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. EML Payments's annualized net income for the quarter that ended in Jun. 2025 was A$-125.3 Mil. EML Payments's average shareholder tangible equity for the quarter that ended in Jun. 2025 was A$48.7 Mil. Therefore, EML Payments's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2025 was -257.45%.
The historical rank and industry rank for EML Payments's Return-on-Tangible-Equity or its related term are showing as below:
ASX:EML'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -375.3 Med: -7.7 Max: 16.3
Current: -172.45
During the past 13 years, EML Payments's highest Return-on-Tangible-Equity was 16.30%. The lowest was -375.30%. And the median was -7.70%.
ASX:EML's Return-on-Tangible-Equity is ranked worse than 94.41% of 2470
companies
in the Software industry
Industry Median: 8.77
vs ASX:EML: -172.45
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.
EML Payments Return-on-Tangible-Equity Related Terms
EML Payments Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for EML Payments'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:EML vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, EML Payments'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.
EML Payments Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, EML Payments's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where EML Payments'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 (Jun. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -257.45% mean?
EML Payments (ASX:EML) has a Return-on-Tangible-Equity of -257.45% as of Jun. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on EML Payments and its competitors. According to the industry distribution chart, EML Payments ranks #2332 out of 2470 companies in the Software industry, placing it in the top 94.4%.
Is EML Payments' Return-on-Tangible-Equity too high?
EML Payments' current Return-on-Tangible-Equity is -257.45%. Based on the distribution chart, EML Payments ranks #2332 out of 2470 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, EML Payments has a GF Score™ of 28/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does EML Payments' Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, EML Payments ranks #2332 out of 2470 companies for Return-on-Tangible-Equity. This places EML Payments in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.77. 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 8.77, based on 2,470 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 EML Payments and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EML Payments's current Return-on-Tangible-Equity is -257.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EML Payments stock overvalued right now?
Based on GuruFocus' analysis, EML Payments (ASX:EML) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.80, compared to a current price of A$0.33 — trading 58.8% below its estimated fair value. The current Return-on-Tangible-Equity is -257.45%. EML Payments' overall GF Score™ is 28/100 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 EML Payments (ASX:EML), the current Return-on-Tangible-Equity is -257.45% as of Jun. 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 EML Payments (ASX:EML) Overvalued in 2026?
Based on GuruFocus' analysis, EML Payments stock appears to be undervalued.
The current stock price of A$0.33 is trading 58.8% below its estimated GF Value™ of A$0.80.
GuruFocus considers EML Payments to be Possible Value Trap.
Key valuation signals for ASX:EML:
Return-on-Tangible-Equity: -257.45%
GF Value™: A$0.80 vs. price of A$0.33 (58.8% below fair value)
No single metric tells the full story. See the ASX:EML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EML Payments is a financial technology company that operates across North America, Europe, and Australia. The firm builds the infrastructure for a customer to facilitate/accept payments via a prepaid card or in real-time. It makes money primarily via clipping a fee on payment transactions. It also earns fees from breakage, inactive accounts, cash establishments and interest on debit volumes. EML's payment solutions cater to a variety of applications including payouts, gifts, incentives, rewards, supplier payments, and more. The firm operates across three product offerings: gift and incentive cards, general purpose reloadable cards, and digital payments.
28GF Score
Get the complete analysis for ASX:EML
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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