Kip McGrath Education CentresASX:KME -4.00%61 Return-on-Tangible-Equity is 157.67% as of Dec. 2025, which is 15% above its 10-year median of 136.95. GuruFocus rates ASX:KME with a GF Score™ of 61/100 and a GF Value™ of A$0.55 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 247 Education companies, Kip McGrath Education Centres ranks worse than 96.76% 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. Kip McGrath Education Centres's annualized net income for the quarter that ended in Dec. 2025 was A$3.52 Mil. Kip McGrath Education Centres's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$2.23 Mil. Therefore, Kip McGrath Education Centres's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 157.67%.
The historical rank and industry rank for Kip McGrath Education Centres's Return-on-Tangible-Equity or its related term are showing as below:
ASX:KME'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -581.94 Med: 136.95 Max: 5830.3
Current: -196.45
During the past 13 years, Kip McGrath Education Centres's highest Return-on-Tangible-Equity was 5,830.30%. The lowest was -581.94%. And the median was 136.95%.
ASX:KME's Return-on-Tangible-Equity is ranked worse than 96.76% of 247
companies
in the Education industry
Industry Median: 11.4
vs ASX:KME: -196.45
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.
Kip McGrath Education Centres Return-on-Tangible-Equity Related Terms
Kip McGrath Education Centres Return-on-Tangible-Equity Historical Data
* 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:KME vs EDU, TAL, LAUR: Return-on-Tangible-Equity Comparison
For the Education & Training Services subindustry, Kip McGrath Education Centres'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.
Kip McGrath Education Centres Return-on-Tangible-Equity vs Education Industry
For the Education industry and Consumer Defensive sector, Kip McGrath Education Centres's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kip McGrath Education Centres'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 157.67% mean?
Kip McGrath Education Centres (ASX:KME) has a Return-on-Tangible-Equity of 157.67% 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 Kip McGrath Education Centres and its competitors. This is 15% above median its historical median of 136.95. According to the industry distribution chart, Kip McGrath Education Centres ranks #239 out of 247 companies in the Education industry, placing it in the top 96.8%.
Is Kip McGrath Education Centres' Return-on-Tangible-Equity too high?
Kip McGrath Education Centres' current Return-on-Tangible-Equity of 157.67% is 15% above median its 10-year median of 136.95. The Education industry median Return-on-Tangible-Equity is 11.40. Kip McGrath Education Centres' value of 157.67% is 1283.1% above this industry median. Based on the distribution chart, Kip McGrath Education Centres ranks #239 out of 247 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Kip McGrath Education Centres has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kip McGrath Education Centres' Return-on-Tangible-Equity compare to EDU and TAL?
According to the Education industry distribution chart, Kip McGrath Education Centres ranks #239 out of 247 companies for Return-on-Tangible-Equity. This places Kip McGrath Education Centres in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.40. Kip McGrath Education Centres' value of 157.67% is 1283.1% above this benchmark. While the company's 10-year median is 136.95 vs. the industry median of 11.40, Kip McGrath Education Centres 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 Education company?
The median Return-on-Tangible-Equity among Education companies is 11.40, based on 247 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. Kip McGrath Education Centres's current Return-on-Tangible-Equity of 157.67% is 1283.1% 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 Kip McGrath Education Centres and its competitors. For the Education industry, the median Return-on-Tangible-Equity is 11.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kip McGrath Education Centres's current Return-on-Tangible-Equity is 157.67%, which is 15% above median its own 10-year median of 136.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kip McGrath Education Centres stock overvalued right now?
Based on GuruFocus' analysis, Kip McGrath Education Centres (ASX:KME) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.55, compared to a current price of A$0.48 — trading 12.7% below its estimated fair value. The current Return-on-Tangible-Equity is 157.67%, which is 15% above median its 10-year median of 136.95 and 1283.1% above the Education industry median of 11.40. Kip McGrath Education Centres' overall GF Score™ is 61/100 with 4 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 Kip McGrath Education Centres (ASX:KME), the current Return-on-Tangible-Equity is 157.67% 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 Kip McGrath Education Centres (ASX:KME) Overvalued in 2026?
Based on GuruFocus' analysis, Kip McGrath Education Centres stock appears to be undervalued.
The current stock price of A$0.48 is trading 12.7% below its estimated GF Value™ of A$0.55.
GuruFocus considers Kip McGrath Education Centres to be Modestly Undervalued.
Key valuation signals for ASX:KME:
Return-on-Tangible-Equity: 157.67% (15% above median its 10-year median of 136.95)
GF Value™: A$0.55 vs. price of A$0.48 (12.7% below fair value)
Industry Position: 1283.1% above the Education median (#239 of 247)
No single metric tells the full story. See the ASX:KME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kip McGrath Education Centres Business Description
Kip McGrath Education Centres Ltd offers supplementary education to students through the franchise in Australia and overseas, in the United Kingdom and New Zealand. Its products are face-to-face tuition programs, direct at-home educational products, and online tertiary courses. Geographically, the company operates in Australasia, the United Kingdom and Europe, and Other overseas regions. It derives revenue from franchise fees, student lesson fees, sales of master territories and franchise centers, and direct sales, of which a majority of the revenue is derived from franchise fees.
61GF Score
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