New HopeASX:NHC +1.32%69 Return-on-Tangible-Equity is 4.25% as of Jan. 2026, which is 57% below its 10-year median of 9.83. GuruFocus rates ASX:NHC with a GF Score™ of 69/100 and a GF Value™ of A$4.06 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 177 Other Energy Sources companies, New Hope ranks better than 62.15% 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. New Hope's annualized net income for the quarter that ended in Jan. 2026 was A$109 Mil. New Hope's average shareholder tangible equity for the quarter that ended in Jan. 2026 was A$2,553 Mil. Therefore, New Hope's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2026 was 4.25%.
The historical rank and industry rank for New Hope's Return-on-Tangible-Equity or its related term are showing as below:
ASX:NHC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8.94 Med: 9.83 Max: 50.23
Current: 5.98
During the past 13 years, New Hope's highest Return-on-Tangible-Equity was 50.23%. The lowest was -8.94%. And the median was 9.83%.
ASX:NHC's Return-on-Tangible-Equity is ranked better than 62.15% of 177
companies
in the Other Energy Sources industry
Industry Median: 0.88
vs ASX:NHC: 5.98
New Hope (ASX:NHC) 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.
New Hope Return-on-Tangible-Equity Related Terms
New Hope Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for New Hope'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.
New Hope Return-on-Tangible-Equity Competitor Comparison
For the Thermal Coal subindustry, New Hope'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.
New Hope Return-on-Tangible-Equity vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, New Hope's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where New Hope'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 (Jan. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 4.25% mean?
New Hope (ASX:NHC) has a Return-on-Tangible-Equity of 4.25% as of Jan. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on New Hope and its competitors. This is 57% below median its historical median of 9.83. According to the industry distribution chart, New Hope ranks #67 out of 177 companies in the Other Energy Sources industry, placing it in the top 37.9%.
Is New Hope's Return-on-Tangible-Equity too high?
New Hope's current Return-on-Tangible-Equity of 4.25% is 57% below median its 10-year median of 9.83. The Other Energy Sources industry median Return-on-Tangible-Equity is 0.88. New Hope's value of 4.25% is 383% above this industry median. Based on the distribution chart, New Hope ranks #67 out of 177 companies in the Other Energy Sources industry, which is above the industry midpoint. Overall, New Hope has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does New Hope's Return-on-Tangible-Equity compare to competitors?
According to the Other Energy Sources industry distribution chart, New Hope ranks #67 out of 177 companies for Return-on-Tangible-Equity. This puts New Hope in the upper half of its industry. The industry median Return-on-Tangible-Equity is 0.88. New Hope's value of 4.25% is 383% above this benchmark. While the company's 10-year median is 9.83 vs. the industry median of 0.88, New Hope 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 Other Energy Sources company?
The median Return-on-Tangible-Equity among Other Energy Sources companies is 0.88, based on 177 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. New Hope's current Return-on-Tangible-Equity of 4.25% is 383% 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 New Hope and its competitors. For the Other Energy Sources industry, the median Return-on-Tangible-Equity is 0.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Hope's current Return-on-Tangible-Equity is 4.25%, which is 57% below median its own 10-year median of 9.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Hope stock overvalued right now?
Based on GuruFocus' analysis, New Hope (ASX:NHC) is currently considered Significantly Overvalued. The stock's GF Value™ is A$4.06, compared to a current price of A$5.37 — trading 32.3% above its estimated fair value. The current Return-on-Tangible-Equity is 4.25%, which is 57% below median its 10-year median of 9.83 and 383% above the Other Energy Sources industry median of 0.88. New Hope's overall GF Score™ is 69/100 with 6 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 New Hope (ASX:NHC), the current Return-on-Tangible-Equity is 4.25% as of Jan. 2026. 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 New Hope (ASX:NHC) Overvalued in 2026?
Based on GuruFocus' analysis, New Hope stock appears to be overvalued.
The current stock price of A$5.37 is trading 32.3% above its estimated GF Value™ of A$4.06.
GuruFocus considers New Hope to be Significantly Overvalued.
Key valuation signals for ASX:NHC:
Return-on-Tangible-Equity: 4.25% (57% below median its 10-year median of 9.83)
GF Value™: A$4.06 vs. price of A$5.37 (32.3% above fair value)
Industry Position: 383% above the Other Energy Sources median (#67 of 177)
No single metric tells the full story. See the ASX:NHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Hope Corporation is an Australian thermal coal miner. It has two operating mines: the 100%-owned New Acland coal mine in Queensland and its 80%-owned Bengalla coal mine in New South Wales. The company should sell around 13 million metric tons of thermal coal annually from fiscal 2028, up from around 10.5 million in fiscal 2025, driven by the construction and ramp up of New Acland Stage 3. The vast majority of New Hope's production is sold into seaborne thermal coal export markets. Reserves at New Acland and Bengalla are sufficient to support multidecade mine lives. New Hope also has significant undeveloped coal resources in Queensland, as well as a 23% holding in the Malabar-Maxwell metallurgical coal mine, which began production in 2023.
69GF Score
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