Echelon ResourcesASX:ECH -2.82%55 Return-on-Tangible-Equity is 8.98% as of Dec. 2025, which is 267% above its 10-year median of 2.45. GuruFocus rates ASX:ECH with a GF Score™ of 55/100 and a GF Value™ of A$0.50 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 948 Oil & Gas companies, Echelon Resources ranks worse than 56.96% 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. Echelon Resources's annualized net income for the quarter that ended in Dec. 2025 was A$12.1 Mil. Echelon Resources's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$135.2 Mil. Therefore, Echelon Resources's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 8.98%.
The historical rank and industry rank for Echelon Resources's Return-on-Tangible-Equity or its related term are showing as below:
ASX:ECH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -31.2 Med: 2.45 Max: 35.69
Current: 4.08
During the past 13 years, Echelon Resources's highest Return-on-Tangible-Equity was 35.69%. The lowest was -31.20%. And the median was 2.45%.
ASX:ECH's Return-on-Tangible-Equity is ranked worse than 56.96% of 948
companies
in the Oil & Gas industry
Industry Median: 6.71
vs ASX:ECH: 4.08
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.
Echelon Resources Return-on-Tangible-Equity Related Terms
Echelon Resources Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Echelon Resources'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:ECH vs COP, EOG, FANG: Return-on-Tangible-Equity Comparison
For the Oil & Gas E&P subindustry, Echelon Resources'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.
Echelon Resources Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Echelon Resources's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Echelon Resources'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 8.98% mean?
Echelon Resources (ASX:ECH) has a Return-on-Tangible-Equity of 8.98% 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 Echelon Resources and its competitors. This is 267% above median its historical median of 2.45. According to the industry distribution chart, Echelon Resources ranks #540 out of 948 companies in the Oil & Gas industry, placing it in the top 57%.
Is Echelon Resources' Return-on-Tangible-Equity too high?
Echelon Resources' current Return-on-Tangible-Equity of 8.98% is 267% above median its 10-year median of 2.45. The Oil & Gas industry median Return-on-Tangible-Equity is 6.71. Echelon Resources' value of 8.98% is 33.8% above this industry median. Based on the distribution chart, Echelon Resources ranks #540 out of 948 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Echelon Resources has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Echelon Resources' Return-on-Tangible-Equity compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Echelon Resources ranks #540 out of 948 companies for Return-on-Tangible-Equity. This places Echelon Resources in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.71. Echelon Resources' value of 8.98% is 33.8% above this benchmark. While the company's 10-year median is 2.45 vs. the industry median of 6.71, Echelon Resources 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 an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.71, based on 948 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. Echelon Resources's current Return-on-Tangible-Equity of 8.98% is 33.8% 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 Echelon Resources and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Echelon Resources's current Return-on-Tangible-Equity is 8.98%, which is 267% above median its own 10-year median of 2.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Echelon Resources stock overvalued right now?
Based on GuruFocus' analysis, Echelon Resources (ASX:ECH) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.50, compared to a current price of A$0.35 — trading 31% below its estimated fair value. The current Return-on-Tangible-Equity is 8.98%, which is 267% above median its 10-year median of 2.45 and 33.8% above the Oil & Gas industry median of 6.71. Echelon Resources' overall GF Score™ is 55/100 with 6 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 Echelon Resources (ASX:ECH), the current Return-on-Tangible-Equity is 8.98% 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 Echelon Resources (ASX:ECH) Overvalued in 2026?
Based on GuruFocus' analysis, Echelon Resources stock appears to be undervalued.
The current stock price of A$0.35 is trading 31% below its estimated GF Value™ of A$0.50.
GuruFocus considers Echelon Resources to be Possible Value Trap.
Key valuation signals for ASX:ECH:
Return-on-Tangible-Equity: 8.98% (267% above median its 10-year median of 2.45)
GF Value™: A$0.50 vs. price of A$0.35 (31% below fair value)
Industry Position: 33.8% above the Oil & Gas median (#540 of 948)
No single metric tells the full story. See the ASX:ECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Echelon Resources Ltd Formerly New Zealand Oil & Gas Ltd is an oil and gas exploration and production company with producing assets in New Zealand. It operates through Kupe Oil and Gas Field, Amadeus Basin Oil and Gas Exploration, and Cue Energy Resources Limited segments. The company generates maximum revenue from Cue Energy Resources Limited. It has a presence in Indonesia and Australia.
55GF Score
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