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Smiths GroupCHIX:SMINL +0.18%67 Return-on-Tangible-Equity is 27.24% as of Jan. 2026, which is 28% below its 10-year median of 37.70. GuruFocus rates CHIX:SMINL with a GF Score™ of 67/100 and a GF Value™ of £13.19 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,969 Industrial Products companies, Smiths Group ranks better than 91.01% 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. Smiths Group's annualized net income for the quarter that ended in Jan. 2026 was £260 Mil. Smiths Group's average shareholder tangible equity for the quarter that ended in Jan. 2026 was £955 Mil. Therefore, Smiths Group's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2026 was 27.24%.
The historical rank and industry rank for Smiths Group's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:SMINl'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 23.4 Med: 37.7 Max: 194.39
Current: 29.66
During the past 13 years, Smiths Group's highest Return-on-Tangible-Equity was 194.39%. The lowest was 23.40%. And the median was 37.70%.
CHIX:SMINl's Return-on-Tangible-Equity is ranked better than 91.01% of 2969
companies
in the Industrial Products industry
Industry Median: 6.72
vs CHIX:SMINl: 29.66
Smiths Group (CHIX:SMINl) Return-on-Tangible-Equity Explanation
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.
Smiths Group Return-on-Tangible-Equity Related Terms
Smiths Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Smiths Group'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.
CHIX:SMINL vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Smiths Group'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.
Smiths Group Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Smiths Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Smiths Group'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 (Jan. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 27.24% mean?
Smiths Group (CHIX:SMINL) has a Return-on-Tangible-Equity of 27.24% as of Jan. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Smiths Group and its competitors. This is 28% below median its historical median of 37.70. Over the past decade, Smiths Group's Return-on-Tangible-Equity has ranged from 23.40 to 194.39. According to the industry distribution chart, Smiths Group ranks #267 out of 2969 companies in the Industrial Products industry, placing it in the top 9%.
Is Smiths Group's Return-on-Tangible-Equity too high?
Smiths Group's current Return-on-Tangible-Equity of 27.24% is 28% below median its 10-year median of 37.70. Over the past 10 years, this metric has ranged from a low of 23.40 to a high of 194.39. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Smiths Group's value of 27.24% is 305.4% above this industry median. Based on the distribution chart, Smiths Group ranks #267 out of 2969 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Smiths Group has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smiths Group's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Smiths Group ranks #267 out of 2969 companies for Return-on-Tangible-Equity. This places Smiths Group in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. Smiths Group's value of 27.24% is 305.4% above this benchmark. Historically, Smiths Group's own Return-on-Tangible-Equity has ranged from 23.40 to 194.39 over the past decade. While the company's 10-year median is 37.70 vs. the industry median of 6.72, Smiths Group 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,969 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. Smiths Group's current Return-on-Tangible-Equity of 27.24% is 305.4% 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 Smiths Group and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smiths Group's current Return-on-Tangible-Equity is 27.24%, which is 28% below median its own 10-year median of 37.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smiths Group stock overvalued right now?
Based on GuruFocus' analysis, Smiths Group (CHIX:SMINL) is currently considered Significantly Overvalued. The stock's GF Value™ is £13.19, compared to a current price of £25.56 — trading 93.7% above its estimated fair value. The current Return-on-Tangible-Equity is 27.24%, which is 28% below median its 10-year median of 37.70 and 305.4% above the Industrial Products industry median of 6.72. Smiths Group's overall GF Score™ is 67/100 with 5 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 Smiths Group (CHIX:SMINL), the current Return-on-Tangible-Equity is 27.24% as of Jan. 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 Smiths Group (CHIX:SMINL) Overvalued in 2026?
Based on GuruFocus' analysis, Smiths Group stock appears to be overvalued.
The current stock price of £25.56 is trading 93.7% above its estimated GF Value™ of £13.19.
GuruFocus considers Smiths Group to be Significantly Overvalued.
Key valuation signals for CHIX:SMINL:
Return-on-Tangible-Equity: 27.24% (28% below median its 10-year median of 37.70)
GF Value™: £13.19 vs. price of £25.56 (93.7% above fair value)
Industry Position: 305.4% above the Industrial Products median (#267 of 2969)
No single metric tells the full story. See the CHIX:SMINL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smiths Group is a UK-based industrial technology company focused on engineered solutions for fluid and energy management, following the agreed divestments of its Detection and Interconnect divisions. Its two core businesses—John Crane and Flex-Tek - serve critical infrastructure, energy, aerospace, HVAC, and industrial markets. John Crane supplies mechanical seals, filtration systems, and condition-monitoring technologies used in rotating equipment, with a high-margin, recurring aftermarket business. Flex-Tek provides specialized tubing, heating components, and ducting systems primarily for US HVAC and aerospace OEMs.
67GF Score
Get the complete analysis for CHIX:SMINL
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