Lovisa HoldingsASX:LOV -1.65%97 Return-on-Tangible-Equity is 132.26% as of Dec. 2025, which is 22% above its 10-year median of 108.51. GuruFocus rates ASX:LOV with a GF Score™ of 97/100 and a GF Value™ of A$39.45 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,055 Retail - Cyclical companies, Lovisa Holdings ranks better than 92.42% 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. Lovisa Holdings's annualized net income for the quarter that ended in Dec. 2025 was A$116.8 Mil. Lovisa Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$88.3 Mil. Therefore, Lovisa Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 132.26%.
The historical rank and industry rank for Lovisa Holdings's Return-on-Tangible-Equity or its related term are showing as below:
ASX:LOV'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 21.64 Med: 108.51 Max: 231.56
Current: 95.35
During the past 11 years, Lovisa Holdings's highest Return-on-Tangible-Equity was 231.56%. The lowest was 21.64%. And the median was 108.51%.
ASX:LOV's Return-on-Tangible-Equity is ranked better than 92.42% of 1055
companies
in the Retail - Cyclical industry
Industry Median: 8.28
vs ASX:LOV: 95.35
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.
Lovisa Holdings Return-on-Tangible-Equity Related Terms
Lovisa Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lovisa Holdings'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:LOV vs CASY, WSM, DKS: Return-on-Tangible-Equity Comparison
For the Specialty Retail subindustry, Lovisa Holdings'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.
Lovisa Holdings Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lovisa Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lovisa Holdings'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 132.26% mean?
Lovisa Holdings (ASX:LOV) has a Return-on-Tangible-Equity of 132.26% 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 Lovisa Holdings and its competitors. This is 22% above median its historical median of 108.51. Over the past decade, Lovisa Holdings' Return-on-Tangible-Equity has ranged from 21.64 to 231.56. According to the industry distribution chart, Lovisa Holdings ranks #80 out of 1055 companies in the Retail - Cyclical industry, placing it in the top 7.6%.
Is Lovisa Holdings' Return-on-Tangible-Equity too high?
Lovisa Holdings' current Return-on-Tangible-Equity of 132.26% is 22% above median its 10-year median of 108.51. Over the past 10 years, this metric has ranged from a low of 21.64 to a high of 231.56. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.28. Lovisa Holdings' value of 132.26% is 1497.3% above this industry median. Based on the distribution chart, Lovisa Holdings ranks #80 out of 1055 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Lovisa Holdings has a GF Score™ of 97/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lovisa Holdings' Return-on-Tangible-Equity compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Lovisa Holdings ranks #80 out of 1055 companies for Return-on-Tangible-Equity. This places Lovisa Holdings in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.28. Lovisa Holdings' value of 132.26% is 1497.3% above this benchmark. Historically, Lovisa Holdings' own Return-on-Tangible-Equity has ranged from 21.64 to 231.56 over the past decade. While the company's 10-year median is 108.51 vs. the industry median of 8.28, Lovisa Holdings 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 a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.28, based on 1,055 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. Lovisa Holdings's current Return-on-Tangible-Equity of 132.26% is 1497.3% 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 Lovisa Holdings and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lovisa Holdings's current Return-on-Tangible-Equity is 132.26%, which is 22% above median its own 10-year median of 108.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lovisa Holdings stock overvalued right now?
Based on GuruFocus' analysis, Lovisa Holdings (ASX:LOV) is currently considered Significantly Undervalued. The stock's GF Value™ is A$39.45, compared to a current price of A$22.11 — trading 44% below its estimated fair value. The current Return-on-Tangible-Equity is 132.26%, which is 22% above median its 10-year median of 108.51 and 1497.3% above the Retail - Cyclical industry median of 8.28. Lovisa Holdings' overall GF Score™ is 97/100 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 Lovisa Holdings (ASX:LOV), the current Return-on-Tangible-Equity is 132.26% 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 Lovisa Holdings (ASX:LOV) Overvalued in 2026?
Based on GuruFocus' analysis, Lovisa Holdings stock appears to be undervalued.
The current stock price of A$22.11 is trading 44% below its estimated GF Value™ of A$39.45.
GuruFocus considers Lovisa Holdings to be Significantly Undervalued.
Key valuation signals for ASX:LOV:
Return-on-Tangible-Equity: 132.26% (22% above median its 10-year median of 108.51)
GF Value™: A$39.45 vs. price of A$22.11 (44% below fair value)
Industry Position: 1497.3% above the Retail - Cyclical median (#80 of 1055)
No single metric tells the full story. See the ASX:LOV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lovisa is a global fast-fashion retailer specializing in jewelry. A vertically integrated supply chain allows it to develop, source, and merchandise its exclusive products. Its target customer base is millennials seeking affordable and fashionable jewelry or receiving it as gifts. Lovisa's global network of own-operated and franchised stores span across more than 30 countries. Lovisa's sales growth record is largely underpinned by global store rollouts. The store format and offering is standardized globally, with stores typically in shopping centers and malls with relatively high foot traffic and sales per square meter. Lovisa also operates online stores and in-store piercing services in all its jurisdictions.
97GF Score
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