Simonds GroupASX:SIO 44 Return-on-Tangible-Equity is 643.52% as of Dec. 2025, which is 2899% above its 10-year median of 21.46. GuruFocus rates ASX:SIO with a GF Score™ of 44/100 and a GF Value™ of A$0.14 (Fairly Valued). The stock has 7 warning signs investors should review. Among 94 Homebuilding & Construction companies, Simonds Group ranks better than 95.74% 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. Simonds Group's annualized net income for the quarter that ended in Dec. 2025 was A$6.1 Mil. Simonds Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$0.9 Mil. Therefore, Simonds Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 643.52%.
The historical rank and industry rank for Simonds Group's Return-on-Tangible-Equity or its related term are showing as below:
ASX:SIO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -218.32 Med: 21.46 Max: 3352.2
Current: 35.36
During the past 11 years, Simonds Group's highest Return-on-Tangible-Equity was 3,352.20%. The lowest was -218.32%. And the median was 21.46%.
ASX:SIO's Return-on-Tangible-Equity is ranked better than 95.74% of 94
companies
in the Homebuilding & Construction industry
Industry Median: 8.285
vs ASX:SIO: 35.36
Simonds Group (ASX:SIO) 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.
Simonds Group Return-on-Tangible-Equity Related Terms
Simonds Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Simonds Group'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:SIO vs DHI, PHM, LEN: Return-on-Tangible-Equity Comparison
For the Residential Construction subindustry, Simonds Group'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.
Simonds Group Return-on-Tangible-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Simonds Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Simonds Group'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 643.52% mean?
Simonds Group (ASX:SIO) has a Return-on-Tangible-Equity of 643.52% 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 Simonds Group and its competitors. This is 2899% above median its historical median of 21.46. According to the industry distribution chart, Simonds Group ranks #4 out of 94 companies in the Homebuilding & Construction industry, placing it in the top 4.3%.
Is Simonds Group's Return-on-Tangible-Equity too high?
Simonds Group's current Return-on-Tangible-Equity of 643.52% is 2899% above median its 10-year median of 21.46. The Homebuilding & Construction industry median Return-on-Tangible-Equity is 8.29. Simonds Group's value of 643.52% is 7667.3% above this industry median. Based on the distribution chart, Simonds Group ranks #4 out of 94 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Simonds Group has a GF Score™ of 44/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Simonds Group's Return-on-Tangible-Equity compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Simonds Group ranks #4 out of 94 companies for Return-on-Tangible-Equity. This places Simonds Group in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.29. Simonds Group's value of 643.52% is 7667.3% above this benchmark. While the company's 10-year median is 21.46 vs. the industry median of 8.29, Simonds Group 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 Homebuilding & Construction company?
The median Return-on-Tangible-Equity among Homebuilding & Construction companies is 8.29, based on 94 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. Simonds Group's current Return-on-Tangible-Equity of 643.52% is 7667.3% 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 Simonds Group and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Equity is 8.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simonds Group's current Return-on-Tangible-Equity is 643.52%, which is 2899% above median its own 10-year median of 21.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simonds Group stock overvalued right now?
Based on GuruFocus' analysis, Simonds Group (ASX:SIO) is currently considered Fairly Valued. The stock's GF Value™ is A$0.14, compared to a current price of A$0.14 — trading 3.6% below its estimated fair value. The current Return-on-Tangible-Equity is 643.52%, which is 2899% above median its 10-year median of 21.46 and 7667.3% above the Homebuilding & Construction industry median of 8.29. Simonds Group's overall GF Score™ is 44/100 with 7 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 Simonds Group (ASX:SIO), the current Return-on-Tangible-Equity is 643.52% 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 Simonds Group (ASX:SIO) Overvalued in 2026?
Based on GuruFocus' analysis, Simonds Group stock appears to be undervalued.
The current stock price of A$0.14 is trading 3.6% below its estimated GF Value™ of A$0.14.
GuruFocus considers Simonds Group to be Fairly Valued.
Key valuation signals for ASX:SIO:
Return-on-Tangible-Equity: 643.52% (2899% above median its 10-year median of 21.46)
GF Value™: A$0.14 vs. price of A$0.14 (3.6% below fair value)
Industry Position: 7667.3% above the Homebuilding & Construction median (#4 of 94)
No single metric tells the full story. See the ASX:SIO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simonds Group Ltd is engaged in the design and construction of residential dwellings. Its operating segment includes Residential construction and Land development. The company generates maximum revenue from the Residential construction segment. Its Residential construction segment includes activities relating to contracts for residential home construction, speculative home building, and the building of display home inventory. Geographically, it operates only in Australia.
44GF Score
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