Energy ActionASX:EAX 42 Return-on-Tangible-Equity is 31.10% as of Dec. 2025. GuruFocus rates ASX:EAX with a GF Score™ of 42/100 and a GF Value™ of A$0.24 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,010 Business Services companies, Energy Action ranks better than 85.64% 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. Energy Action's annualized net income for the quarter that ended in Dec. 2025 was A$1.19 Mil. Energy Action's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$3.82 Mil. Therefore, Energy Action's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 31.10%.
The historical rank and industry rank for Energy Action's Return-on-Tangible-Equity or its related term are showing as below:
ASX:EAX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1087.5 Med: -73.19 Max: 140.05
Current: 51.67
During the past 13 years, Energy Action's highest Return-on-Tangible-Equity was 140.05%. The lowest was -1,087.50%. And the median was -73.19%.
ASX:EAX's Return-on-Tangible-Equity is ranked better than 85.64% of 1010
companies
in the Business Services industry
Industry Median: 10.57
vs ASX:EAX: 51.67
Energy Action (ASX:EAX) 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.
Energy Action Return-on-Tangible-Equity Related Terms
Energy Action Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Energy Action'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:EAX vs CTAS, CPRT, ULS: Return-on-Tangible-Equity Comparison
For the Specialty Business Services subindustry, Energy Action'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.
Energy Action Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, Energy Action's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Energy Action'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 31.10% mean?
Energy Action (ASX:EAX) has a Return-on-Tangible-Equity of 31.10% 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 Energy Action and its competitors. According to the industry distribution chart, Energy Action ranks #145 out of 1010 companies in the Business Services industry, placing it in the top 14.4%.
Is Energy Action's Return-on-Tangible-Equity too high?
Energy Action's current Return-on-Tangible-Equity is 31.10%. The Business Services industry median Return-on-Tangible-Equity is 10.57. Energy Action's value of 31.10% is 194.2% above this industry median. Based on the distribution chart, Energy Action ranks #145 out of 1010 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Energy Action has a GF Score™ of 42/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Energy Action's Return-on-Tangible-Equity compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Energy Action ranks #145 out of 1010 companies for Return-on-Tangible-Equity. This places Energy Action in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.57. Energy Action's value of 31.10% is 194.2% above this benchmark. 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 10.57, based on 1,010 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. Energy Action's current Return-on-Tangible-Equity of 31.10% is 194.2% 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 Energy Action and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Action's current Return-on-Tangible-Equity is 31.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Energy Action stock overvalued right now?
Based on GuruFocus' analysis, Energy Action (ASX:EAX) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.24, compared to a current price of A$0.40 — trading 66.7% above its estimated fair value. The current Return-on-Tangible-Equity is 31.10% and 194.2% above the Business Services industry median of 10.57. Energy Action's overall GF Score™ is 42/100 with 2 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 Energy Action (ASX:EAX), the current Return-on-Tangible-Equity is 31.10% 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 Energy Action (ASX:EAX) Overvalued in 2026?
Based on GuruFocus' analysis, Energy Action stock appears to be overvalued.
The current stock price of A$0.40 is trading 66.7% above its estimated GF Value™ of A$0.24.
GuruFocus considers Energy Action to be Significantly Overvalued.
Key valuation signals for ASX:EAX:
Return-on-Tangible-Equity: 31.10%
GF Value™: A$0.24 vs. price of A$0.40 (66.7% above fair value)
Industry Position: 194.2% above the Business Services median (#145 of 1010)
No single metric tells the full story. See the ASX:EAX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Energy Action Ltd is engaged in providing integrated energy management services to a diverse base of commercial, industrial, and small and medium-sized business customers. It offers electricity and gas procurement services in Australia. The company's core services include Procurement, Energy Managed Services, Retail Services, and Other. The company has one operating segment, which provides electricity and gas procurement services, energy management, and retail billing services in Australia. The company provides various services such as Energy Buying, Energy Management, and Embedded Networks. It derives a majority of its revenues from Energy procurement.
42GF Score
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