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Nortel InversoraBUE:NORT6 Return-on-Tangible-Equity is 73.37% as of Sep. 2017, which is 80% above its 10-year median of 40.69. The stock has 9 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. Nortel Inversora's annualized net income for the quarter that ended in Sep. 2017 was ARS4,480 Mil. Nortel Inversora's average shareholder tangible equity for the quarter that ended in Sep. 2017 was ARS6,106 Mil. Therefore, Nortel Inversora's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2017 was 73.37%.
The historical rank and industry rank for Nortel Inversora's Return-on-Tangible-Equity or its related term are showing as below:
BUE:NORT6'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.28 Med: 40.69 Max: 77.61
Current: 64.71
During the past 13 years, Nortel Inversora's highest Return-on-Tangible-Equity was 77.61%. The lowest was 17.28%. And the median was 40.69%.
BUE:NORT6's Return-on-Tangible-Equity is not ranked
in the Telecommunication Services industry.
Industry Median: 14.05
vs BUE:NORT6: 64.71
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.
Nortel Inversora Return-on-Tangible-Equity Related Terms
Nortel Inversora Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nortel Inversora'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.
BUE:NORT6 vs GLIBA, TDCAF: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Nortel Inversora'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.
Nortel Inversora Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Nortel Inversora's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nortel Inversora'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 (Sep. 2017) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 73.37% mean?
Nortel Inversora (BUE:NORT6) has a Return-on-Tangible-Equity of 73.37% as of Sep. 2017. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Nortel Inversora and its competitors. This is 80% above median its historical median of 40.69. Over the past decade, Nortel Inversora's Return-on-Tangible-Equity has ranged from 17.28 to 77.61.
Is Nortel Inversora's Return-on-Tangible-Equity too high?
Nortel Inversora's current Return-on-Tangible-Equity of 73.37% is 80% above median its 10-year median of 40.69. Over the past 10 years, this metric has ranged from a low of 17.28 to a high of 77.61. The Telecommunication Services industry median Return-on-Tangible-Equity is 14.05. Nortel Inversora's value of 73.37% is 422.2% above this industry median.
How does Nortel Inversora's Return-on-Tangible-Equity compare to GLIBA and TDCAF?
Nortel Inversora's Return-on-Tangible-Equity of 73.37% can be compared against companies in the Telecommunication Services industry. The industry median Return-on-Tangible-Equity is 14.05. Nortel Inversora's value of 73.37% is 422.2% above this benchmark. Historically, Nortel Inversora's own Return-on-Tangible-Equity has ranged from 17.28 to 77.61 over the past decade. While the company's 10-year median is 40.69 vs. the industry median of 14.05, Nortel Inversora 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 Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.05, based on 327 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. Nortel Inversora's current Return-on-Tangible-Equity of 73.37% is 422.2% 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 Nortel Inversora and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nortel Inversora's current Return-on-Tangible-Equity is 73.37%, which is 80% above median its own 10-year median of 40.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nortel Inversora stock overvalued right now?
Nortel Inversora (BUE:NORT6) has a current Return-on-Tangible-Equity of 73.37%. The current Return-on-Tangible-Equity is 73.37%, which is 80% above median its 10-year median of 40.69 and 422.2% above the Telecommunication Services industry median of 14.05. 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 Nortel Inversora (BUE:NORT6), the current Return-on-Tangible-Equity is 73.37% as of Sep. 2017. 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.
Nortel Inversora SA is a holding company. The company provides fixed-line public telecommunications services and basic telephone services. Nortel operates through the following segments: Fixed Services; Personal Mobile Services; and Nucleo Mobile Services. The Fixed Services division provides a local area, national long-distance and international communications, supplementary services, data transmission, internet services, IT solution outsourcing and sales of equipment. Personal Mobile Services and Nucleo Mobile Services division offerings include voice communications, high-speed mobile internet content and applications download, multimedia messaging services, among others; and sale of mobile communication devices.
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