Ava Risk GroupASX:AVA -2.70% Return-on-Tangible-Equity is -17.09% as of Dec. 2025. The stock has 3 warning signs investors should review. Among 1,009 Business Services companies, Ava Risk Group ranks worse than 95.24% 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. Ava Risk Group's annualized net income for the quarter that ended in Dec. 2025 was A$-2.36 Mil. Ava Risk Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$13.80 Mil. Therefore, Ava Risk Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -17.09%.
The historical rank and industry rank for Ava Risk Group's Return-on-Tangible-Equity or its related term are showing as below:
ASX:AVA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -53.39 Med: -24.4 Max: 160.88
Current: -52.49
During the past 11 years, Ava Risk Group's highest Return-on-Tangible-Equity was 160.88%. The lowest was -53.39%. And the median was -24.40%.
ASX:AVA's Return-on-Tangible-Equity is ranked worse than 95.24% of 1009
companies
in the Business Services industry
Industry Median: 10.56
vs ASX:AVA: -52.49
Ava Risk Group (ASX:AVA) 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.
Ava Risk Group Return-on-Tangible-Equity Related Terms
Ava Risk Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ava Risk 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:AVA vs ALLE, MSA, ADT: Return-on-Tangible-Equity Comparison
For the Security & Protection Services subindustry, Ava Risk 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.
Ava Risk Group Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, Ava Risk Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ava Risk 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 -17.09% mean?
Ava Risk Group (ASX:AVA) has a Return-on-Tangible-Equity of -17.09% 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 Ava Risk Group and its competitors. According to the industry distribution chart, Ava Risk Group ranks #961 out of 1009 companies in the Business Services industry, placing it in the top 95.2%.
Is Ava Risk Group's Return-on-Tangible-Equity too high?
Ava Risk Group's current Return-on-Tangible-Equity is -17.09%. Based on the distribution chart, Ava Risk Group ranks #961 out of 1009 companies in the Business Services industry, which is in the bottom quartile relative to peers.
How does Ava Risk Group's Return-on-Tangible-Equity compare to ALLE and MSA?
According to the Business Services industry distribution chart, Ava Risk Group ranks #961 out of 1009 companies for Return-on-Tangible-Equity. This places Ava Risk Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.56. 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.56, based on 1,009 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 Ava Risk Group and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ava Risk Group's current Return-on-Tangible-Equity is -17.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ava Risk Group stock overvalued right now?
Based on GuruFocus' analysis, Ava Risk Group (ASX:AVA) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.15, compared to a current price of A$0.04 — trading 76% below its estimated fair value. The current Return-on-Tangible-Equity is -17.09%. 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 Ava Risk Group (ASX:AVA), the current Return-on-Tangible-Equity is -17.09% 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.
Ava Risk Group Ltd specializes in risk management services and technologies. The Group operates in three segments: Detect, Access, and Illuminate. It offers a variety of integrated solutions, including intrusion detection and location services for perimeters, pipelines, and data networks, biometric and card access control, and secure international logistics for high-value valuables, precious metals, and currency. Its geographic presence includes Australia, Asia Pacific, India, the Middle East & North Africa, Europe, the United States, and other parts of the world.
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