Defence HoldingsALRDF -25.00% Return-on-Tangible-Equity is -1,123.46% as of Sep. 2025. The stock has 5 warning signs investors should review. Among 334 Aerospace & Defense companies, Defence Holdings ranks worse than 93.11% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Defence Holdings's annualized net income for the quarter that ended in Sep. 2025 was $-9.48 Mil. Defence Holdings's average shareholder tangible equity for the quarter that ended in Sep. 2025 was $0.84 Mil. Therefore, Defence Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2025 was -1,123.46%.
The historical rank and industry rank for Defence Holdings's Return-on-Tangible-Equity or its related term are showing as below:
ALRDF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -132.93 Med: -117.67 Max: -113.89
Current: -132.93
During the past 3 years, Defence Holdings's highest Return-on-Tangible-Equity was -113.89%. The lowest was -132.93%. And the median was -117.67%.
ALRDF's Return-on-Tangible-Equity is ranked worse than 93.11% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs ALRDF: -132.93
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Defence Holdings Return-on-Tangible-Equity Related Terms
Defence Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Defence Holdings's Return-on-Tangible-Equity 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.
ALRDF vs SPCX, GE, RTX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Defence Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Defence Holdings Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Defence Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Defence Holdings's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Sep. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -1,123.46% mean?
Defence Holdings (ALRDF) has a Return-on-Tangible-Equity of -1,123.46% as of Sep. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Defence Holdings and its competitors. According to the industry distribution chart, Defence Holdings ranks #311 out of 334 companies in the Aerospace & Defense industry, placing it in the top 93.1%.
Is Defence Holdings' Return-on-Tangible-Equity too high?
Defence Holdings' current Return-on-Tangible-Equity is -1,123.46%. Based on the distribution chart, Defence Holdings ranks #311 out of 334 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers.
How does Defence Holdings' Return-on-Tangible-Equity compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Defence Holdings ranks #311 out of 334 companies for Return-on-Tangible-Equity. This places Defence Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.20. 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-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Defence Holdings and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Defence Holdings's current Return-on-Tangible-Equity is -1,123.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Defence Holdings stock overvalued right now?
Defence Holdings (ALRDF) has a current Return-on-Tangible-Equity of -1,123.46%. The current Return-on-Tangible-Equity is -1,123.46%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Defence Holdings (ALRDF), the current Return-on-Tangible-Equity is -1,123.46% as of Sep. 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.
Defence Holdings PLC is engaged in providing defence and security solutions. The company leverage deep capital-markets expertise and a network of technology partners, and to develop and acquire sensors, AI-driven analytics, secure communications, and autonomous platforms that enhance the operational advantage of its customers across land, sea, air, space and cyber domains.
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