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Billing Services GroupLSE:BILL Return-on-Tangible-Asset is 0.56% as of Jun. 2019, which is 78% below its 10-year median of 2.56. The stock has 5 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. Billing Services Group's annualizedNet Income for the quarter that ended in Jun. 2019 was £0.07 Mil. Billing Services Group's average total tangible assets for the quarter that ended in Jun. 2019 was £12.82 Mil. Therefore, Billing Services Group's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2019 was 0.56%.
The historical rank and industry rank for Billing Services Group's Return-on-Tangible-Asset or its related term are showing as below:
LSE:BILL'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -41.93 Med: 2.56 Max: 40.43
Current: -43.7
During the past 13 years, Billing Services Group's highest Return-on-Tangible-Asset was 40.43%. The lowest was -41.93%. And the median was 2.56%.
LSE:BILL's Return-on-Tangible-Asset is not ranked
in the Business Services industry.
Industry Median: 3.955
vs LSE:BILL: -43.70
Billing Services Group (LSE:BILL) 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.
Billing Services Group Return-on-Tangible-Asset Related Terms
Billing Services Group Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Billing Services 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.
Billing Services Group Return-on-Tangible-Asset Chart
LSE:BILL vs GPN, CTAS, CPRT: Return-on-Tangible-Asset Comparison
For the Specialty Business Services subindustry, Billing Services 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.
Billing Services Group Return-on-Tangible-Asset vs Business Services Industry
For the Business Services industry and Industrials sector, Billing Services Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Billing Services 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 (Jun. 2019) net income data.
What does a Return-on-Tangible-Asset of 0.56% mean?
Billing Services Group (LSE:BILL) has a Return-on-Tangible-Asset of 0.56% as of Jun. 2019. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Billing Services Group and its competitors. This is 78% below median its historical median of 2.56.
Is Billing Services Group's Return-on-Tangible-Asset too high?
Billing Services Group's current Return-on-Tangible-Asset of 0.56% is 78% below median its 10-year median of 2.56. The Business Services industry median Return-on-Tangible-Asset is 3.96. Billing Services Group's value of 0.56% is 85.8% below this industry median.
How does Billing Services Group's Return-on-Tangible-Asset compare to GPN and CTAS?
Billing Services Group's Return-on-Tangible-Asset of 0.56% can be compared against companies in the Business Services industry. The industry median Return-on-Tangible-Asset is 3.96. Billing Services Group's value of 0.56% is 85.8% below this benchmark. While the company's 10-year median is 2.56 vs. the industry median of 3.96, Billing Services Group has consistently been below 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 Business Services company?
The median Return-on-Tangible-Asset among Business Services companies is 3.96, based on 1,096 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. Billing Services Group's current Return-on-Tangible-Asset of 0.56% is 85.8% below 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 Billing Services Group and its competitors. For the Business Services industry, the median Return-on-Tangible-Asset is 3.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Billing Services Group's current Return-on-Tangible-Asset is 0.56%, which is 78% below median its own 10-year median of 2.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Billing Services Group stock overvalued right now?
Based on GuruFocus' analysis, Billing Services Group (LSE:BILL) is currently considered Possible Value Trap. The current Return-on-Tangible-Asset is 0.56%, which is 78% below median its 10-year median of 2.56 and 85.8% below the Business Services industry median of 3.96. 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 Billing Services Group (LSE:BILL), the current Return-on-Tangible-Asset is 0.56% as of Jun. 2019. 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.
Billing Services Group Ltd is focused on payment solutions. The company offers a powerful suite of financial clearinghouse services for merchants, online stores, and telecommunications companies. Its services include local exchange carrier (LEC) phone clearing, billing and settlement solutions, toll clearing services, a Wi-Fi wholesale settlement solution, and VoiceLog Third Party Verification. The company generates a majority of revenue from LEC billing. Its geographical segment includes North America and Europe, the Middle East and Africa. The company derives the maximum revenue from North America.
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