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Ermes Department StoresCYS:ERME Return-on-Tangible-Equity is Negative Tangible Equity% as of Jun. 2025. The stock has 4 warning signs investors should review. Among 1,059 Retail - Cyclical companies, Ermes Department Stores ranks better than 99.91% 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. Ermes Department Stores's annualized net income for the quarter that ended in Jun. 2025 was €30.69 Mil. Ermes Department Stores's average shareholder tangible equity for the quarter that ended in Jun. 2025 was €-4.69 Mil. Therefore, Ermes Department Stores's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2025 was Negative Tangible Equity%.
The historical rank and industry rank for Ermes Department Stores's Return-on-Tangible-Equity or its related term are showing as below:
CYS:ERME'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -255.92 Med: -43.42 Max: -10.64
Current: Negative Tangible Equity
During the past 13 years, Ermes Department Stores's highest Return-on-Tangible-Equity was -10.64%. The lowest was -255.92%. And the median was -43.42%.
CYS:ERME's Return-on-Tangible-Equity is ranked better than 99.91% of 1059
companies
in the Retail - Cyclical industry
Industry Median: 8.45
vs CYS:ERME: Negative Tangible Equity
Ermes Department Stores (CYS:ERME) 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.
Ermes Department Stores Return-on-Tangible-Equity Related Terms
Ermes Department Stores Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ermes Department Stores'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.
Ermes Department Stores Return-on-Tangible-Equity Chart
CYS:ERME vs DDS, M: Return-on-Tangible-Equity Comparison
For the Department Stores subindustry, Ermes Department Stores'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.
Ermes Department Stores Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ermes Department Stores's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ermes Department Stores'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 Negative Tangible Equity% mean?
Ermes Department Stores (CYS:ERME) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Ermes Department Stores and its competitors. According to the industry distribution chart, Ermes Department Stores ranks #1 out of 1059 companies in the Retail - Cyclical industry, placing it in the top 0.099999999999994%.
Is Ermes Department Stores' Return-on-Tangible-Equity too high?
Ermes Department Stores' current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Ermes Department Stores ranks #1 out of 1059 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers.
How does Ermes Department Stores' Return-on-Tangible-Equity compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Ermes Department Stores ranks #1 out of 1059 companies for Return-on-Tangible-Equity. This places Ermes Department Stores in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.45. 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.45, based on 1,059 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 Ermes Department Stores and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ermes Department Stores's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ermes Department Stores stock overvalued right now?
Based on GuruFocus' analysis, Ermes Department Stores (CYS:ERME) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.01, compared to a current price of €0.01 — trading 45% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Ermes Department Stores (CYS:ERME), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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.
Ermes Department Stores PLC is engaged in operation of department stores. It sells fashion, cosmetics, toys, home goods and other goods and services for all ages and the family.
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