AUB GroupASX:AUB -0.11%85 Return-on-Tangible-Equity is Negative Tangible Equity% as of Dec. 2025. GuruFocus rates ASX:AUB with a GF Score™ of 85/100 and a GF Value™ of A$49.60 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 500 Insurance companies, AUB Group ranks better than 99.8% 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. AUB Group's annualized net income for the quarter that ended in Dec. 2025 was A$71 Mil. AUB Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$-955 Mil. Therefore, AUB Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was Negative Tangible Equity%.
The historical rank and industry rank for AUB Group's Return-on-Tangible-Equity or its related term are showing as below:
ASX:AUB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 67.07 Med: 148.72 Max: 262.62
Current: Negative Tangible Equity
During the past 13 years, AUB Group's highest Return-on-Tangible-Equity was 262.62%. The lowest was 67.07%. And the median was 148.72%.
ASX:AUB's Return-on-Tangible-Equity is ranked better than 99.8% of 500
companies
in the Insurance industry
Industry Median: 13.53
vs ASX:AUB: Negative Tangible Equity
AUB Group (ASX:AUB) 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.
AUB Group Return-on-Tangible-Equity Related Terms
AUB Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for AUB Group'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:AUB vs MRSH, AON, AJG: Return-on-Tangible-Equity Comparison
For the Insurance Brokers subindustry, AUB Group'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.
AUB Group Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, AUB Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where AUB Group'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 Negative Tangible Equity% mean?
AUB Group (ASX:AUB) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 AUB Group and its competitors. Over the past decade, AUB Group's Return-on-Tangible-Equity has ranged from 67.07 to 262.62. According to the industry distribution chart, AUB Group ranks #1 out of 500 companies in the Insurance industry, placing it in the top 0.2%.
Is AUB Group's Return-on-Tangible-Equity too high?
AUB Group's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 67.07 to a high of 262.62. Based on the distribution chart, AUB Group ranks #1 out of 500 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, AUB Group has a GF Score™ of 85/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AUB Group's Return-on-Tangible-Equity compare to MRSH and AON?
According to the Insurance industry distribution chart, AUB Group ranks #1 out of 500 companies for Return-on-Tangible-Equity. This places AUB Group in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 13.53. Historically, AUB Group's own Return-on-Tangible-Equity has ranged from 67.07 to 262.62 over the past decade. 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 Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.53, based on 500 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 AUB Group and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AUB Group's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AUB Group stock overvalued right now?
Based on GuruFocus' analysis, AUB Group (ASX:AUB) is currently considered Possible Value Trap. The stock's GF Value™ is A$49.60, compared to a current price of A$28.07 — trading 43.4% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. AUB Group's overall GF Score™ is 85/100 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 AUB Group (ASX:AUB), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 AUB Group (ASX:AUB) Overvalued in 2026?
Based on GuruFocus' analysis, AUB Group stock appears to be undervalued.
The current stock price of A$28.07 is trading 43.4% below its estimated GF Value™ of A$49.60.
GuruFocus considers AUB Group to be Possible Value Trap.
No single metric tells the full story. See the ASX:AUB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AUB Group is the second-largest general insurance broker network in Australia and New Zealand. It has an ownership in brokerage businesses that collectively write over AUD 5 billion in premiums. It also owns equity stakes in 35 underwriting agencies. AUB derives revenue from commissions (from insurers, ultimately paid for by AUB's customers), based on gross written premium from agencies it owns, and a share of profits from associates and joint ventures. GWP is split among personal (3%), small to medium enterprises (70%), and corporates (27%).
85GF Score
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