ALFABS AUSTRALIAASX:AAL -3.64%20 Return-on-Tangible-Equity is 4.19% as of Dec. 2025, which is 68% below its 10-year median of 13.19. GuruFocus rates ASX:AAL with a GF Score™ of 20/100. The stock has 5 warning signs investors should review. Among 549 Conglomerates companies, ALFABS AUSTRALIA ranks better than 66.3% 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. ALFABS AUSTRALIA's annualized net income for the quarter that ended in Dec. 2025 was A$2.6 Mil. ALFABS AUSTRALIA's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$62.9 Mil. Therefore, ALFABS AUSTRALIA's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 4.19%.
The historical rank and industry rank for ALFABS AUSTRALIA's Return-on-Tangible-Equity or its related term are showing as below:
ASX:AAL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.29 Med: 13.19 Max: 20.09
Current: 12.35
During the past 4 years, ALFABS AUSTRALIA's highest Return-on-Tangible-Equity was 20.09%. The lowest was 6.29%. And the median was 13.19%.
ASX:AAL's Return-on-Tangible-Equity is ranked better than 66.3% of 549
companies
in the Conglomerates industry
Industry Median: 7.44
vs ASX:AAL: 12.35
ALFABS AUSTRALIA (ASX:AAL) Return-on-Tangible-Equity Explanation
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.
ALFABS AUSTRALIA Return-on-Tangible-Equity Related Terms
ALFABS AUSTRALIA Return-on-Tangible-Equity Historical Data
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The historical data trend for ALFABS AUSTRALIA'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.
ASX:AAL vs HON, MMM: Return-on-Tangible-Equity Comparison
For the Conglomerates subindustry, ALFABS AUSTRALIA'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.
ALFABS AUSTRALIA Return-on-Tangible-Equity vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, ALFABS AUSTRALIA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ALFABS AUSTRALIA'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 (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 4.19% mean?
ALFABS AUSTRALIA (ASX:AAL) has a Return-on-Tangible-Equity of 4.19% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ALFABS AUSTRALIA and its competitors. This is 68% below median its historical median of 13.19. Over the past decade, ALFABS AUSTRALIA's Return-on-Tangible-Equity has ranged from 6.29 to 20.09. According to the industry distribution chart, ALFABS AUSTRALIA ranks #185 out of 549 companies in the Conglomerates industry, placing it in the top 33.7%.
Is ALFABS AUSTRALIA's Return-on-Tangible-Equity too high?
ALFABS AUSTRALIA's current Return-on-Tangible-Equity of 4.19% is 68% below median its 10-year median of 13.19. Over the past 10 years, this metric has ranged from a low of 6.29 to a high of 20.09. The Conglomerates industry median Return-on-Tangible-Equity is 7.44. ALFABS AUSTRALIA's value of 4.19% is 43.7% below this industry median. Based on the distribution chart, ALFABS AUSTRALIA ranks #185 out of 549 companies in the Conglomerates industry, which is above the industry midpoint. Overall, ALFABS AUSTRALIA has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does ALFABS AUSTRALIA's Return-on-Tangible-Equity compare to HON and MMM?
According to the Conglomerates industry distribution chart, ALFABS AUSTRALIA ranks #185 out of 549 companies for Return-on-Tangible-Equity. This puts ALFABS AUSTRALIA in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.44. ALFABS AUSTRALIA's value of 4.19% is 43.7% below this benchmark. Historically, ALFABS AUSTRALIA's own Return-on-Tangible-Equity has ranged from 6.29 to 20.09 over the past decade. While the company's 10-year median is 13.19 vs. the industry median of 7.44, ALFABS AUSTRALIA 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-Equity for a Conglomerates company?
The median Return-on-Tangible-Equity among Conglomerates companies is 7.44, based on 549 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. ALFABS AUSTRALIA's current Return-on-Tangible-Equity of 4.19% is 43.7% 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-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 ALFABS AUSTRALIA and its competitors. For the Conglomerates industry, the median Return-on-Tangible-Equity is 7.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALFABS AUSTRALIA's current Return-on-Tangible-Equity is 4.19%, which is 68% below median its own 10-year median of 13.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALFABS AUSTRALIA stock overvalued right now?
ALFABS AUSTRALIA (ASX:AAL) has a current Return-on-Tangible-Equity of 4.19%. The current Return-on-Tangible-Equity is 4.19%, which is 68% below median its 10-year median of 13.19 and 43.7% below the Conglomerates industry median of 7.44. ALFABS AUSTRALIA's overall GF Score™ is 20/100 with 5 warning signs to review. 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 ALFABS AUSTRALIA (ASX:AAL), the current Return-on-Tangible-Equity is 4.19% 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.
ALFABS AUSTRALIA Ltd is a company that provides a design-to-delivery solution for its clients across heavy steel fabrication, construction, and maintenance services, mining equipment, protective coatings, and transport. Its reportable segments are Mining, Engineering, and Other. The Mining segment is engaged in the manufacture, repair, overhaul, servicing, and hire of underground mining and ancillary equipment, together with sales of mining-related consumables and spare parts. The Engineering segment, which derives maximum revenue for the company, is involved in heavy steel fabrication, site installation works, and site-based maintenance; and the Other segment represents head office and ancillary businesses, including protective coatings and transport.
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