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. BWE Drilling's annualized net income for the quarter that ended in Dec. 2024 was A$-7.70 Mil. BWE Drilling's average shareholder tangible equity for the quarter that ended in Dec. 2024 was A$34.22 Mil. Therefore, BWE Drilling's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2024 was -22.50%.
The historical rank and industry rank for BWE Drilling's Return-on-Tangible-Equity or its related term are showing as below:
ASX:BWE's Return-on-Tangible-Equity is not ranked *
in the Construction industry.
Industry Median: 8.23 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
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.
BWE Drilling Return-on-Tangible-Equity Related Terms
BWE Drilling Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for BWE Drilling'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:BWE vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, BWE Drilling'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.
BWE Drilling Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, BWE Drilling's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where BWE Drilling'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. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -22.50% mean?
BWE Drilling (ASX:BWE) has a Return-on-Tangible-Equity of -22.50% as of Dec. 2024. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on BWE Drilling and its competitors.
Is BWE Drilling's Return-on-Tangible-Equity too high?
BWE Drilling's current Return-on-Tangible-Equity is -22.50%. Overall, BWE Drilling has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does BWE Drilling's Return-on-Tangible-Equity compare to PWR and FIX?
BWE Drilling's Return-on-Tangible-Equity of -22.50% can be compared against companies in the Construction industry. The industry median Return-on-Tangible-Equity is 8.23. 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.23, based on 1,703 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 BWE Drilling and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BWE Drilling's current Return-on-Tangible-Equity is -22.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BWE Drilling stock overvalued right now?
BWE Drilling (ASX:BWE) has a current Return-on-Tangible-Equity of -22.50%. The current Return-on-Tangible-Equity is -22.50%. BWE Drilling's overall GF Score™ is 30/100. 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 BWE Drilling (ASX:BWE), the current Return-on-Tangible-Equity is -22.50% as of Dec. 2024. 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.
BWE Drilling Ltd, formerly Dynamic Group Holdings Ltd is a supplier of drilling and blasting services to clients in the mining and construction sectors in Western Australia. It has extensive experience in areas of drilling and blasting, exploration and mine site resource definitions and grade control drilling, and water drilling, including deep artesian bores.
30GF Score
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