Adrad HoldingsASX:AHL +4.82%38 Return-on-Tangible-Equity is 5.84% as of Dec. 2025, which is 17% below its 10-year median of 7.01. GuruFocus rates ASX:AHL with a GF Score™ of 38/100 and a GF Value™ of A$0.79 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,973 Industrial Products companies, Adrad Holdings ranks worse than 52.54% 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. Adrad Holdings's annualized net income for the quarter that ended in Dec. 2025 was A$5.3 Mil. Adrad Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$89.9 Mil. Therefore, Adrad Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 5.84%.
The historical rank and industry rank for Adrad Holdings's Return-on-Tangible-Equity or its related term are showing as below:
ASX:AHL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.1 Med: 7.01 Max: 7.3
Current: 6.1
During the past 3 years, Adrad Holdings's highest Return-on-Tangible-Equity was 7.30%. The lowest was 6.10%. And the median was 7.01%.
ASX:AHL's Return-on-Tangible-Equity is ranked worse than 52.54% of 2973
companies
in the Industrial Products industry
Industry Median: 6.72
vs ASX:AHL: 6.10
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.
Adrad Holdings Return-on-Tangible-Equity Related Terms
Adrad Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Adrad 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.
ASX:AHL vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Adrad 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.
Adrad Holdings Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Adrad Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Adrad 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 (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 5.84% mean?
Adrad Holdings (ASX:AHL) has a Return-on-Tangible-Equity of 5.84% 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 Adrad Holdings and its competitors. This is 17% below median its historical median of 7.01. Over the past decade, Adrad Holdings' Return-on-Tangible-Equity has ranged from 6.10 to 7.30. According to the industry distribution chart, Adrad Holdings ranks #1562 out of 2973 companies in the Industrial Products industry, placing it in the top 52.5%.
Is Adrad Holdings' Return-on-Tangible-Equity too high?
Adrad Holdings' current Return-on-Tangible-Equity of 5.84% is 17% below median its 10-year median of 7.01. Over the past 10 years, this metric has ranged from a low of 6.10 to a high of 7.30. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Adrad Holdings' value of 5.84% is 13.1% below this industry median. Based on the distribution chart, Adrad Holdings ranks #1562 out of 2973 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Adrad Holdings has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Adrad Holdings' Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Adrad Holdings ranks #1562 out of 2973 companies for Return-on-Tangible-Equity. This places Adrad Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.72. Adrad Holdings' value of 5.84% is 13.1% below this benchmark. Historically, Adrad Holdings' own Return-on-Tangible-Equity has ranged from 6.10 to 7.30 over the past decade. While the company's 10-year median is 7.01 vs. the industry median of 6.72, Adrad Holdings 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,973 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. Adrad Holdings's current Return-on-Tangible-Equity of 5.84% is 13.1% 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 Adrad Holdings and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adrad Holdings's current Return-on-Tangible-Equity is 5.84%, which is 17% below median its own 10-year median of 7.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adrad Holdings stock overvalued right now?
Based on GuruFocus' analysis, Adrad Holdings (ASX:AHL) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.79, compared to a current price of A$1.31 — trading 65.2% above its estimated fair value. The current Return-on-Tangible-Equity is 5.84%, which is 17% below median its 10-year median of 7.01 and 13.1% below the Industrial Products industry median of 6.72. Adrad Holdings' overall GF Score™ is 38/100 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 Adrad Holdings (ASX:AHL), the current Return-on-Tangible-Equity is 5.84% 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.
Is Adrad Holdings (ASX:AHL) Overvalued in 2026?
Based on GuruFocus' analysis, Adrad Holdings stock appears to be overvalued.
The current stock price of A$1.31 is trading 65.2% above its estimated GF Value™ of A$0.79.
GuruFocus considers Adrad Holdings to be Significantly Overvalued.
Key valuation signals for ASX:AHL:
Return-on-Tangible-Equity: 5.84% (17% below median its 10-year median of 7.01)
GF Value™: A$0.79 vs. price of A$1.31 (65.2% above fair value)
Industry Position: 13.1% below the Industrial Products median (#1562 of 2973)
No single metric tells the full story. See the ASX:AHL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adrad Holdings Ltd designs and manufactures a wide variety of original equipment and aftermarket heat exchange products for both mobile and stationary applications. The company operates in two segments: Heat Transfer Solutions and Distribution. The Heat Transfer Solutions segment which designs and manufactures industrial cooling solutions for use in road transport and heavy vehicles, mining, power generation, data centres, and rail industries. The Distribution segment includes imports and distributes radiators, mobile and stationary heat exchange products, as well as a variety of automotive parts for the automotive and industrial markets. Geographically, the company derives key revenue from Australasia and the rest from Asia, the Middle East, North America, South America, Europe, & Africa.
38GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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