ARBASX:ARB 93 Return-on-Tangible-Equity is 12.38% as of Dec. 2025, which is 36% below its 10-year median of 19.32. GuruFocus rates ASX:ARB with a GF Score™ of 93/100 and a GF Value™ of A$35.39 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,285 Vehicles & Parts companies, ARB ranks better than 68.48% 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. ARB's annualized net income for the quarter that ended in Dec. 2025 was A$84.3 Mil. ARB's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$681.3 Mil. Therefore, ARB's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 12.38%.
The historical rank and industry rank for ARB's Return-on-Tangible-Equity or its related term are showing as below:
ASX:ARB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.09 Med: 19.32 Max: 29.73
Current: 13.09
During the past 13 years, ARB's highest Return-on-Tangible-Equity was 29.73%. The lowest was 13.09%. And the median was 19.32%.
ASX:ARB's Return-on-Tangible-Equity is ranked better than 68.48% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.49
vs ASX:ARB: 13.09
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.
ARB Return-on-Tangible-Equity Related Terms
ARB Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ARB'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:ARB vs ORLY, AZO: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, ARB'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.
ARB Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, ARB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ARB'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 12.38% mean?
ARB (ASX:ARB) has a Return-on-Tangible-Equity of 12.38% 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 ARB and its competitors. This is 36% below median its historical median of 19.32. Over the past decade, ARB's Return-on-Tangible-Equity has ranged from 13.09 to 29.73. According to the industry distribution chart, ARB ranks #405 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 31.5%.
Is ARB's Return-on-Tangible-Equity too high?
ARB's current Return-on-Tangible-Equity of 12.38% is 36% below median its 10-year median of 19.32. Over the past 10 years, this metric has ranged from a low of 13.09 to a high of 29.73. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.49. ARB's value of 12.38% is 65.3% above this industry median. Based on the distribution chart, ARB ranks #405 out of 1285 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, ARB has a GF Score™ of 93/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ARB's Return-on-Tangible-Equity compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, ARB ranks #405 out of 1285 companies for Return-on-Tangible-Equity. This puts ARB in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.49. ARB's value of 12.38% is 65.3% above this benchmark. Historically, ARB's own Return-on-Tangible-Equity has ranged from 13.09 to 29.73 over the past decade. While the company's 10-year median is 19.32 vs. the industry median of 7.49, ARB 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-Equity for a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.49, based on 1,285 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. ARB's current Return-on-Tangible-Equity of 12.38% is 65.3% 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-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 ARB and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARB's current Return-on-Tangible-Equity is 12.38%, which is 36% below median its own 10-year median of 19.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARB stock overvalued right now?
Based on GuruFocus' analysis, ARB (ASX:ARB) is currently considered Significantly Undervalued. The stock's GF Value™ is A$35.39, compared to a current price of A$18.92 — trading 46.5% below its estimated fair value. The current Return-on-Tangible-Equity is 12.38%, which is 36% below median its 10-year median of 19.32 and 65.3% above the Vehicles & Parts industry median of 7.49. ARB's overall GF Score™ is 93/100 with 3 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 ARB (ASX:ARB), the current Return-on-Tangible-Equity is 12.38% 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 ARB (ASX:ARB) Overvalued in 2026?
Based on GuruFocus' analysis, ARB stock appears to be undervalued.
The current stock price of A$18.92 is trading 46.5% below its estimated GF Value™ of A$35.39.
GuruFocus considers ARB to be Significantly Undervalued.
Key valuation signals for ASX:ARB:
Return-on-Tangible-Equity: 12.38% (36% below median its 10-year median of 19.32)
GF Value™: A$35.39 vs. price of A$18.92 (46.5% below fair value)
Industry Position: 65.3% above the Vehicles & Parts median (#405 of 1285)
No single metric tells the full story. See the ASX:ARB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ARB designs, manufactures, and distributes four-wheel-drive and light commercial vehicle accessories. The firm has carved a niche with aftermarket accessories including bull bars, suspension systems, differentials, and lighting. ARB operates manufacturing plants in Australia and Thailand and sales and distribution centers across several countries. The Australian division, which generates the vast majority of group earnings, distributes through the ARB store network, ARB stockists, new-vehicle dealers, and fleet operators.
93GF Score
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