CHSCHSCN.PFD -0.60% Return-on-Tangible-Equity is 12.18% as of Feb. 2019, which is 53% below its 10-year median of 25.97. The stock has 1 warning sign 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. CHS's annualized net income for the quarter that ended in Feb. 2019 was $995.06 Mil. CHS's average shareholder tangible equity for the quarter that ended in Feb. 2019 was $8,171.62 Mil. Therefore, CHS's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2019 was 12.18%.
The historical rank and industry rank for CHS's Return-on-Tangible-Equity or its related term are showing as below:
CHSCN.PFD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.66 Med: 25.97 Max: 33.69
Current: 5.66
During the past 13 years, CHS's highest Return-on-Tangible-Equity was 33.69%. The lowest was 5.66%. And the median was 25.97%.
CHSCN.PFD's Return-on-Tangible-Equity is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 7.715
vs CHSCN.PFD: 5.66
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.
CHS Return-on-Tangible-Equity Related Terms
CHS Return-on-Tangible-Equity Historical Data
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The historical data trend for CHS'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.
CHSCN.PFD vs RSSFF, NWGFF, TURV: Return-on-Tangible-Equity Comparison
For the Farm Products subindustry, CHS'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.
CHS Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, CHS's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where CHS'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 (Feb. 2019) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.18% mean?
CHS (CHSCN.PFD) has a Return-on-Tangible-Equity of 12.18% as of Feb. 2019. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on CHS and its competitors. This is 53% below median its historical median of 25.97. Over the past decade, CHS's Return-on-Tangible-Equity has ranged from 5.66 to 33.69.
Is CHS's Return-on-Tangible-Equity too high?
CHS's current Return-on-Tangible-Equity of 12.18% is 53% below median its 10-year median of 25.97. Over the past 10 years, this metric has ranged from a low of 5.66 to a high of 33.69. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.72. CHS's value of 12.18% is 57.9% above this industry median.
How does CHS's Return-on-Tangible-Equity compare to RSSFF and NWGFF?
CHS's Return-on-Tangible-Equity of 12.18% can be compared against companies in the Consumer Packaged Goods industry. The industry median Return-on-Tangible-Equity is 7.72. CHS's value of 12.18% is 57.9% above this benchmark. Historically, CHS's own Return-on-Tangible-Equity has ranged from 5.66 to 33.69 over the past decade. While the company's 10-year median is 25.97 vs. the industry median of 7.72, CHS 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 Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.72, based on 1,876 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. CHS's current Return-on-Tangible-Equity of 12.18% is 57.9% 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 CHS and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CHS's current Return-on-Tangible-Equity is 12.18%, which is 53% below median its own 10-year median of 25.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CHS stock overvalued right now?
CHS (CHSCN.PFD) has a current Return-on-Tangible-Equity of 12.18%. The current Return-on-Tangible-Equity is 12.18%, which is 53% below median its 10-year median of 25.97 and 57.9% above the Consumer Packaged Goods industry median of 7.72. 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 CHS (CHSCN.PFD), the current Return-on-Tangible-Equity is 12.18% as of Feb. 2019. 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.
CHS Inc is an integrated agricultural enterprise, that provides grain, food, and energy resources to businesses and consumers. Its Energy segment produces and provides wholesale distribution of petroleum products and transportation of those products. Its Ag segment, which is the key revenue driver, purchases and processes or resells grains and oilseeds; serves as a wholesaler and retailer of crop inputs; produces and markets ethanol. Its Nitrogen Production segment consists of equity method investment in CF Nitrogen, which entitles the purchase of up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Geographically, the company derives maximum revenue from North America and the rest from South America, Asia Pacific, Europe, Middle East, and Africa (EMEA).
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