Direcional EngenhariaBSP:DIRR3 -0.36%90 Return-on-Tangible-Equity is 42.83% as of Mar. 2026, which is 307% above its 10-year median of 10.53. GuruFocus rates BSP:DIRR3 with a GF Score™ of 90/100 and a GF Value™ of R$15.86 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,716 Real Estate companies, Direcional Engenharia ranks better than 95.45% 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. Direcional Engenharia's annualized net income for the quarter that ended in Mar. 2026 was R$853 Mil. Direcional Engenharia's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$1,991 Mil. Therefore, Direcional Engenharia's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 42.83%.
The historical rank and industry rank for Direcional Engenharia's Return-on-Tangible-Equity or its related term are showing as below:
BSP:DIRR3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -9.45 Med: 10.53 Max: 40.85
Current: 39.19
During the past 13 years, Direcional Engenharia's highest Return-on-Tangible-Equity was 40.85%. The lowest was -9.45%. And the median was 10.53%.
BSP:DIRR3's Return-on-Tangible-Equity is ranked better than 95.45% of 1716
companies
in the Real Estate industry
Industry Median: 4.195
vs BSP:DIRR3: 39.19
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.
Direcional Engenharia Return-on-Tangible-Equity Related Terms
Direcional Engenharia Return-on-Tangible-Equity Historical Data
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The historical data trend for Direcional Engenharia'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.
For the Real Estate - Development subindustry, Direcional Engenharia'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.
Direcional Engenharia Return-on-Tangible-Equity vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Direcional Engenharia's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Direcional Engenharia'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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 42.83% mean?
Direcional Engenharia (BSP:DIRR3) has a Return-on-Tangible-Equity of 42.83% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Direcional Engenharia and its competitors. This is 307% above median its historical median of 10.53. According to the industry distribution chart, Direcional Engenharia ranks #78 out of 1716 companies in the Real Estate industry, placing it in the top 4.5%.
Is Direcional Engenharia's Return-on-Tangible-Equity too high?
Direcional Engenharia's current Return-on-Tangible-Equity of 42.83% is 307% above median its 10-year median of 10.53. The Real Estate industry median Return-on-Tangible-Equity is 4.20. Direcional Engenharia's value of 42.83% is 921% above this industry median. Based on the distribution chart, Direcional Engenharia ranks #78 out of 1716 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Direcional Engenharia has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Direcional Engenharia's Return-on-Tangible-Equity compare to competitors?
According to the Real Estate industry distribution chart, Direcional Engenharia ranks #78 out of 1716 companies for Return-on-Tangible-Equity. This places Direcional Engenharia in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.20. Direcional Engenharia's value of 42.83% is 921% above this benchmark. While the company's 10-year median is 10.53 vs. the industry median of 4.20, Direcional Engenharia 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 Real Estate company?
The median Return-on-Tangible-Equity among Real Estate companies is 4.20, based on 1,716 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. Direcional Engenharia's current Return-on-Tangible-Equity of 42.83% is 921% 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 Direcional Engenharia and its competitors. For the Real Estate industry, the median Return-on-Tangible-Equity is 4.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Direcional Engenharia's current Return-on-Tangible-Equity is 42.83%, which is 307% above median its own 10-year median of 10.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Direcional Engenharia stock overvalued right now?
Based on GuruFocus' analysis, Direcional Engenharia (BSP:DIRR3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$15.86, compared to a current price of R$13.87 — trading 12.5% below its estimated fair value. The current Return-on-Tangible-Equity is 42.83%, which is 307% above median its 10-year median of 10.53 and 921% above the Real Estate industry median of 4.20. Direcional Engenharia's overall GF Score™ is 90/100 with 4 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 Direcional Engenharia (BSP:DIRR3), the current Return-on-Tangible-Equity is 42.83% as of Mar. 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 Direcional Engenharia (BSP:DIRR3) Overvalued in 2026?
Based on GuruFocus' analysis, Direcional Engenharia stock appears to be undervalued.
The current stock price of R$13.87 is trading 12.5% below its estimated GF Value™ of R$15.86.
GuruFocus considers Direcional Engenharia to be Modestly Undervalued.
Key valuation signals for BSP:DIRR3:
Return-on-Tangible-Equity: 42.83% (307% above median its 10-year median of 10.53)
GF Value™: R$15.86 vs. price of R$13.87 (12.5% below fair value)
Industry Position: 921% above the Real Estate median (#78 of 1716)
No single metric tells the full story. See the BSP:DIRR3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Direcional Engenharia SA is a real estate development and construction company. It focuses on the development of large-scale residential housing targeting the low-income segment, particularly in the North and Mid-West regions of Brazil. Geographically, the business presence of the firm are seen in the states of Rio de Janeiro, Sao Paulo, the Rio Grande do Sul, Minas Gerais, Para, and Amazonas, among others.
90GF Score
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