Banco Daycoval S.A.BSP:DAYC3 Return-on-Tangible-Equity is 9.74% as of Jun. 2016, which is 32% below its 10-year median of 14.32. The stock has 3 warning signs investors should review.
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. Banco Daycoval S.A.'s annualized net income for the quarter that ended in Jun. 2016 was R$276.91 Mil. Banco Daycoval S.A.'s average shareholder tangible equity for the quarter that ended in Jun. 2016 was R$2,842.84 Mil. Therefore, Banco Daycoval S.A.'s annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2016 was 9.74%.
The historical rank and industry rank for Banco Daycoval S.A.'s Return-on-Tangible-Equity or its related term are showing as below:
BSP:DAYC3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.09 Med: 14.32 Max: 21.08
Current: 14.44
During the past 10 years, Banco Daycoval S.A.'s highest Return-on-Tangible-Equity was 21.08%. The lowest was 10.09%. And the median was 14.32%.
BSP:DAYC3's Return-on-Tangible-Equity is not ranked
in the Banks industry.
Industry Median: 11.2
vs BSP:DAYC3: 14.44
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.
Banco Daycoval S.A. Return-on-Tangible-Equity Related Terms
Banco Daycoval S.A. Return-on-Tangible-Equity Historical Data
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The historical data trend for Banco Daycoval S.A.'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.
BSP:DAYC3 vs FISI, MBIN, WSBF: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Banco Daycoval S.A.'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.
Banco Daycoval S.A. Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Banco Daycoval S.A.'s Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Banco Daycoval S.A.'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 four times the quarterly (Jun. 2016) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 9.74% mean?
Banco Daycoval S.A. (BSP:DAYC3) has a Return-on-Tangible-Equity of 9.74% as of Jun. 2016. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Banco Daycoval S.A. and its competitors. This is 32% below median its historical median of 14.32. Over the past decade, Banco Daycoval S.A.'s Return-on-Tangible-Equity has ranged from 10.09 to 21.08.
Is Banco Daycoval S.A.'s Return-on-Tangible-Equity too high?
Banco Daycoval S.A.'s current Return-on-Tangible-Equity of 9.74% is 32% below median its 10-year median of 14.32. Over the past 10 years, this metric has ranged from a low of 10.09 to a high of 21.08. The Banks industry median Return-on-Tangible-Equity is 11.20. Banco Daycoval S.A.'s value of 9.74% is 13% below this industry median.
How does Banco Daycoval S.A.'s Return-on-Tangible-Equity compare to FISI and MBIN?
Banco Daycoval S.A.'s Return-on-Tangible-Equity of 9.74% can be compared against companies in the Banks industry. The industry median Return-on-Tangible-Equity is 11.20. Banco Daycoval S.A.'s value of 9.74% is 13% below this benchmark. Historically, Banco Daycoval S.A.'s own Return-on-Tangible-Equity has ranged from 10.09 to 21.08 over the past decade. While the company's 10-year median is 14.32 vs. the industry median of 11.20, Banco Daycoval S.A. has consistently been below 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.20, based on 1,525 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. Banco Daycoval S.A.'s current Return-on-Tangible-Equity of 9.74% is 13% below 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 Banco Daycoval S.A. and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Banco Daycoval S.A.'s current Return-on-Tangible-Equity is 9.74%, which is 32% below median its own 10-year median of 14.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banco Daycoval S.A. stock overvalued right now?
Banco Daycoval S.A. (BSP:DAYC3) has a current Return-on-Tangible-Equity of 9.74%. The current Return-on-Tangible-Equity is 9.74%, which is 32% below median its 10-year median of 14.32 and 13% below the Banks industry median of 11.20. 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 Banco Daycoval S.A. (BSP:DAYC3), the current Return-on-Tangible-Equity is 9.74% as of Jun. 2016. 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.
Banco Daycoval S.A. was founded in 1968. It is a is a commercial bank. The Company along with its subsidiaries is engaged in commercial, foreign exchange, investment and lending portfolios. It also provide services including management of assets, life insurance and pension plans. The Company operates in four business segments: financial segment; asset management segment; insurance and pension fund segment; andother segments. Financial segment - handles individual customer deposits and provides loan, overdraft, credit card, and wire transfer services, and performs treasury, finance and other core functions; Asset management segment - services to institutional investors and intermediaries by providing financial asset management through investment funds; and Insurance and pension fund segment - offers life insurance and open-end supplementary pension funds, by operating lump-sum and annuity plans, consisting of the plans' participants' contributions.
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