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.
Downing Renewables & Infrastructure Trust Return-on-Tangible-Equity Related Terms
Downing Renewables & Infrastructure Trust Return-on-Tangible-Equity Historical Data
* 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.
CHIX:DOREL vs CEG: Return-on-Tangible-Equity Comparison
For the Utilities - Renewable subindustry, Downing Renewables & Infrastructure Trust'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.
Downing Renewables & Infrastructure Trust Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Downing Renewables & Infrastructure Trust's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Downing Renewables & Infrastructure Trust'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 (Jun. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -5.12% mean?
Downing Renewables & Infrastructure Trust (CHIX:DOREL) has a Return-on-Tangible-Equity of -5.12% as of Jun. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Downing Renewables & Infrastructure Trust and its competitors.
Is Downing Renewables & Infrastructure Trust's Return-on-Tangible-Equity too high?
Downing Renewables & Infrastructure Trust's current Return-on-Tangible-Equity is -5.12%. Overall, Downing Renewables & Infrastructure Trust has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Downing Renewables & Infrastructure Trust's Return-on-Tangible-Equity compare to CEG?
Downing Renewables & Infrastructure Trust's Return-on-Tangible-Equity of -5.12% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Return-on-Tangible-Equity is 4.70. 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 an Utilities - Independent Power Producers company?
The median Return-on-Tangible-Equity among Utilities - Independent Power Producers companies is 4.70, based on 426 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. 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 Downing Renewables & Infrastructure Trust and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Downing Renewables & Infrastructure Trust's current Return-on-Tangible-Equity is -5.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Downing Renewables & Infrastructure Trust stock overvalued right now?
Downing Renewables & Infrastructure Trust (CHIX:DOREL) has a current Return-on-Tangible-Equity of -5.12%. The stock's GF Value™ is £0.19, compared to a current price of £0.82 — trading 331.6% above its estimated fair value. The current Return-on-Tangible-Equity is -5.12%. Downing Renewables & Infrastructure Trust's overall GF Score™ is 20/100 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 Downing Renewables & Infrastructure Trust (CHIX:DOREL), the current Return-on-Tangible-Equity is -5.12% as of Jun. 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 Downing Renewables & Infrastructure Trust (CHIX:DOREL) Overvalued in 2026?
Based on GuruFocus' analysis, Downing Renewables & Infrastructure Trust stock appears to be overvalued.
The current stock price of £0.82 is trading 331.6% above its estimated GF Value™ of £0.19.
Key valuation signals for CHIX:DOREL:
Return-on-Tangible-Equity: -5.12%
GF Value™: £0.19 vs. price of £0.82 (331.6% above fair value)
No single metric tells the full story. See the CHIX:DOREL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Downing Renewables & Infrastructure Trust Business Description
Downing Renewables & Infrastructure Trust PLC is a closed-end asset management company. The group is designed to provide investors with an attractive and sustainable level of income, with an element of capital growth, by investing in a diversified portfolio of renewable energy and infrastructure assets in the UK, Ireland, and Northern Europe. It focuses on diversification by geography, technology, revenue, and project stage, and is designed to deliver stability of revenues and consistency of income to shareholders. The sustainable Investment objective of the Company is to accelerate the transition to net zero through its investments, compiling and operating a diversified portfolio of renewable energy and infrastructure assets to help facilitate the transition to a more sustainable future.
20GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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