TamawoodASX:TWD -0.39%76 Return-on-Tangible-Equity is 32.24% as of Dec. 2025, which is 2% above its 10-year median of 31.71. GuruFocus rates ASX:TWD with a GF Score™ of 76/100 and a GF Value™ of A$3.34 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 94 Homebuilding & Construction companies, Tamawood ranks better than 88.3% 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. Tamawood's annualized net income for the quarter that ended in Dec. 2025 was A$9.7 Mil. Tamawood's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$30.2 Mil. Therefore, Tamawood's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 32.24%.
The historical rank and industry rank for Tamawood's Return-on-Tangible-Equity or its related term are showing as below:
ASX:TWD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.77 Med: 31.71 Max: 86.21
Current: 24.97
During the past 13 years, Tamawood's highest Return-on-Tangible-Equity was 86.21%. The lowest was 7.77%. And the median was 31.71%.
ASX:TWD's Return-on-Tangible-Equity is ranked better than 88.3% of 94
companies
in the Homebuilding & Construction industry
Industry Median: 8.285
vs ASX:TWD: 24.97
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.
Tamawood Return-on-Tangible-Equity Related Terms
Tamawood Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Tamawood'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:TWD vs DHI, PHM, LEN: Return-on-Tangible-Equity Comparison
For the Residential Construction subindustry, Tamawood'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.
Tamawood Return-on-Tangible-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Tamawood's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Tamawood'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 32.24% mean?
Tamawood (ASX:TWD) has a Return-on-Tangible-Equity of 32.24% 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 Tamawood and its competitors. This is near median its historical median of 31.71. Over the past decade, Tamawood's Return-on-Tangible-Equity has ranged from 7.77 to 86.21. According to the industry distribution chart, Tamawood ranks #11 out of 94 companies in the Homebuilding & Construction industry, placing it in the top 11.7%.
Is Tamawood's Return-on-Tangible-Equity too high?
Tamawood's current Return-on-Tangible-Equity of 32.24% is near median its 10-year median of 31.71. Over the past 10 years, this metric has ranged from a low of 7.77 to a high of 86.21. The Homebuilding & Construction industry median Return-on-Tangible-Equity is 8.29. Tamawood's value of 32.24% is 289.1% above this industry median. Based on the distribution chart, Tamawood ranks #11 out of 94 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Tamawood has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tamawood's Return-on-Tangible-Equity compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Tamawood ranks #11 out of 94 companies for Return-on-Tangible-Equity. This places Tamawood in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.29. Tamawood's value of 32.24% is 289.1% above this benchmark. Historically, Tamawood's own Return-on-Tangible-Equity has ranged from 7.77 to 86.21 over the past decade. While the company's 10-year median is 31.71 vs. the industry median of 8.29, Tamawood 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. Tamawood's current Return-on-Tangible-Equity of 32.24% is 289.1% 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 Tamawood 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. Tamawood's current Return-on-Tangible-Equity is 32.24%, which is near median its own 10-year median of 31.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tamawood stock overvalued right now?
Based on GuruFocus' analysis, Tamawood (ASX:TWD) is currently considered Modestly Undervalued. The stock's GF Value™ is A$3.34, compared to a current price of A$2.55 — trading 23.7% below its estimated fair value. The current Return-on-Tangible-Equity is 32.24%, which is near median its 10-year median of 31.71 and 289.1% above the Homebuilding & Construction industry median of 8.29. Tamawood's overall GF Score™ is 76/100 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 Tamawood (ASX:TWD), the current Return-on-Tangible-Equity is 32.24% 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 Tamawood (ASX:TWD) Overvalued in 2026?
Based on GuruFocus' analysis, Tamawood stock appears to be undervalued.
The current stock price of A$2.55 is trading 23.7% below its estimated GF Value™ of A$3.34.
GuruFocus considers Tamawood to be Modestly Undervalued.
Key valuation signals for ASX:TWD:
Return-on-Tangible-Equity: 32.24% (near median its 10-year median of 31.71)
GF Value™: A$3.34 vs. price of A$2.55 (23.7% below fair value)
Industry Position: 289.1% above the Homebuilding & Construction median (#11 of 94)
No single metric tells the full story. See the ASX:TWD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tamawood Ltd designs and constructs residential buildings in Australia. It is engaged in home design, project management services, and associated activities including home contract construction activities in selected markets. It is also engaged in the construction of "Ready-to-Occupy" homes. The company generates its main revenue from construction contracts.
76GF Score
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