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. Karoon Energy's annualized net income for the quarter that ended in Dec. 2025 was A$164.0 Mil. Karoon Energy's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$1,537.9 Mil. Therefore, Karoon Energy's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 10.67%.
The historical rank and industry rank for Karoon Energy's Return-on-Tangible-Equity or its related term are showing as below:
ASX:KAR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -27.13 Med: -7.71 Max: 44.22
Current: 12.42
During the past 13 years, Karoon Energy's highest Return-on-Tangible-Equity was 44.22%. The lowest was -27.13%. And the median was -7.71%.
ASX:KAR's Return-on-Tangible-Equity is ranked better than 65.47% of 947
companies
in the Oil & Gas industry
Industry Median: 6.74
vs ASX:KAR: 12.42
Karoon Energy (ASX:KAR) 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.
Karoon Energy Return-on-Tangible-Equity Related Terms
Karoon Energy Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Karoon Energy'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:KAR vs COP, EOG, FANG: Return-on-Tangible-Equity Comparison
For the Oil & Gas E&P subindustry, Karoon Energy'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.
Karoon Energy Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Karoon Energy's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Karoon Energy'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 10.67% mean?
Karoon Energy (ASX:KAR) has a Return-on-Tangible-Equity of 10.67% 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 Karoon Energy and its competitors. According to the industry distribution chart, Karoon Energy ranks #327 out of 947 companies in the Oil & Gas industry, placing it in the top 34.5%.
Is Karoon Energy's Return-on-Tangible-Equity too high?
Karoon Energy's current Return-on-Tangible-Equity is 10.67%. The Oil & Gas industry median Return-on-Tangible-Equity is 6.74. Karoon Energy's value of 10.67% is 58.3% above this industry median. Based on the distribution chart, Karoon Energy ranks #327 out of 947 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Karoon Energy has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Karoon Energy's Return-on-Tangible-Equity compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Karoon Energy ranks #327 out of 947 companies for Return-on-Tangible-Equity. This puts Karoon Energy in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.74. Karoon Energy's value of 10.67% is 58.3% 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 an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.74, based on 947 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. Karoon Energy's current Return-on-Tangible-Equity of 10.67% is 58.3% 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 Karoon Energy and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karoon Energy's current Return-on-Tangible-Equity is 10.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karoon Energy stock overvalued right now?
Based on GuruFocus' analysis, Karoon Energy (ASX:KAR) is currently considered Modestly Undervalued. The stock's GF Value™ is A$1.64, compared to a current price of A$1.40 — trading 14.9% below its estimated fair value. The current Return-on-Tangible-Equity is 10.67% and 58.3% above the Oil & Gas industry median of 6.74. Karoon Energy's overall GF Score™ is 59/100 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 Karoon Energy (ASX:KAR), the current Return-on-Tangible-Equity is 10.67% 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 Karoon Energy (ASX:KAR) Overvalued in 2026?
Based on GuruFocus' analysis, Karoon Energy stock appears to be undervalued.
The current stock price of A$1.40 is trading 14.9% below its estimated GF Value™ of A$1.64.
GuruFocus considers Karoon Energy to be Modestly Undervalued.
Key valuation signals for ASX:KAR:
Return-on-Tangible-Equity: 10.67%
GF Value™: A$1.64 vs. price of A$1.40 (14.9% below fair value)
Industry Position: 58.3% above the Oil & Gas median (#327 of 947)
No single metric tells the full story. See the ASX:KAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karoon produces around 8 million barrels of oil equivalent annually from its wholly owned Baúna field in Brazil's offshore Santos Basin and around 3.5 mmboe from 30% owned Who Dat in the US Gulf. The company acquired Baúna from Petrobras in 2020 and steadily increased production via well interventions and new developments. Field life is approaching six years based on proven and probable reserves of 46 million barrels at the end of December 2025, though this excludes a further 140 million barrels in 2C contingent resources that have the potential to increase life further. We credit a life of more than 10 years, assuming conversion of some 2C contingent resources into the reserve category with drilling. There are also prospective untested targets within Karoon's permits.
59GF Score
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