Motorcycle HoldingsASX:MTO +5.35%83 Return-on-Tangible-Equity is 32.90% as of Dec. 2025, which is 35% below its 10-year median of 50.90. GuruFocus rates ASX:MTO with a GF Score™ of 83/100 and a GF Value™ of A$2.64 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,285 Vehicles & Parts companies, Motorcycle Holdings ranks better than 90.43% 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. Motorcycle Holdings's annualized net income for the quarter that ended in Dec. 2025 was A$22.4 Mil. Motorcycle Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$68.1 Mil. Therefore, Motorcycle Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 32.90%.
The historical rank and industry rank for Motorcycle Holdings's Return-on-Tangible-Equity or its related term are showing as below:
ASX:MTO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -40.03 Med: 50.9 Max: 84.1
Current: 29.96
During the past 10 years, Motorcycle Holdings's highest Return-on-Tangible-Equity was 84.10%. The lowest was -40.03%. And the median was 50.90%.
ASX:MTO's Return-on-Tangible-Equity is ranked better than 90.43% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.49
vs ASX:MTO: 29.96
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.
Motorcycle Holdings Return-on-Tangible-Equity Related Terms
Motorcycle Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Motorcycle 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:MTO vs CVNA, PAG, ALTB: Return-on-Tangible-Equity Comparison
For the Auto & Truck Dealerships subindustry, Motorcycle 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.
Motorcycle Holdings Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Motorcycle Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Motorcycle 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 32.90% mean?
Motorcycle Holdings (ASX:MTO) has a Return-on-Tangible-Equity of 32.90% 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 Motorcycle Holdings and its competitors. This is 35% below median its historical median of 50.90. According to the industry distribution chart, Motorcycle Holdings ranks #123 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 9.6%.
Is Motorcycle Holdings' Return-on-Tangible-Equity too high?
Motorcycle Holdings' current Return-on-Tangible-Equity of 32.90% is 35% below median its 10-year median of 50.90. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.49. Motorcycle Holdings' value of 32.90% is 339.3% above this industry median. Based on the distribution chart, Motorcycle Holdings ranks #123 out of 1285 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Motorcycle Holdings has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Motorcycle Holdings' Return-on-Tangible-Equity compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Motorcycle Holdings ranks #123 out of 1285 companies for Return-on-Tangible-Equity. This places Motorcycle Holdings in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.49. Motorcycle Holdings' value of 32.90% is 339.3% above this benchmark. While the company's 10-year median is 50.90 vs. the industry median of 7.49, Motorcycle 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.49, based on 1,285 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. Motorcycle Holdings's current Return-on-Tangible-Equity of 32.90% is 339.3% 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 Motorcycle Holdings and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorcycle Holdings's current Return-on-Tangible-Equity is 32.90%, which is 35% below median its own 10-year median of 50.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motorcycle Holdings stock overvalued right now?
Based on GuruFocus' analysis, Motorcycle Holdings (ASX:MTO) is currently considered Fairly Valued. The stock's GF Value™ is A$2.64, compared to a current price of A$2.56 — trading 3% below its estimated fair value. The current Return-on-Tangible-Equity is 32.90%, which is 35% below median its 10-year median of 50.90 and 339.3% above the Vehicles & Parts industry median of 7.49. Motorcycle Holdings' overall GF Score™ is 83/100 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 Motorcycle Holdings (ASX:MTO), the current Return-on-Tangible-Equity is 32.90% 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 Motorcycle Holdings (ASX:MTO) Overvalued in 2026?
Based on GuruFocus' analysis, Motorcycle Holdings stock appears to be undervalued.
The current stock price of A$2.56 is trading 3% below its estimated GF Value™ of A$2.64.
GuruFocus considers Motorcycle Holdings to be Fairly Valued.
Key valuation signals for ASX:MTO:
Return-on-Tangible-Equity: 32.90% (35% below median its 10-year median of 50.90)
GF Value™: A$2.64 vs. price of A$2.56 (3% below fair value)
Industry Position: 339.3% above the Vehicles & Parts median (#123 of 1285)
No single metric tells the full story. See the ASX:MTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Motorcycle Holdings Ltd is a motorcycle dealer in Australia. It has two reporting segments. First, Motorcycle Retailing, which offers a range of motorcycle products and services to the general public in Australia, including the sale of new and used motorcycles, parts, servicing, accessories, and MPPs. The segment also facilitates insurance and financing for motorcycle purchases through third-party sources. Second, the Motorcycle and Accessories Wholesaling segment, which imports and distributes a range of motorcycles, ATVs, scooters, and motorcycle parts and accessories to wholesale customers in Australia and New Zealand, including the Group's own retail outlets.
83GF Score
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