Grafton Group (OTCPK:GROUF) 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.
Grafton Group Return-on-Tangible-Asset Related Terms
Grafton Group Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Grafton 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.
GROUF vs FAST, GWW, FERG: Return-on-Tangible-Asset Comparison
For the Industrial Distribution subindustry, Grafton 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.
Grafton Group Return-on-Tangible-Asset vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Grafton Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Grafton 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 (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 6.56% mean?
Grafton Group (GROUF) has a Return-on-Tangible-Asset of 6.56% 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 Grafton Group and its competitors. This is near median its historical median of 6.79. Over the past decade, Grafton Group's Return-on-Tangible-Asset has ranged from 2.77 to 15.61.
Is Grafton Group's Return-on-Tangible-Asset too high?
Grafton Group's current Return-on-Tangible-Asset of 6.56% is near median its 10-year median of 6.79. Over the past 10 years, this metric has ranged from a low of 2.77 to a high of 15.61. The Industrial Distribution industry median Return-on-Tangible-Asset is 4.22. Grafton Group's value of 6.56% is 55.5% above this industry median.
How does Grafton Group's Return-on-Tangible-Asset compare to FAST and GWW?
Grafton Group's Return-on-Tangible-Asset of 6.56% can be compared against companies in the Industrial Distribution industry. The industry median Return-on-Tangible-Asset is 4.22. Grafton Group's value of 6.56% is 55.5% above this benchmark. Historically, Grafton Group's own Return-on-Tangible-Asset has ranged from 2.77 to 15.61 over the past decade. While the company's 10-year median is 6.79 vs. the industry median of 4.22, Grafton 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 Distribution company?
The median Return-on-Tangible-Asset among Industrial Distribution companies is 4.22, based on 157 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. Grafton Group's current Return-on-Tangible-Asset of 6.56% is 55.5% 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 Grafton Group and its competitors. For the Industrial Distribution industry, the median Return-on-Tangible-Asset is 4.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grafton Group's current Return-on-Tangible-Asset is 6.56%, which is near median its own 10-year median of 6.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grafton Group stock overvalued right now?
Based on GuruFocus' analysis, Grafton Group (GROUF) is currently considered Modestly Overvalued. The stock's GF Value™ is $9.59, compared to a current price of $11.05 — trading 15.2% above its estimated fair value. The current Return-on-Tangible-Asset is 6.56%, which is near median its 10-year median of 6.79 and 55.5% above the Industrial Distribution industry median of 4.22. 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 Grafton Group (GROUF), the current Return-on-Tangible-Asset is 6.56% 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.
Grafton Group PLC is a distributor of building materials that operates in three segments; The Distribution segment is into the distribution of building and plumbing materials to professional tradespeople engaged in residential repair, maintenance, and improvement projects and also in residential and other new build construction, The Retailing segment operates DIY and home improvement business from a network of stores that supply mainly retail customers with wide products for DIY and for the home and garden, and The Manufacturing segment is into the manufacture of dry mortar in Great Britain. The company also operates in residential and other new build construction. Geographically, the company generates over half of its revenue from the United Kingdom.
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