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Air Arabia PJSCDFM:AIRARABIA +0.82%80 Return-on-Tangible-Equity is 14.99% as of Mar. 2026, which is 27% below its 10-year median of 20.55. GuruFocus rates DFM:AIRARABIA with a GF Score™ of 80/100 and a GF Value™ of د.إ3.84 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 979 Transportation companies, Air Arabia PJSC ranks better than 83.15% 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. Air Arabia PJSC's annualized net income for the quarter that ended in Mar. 2026 was د.إ993 Mil. Air Arabia PJSC's average shareholder tangible equity for the quarter that ended in Mar. 2026 was د.إ6,622 Mil. Therefore, Air Arabia PJSC's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.99%.
The historical rank and industry rank for Air Arabia PJSC's Return-on-Tangible-Equity or its related term are showing as below:
DFM:AIRARABIA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -15.33 Med: 20.55 Max: 26.55
Current: 24.86
During the past 13 years, Air Arabia PJSC's highest Return-on-Tangible-Equity was 26.55%. The lowest was -15.33%. And the median was 20.55%.
DFM:AIRARABIA's Return-on-Tangible-Equity is ranked better than 83.15% of 979
companies
in the Transportation industry
Industry Median: 8.96
vs DFM:AIRARABIA: 24.86
Air Arabia PJSC (DFM:AIRARABIA) 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.
Air Arabia PJSC Return-on-Tangible-Equity Related Terms
Air Arabia PJSC Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Air Arabia PJSC'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.
DFM:AIRARABIA vs DAL, UAL, LUV: Return-on-Tangible-Equity Comparison
For the Airlines subindustry, Air Arabia PJSC'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.
Air Arabia PJSC Return-on-Tangible-Equity vs Transportation Industry
For the Transportation industry and Industrials sector, Air Arabia PJSC's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Air Arabia PJSC'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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 14.99% mean?
Air Arabia PJSC (DFM:AIRARABIA) has a Return-on-Tangible-Equity of 14.99% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Air Arabia PJSC and its competitors. This is 27% below median its historical median of 20.55. According to the industry distribution chart, Air Arabia PJSC ranks #165 out of 979 companies in the Transportation industry, placing it in the top 16.9%.
Is Air Arabia PJSC's Return-on-Tangible-Equity too high?
Air Arabia PJSC's current Return-on-Tangible-Equity of 14.99% is 27% below median its 10-year median of 20.55. The Transportation industry median Return-on-Tangible-Equity is 8.96. Air Arabia PJSC's value of 14.99% is 67.3% above this industry median. Based on the distribution chart, Air Arabia PJSC ranks #165 out of 979 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Air Arabia PJSC has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Air Arabia PJSC's Return-on-Tangible-Equity compare to DAL and UAL?
According to the Transportation industry distribution chart, Air Arabia PJSC ranks #165 out of 979 companies for Return-on-Tangible-Equity. This places Air Arabia PJSC in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.96. Air Arabia PJSC's value of 14.99% is 67.3% above this benchmark. While the company's 10-year median is 20.55 vs. the industry median of 8.96, Air Arabia PJSC 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 Transportation company?
The median Return-on-Tangible-Equity among Transportation companies is 8.96, based on 979 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. Air Arabia PJSC's current Return-on-Tangible-Equity of 14.99% is 67.3% 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 Air Arabia PJSC and its competitors. For the Transportation industry, the median Return-on-Tangible-Equity is 8.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Arabia PJSC's current Return-on-Tangible-Equity is 14.99%, which is 27% below median its own 10-year median of 20.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Arabia PJSC stock overvalued right now?
Based on GuruFocus' analysis, Air Arabia PJSC (DFM:AIRARABIA) is currently considered Modestly Overvalued. The stock's GF Value™ is د.إ3.84, compared to a current price of د.إ4.90 — trading 27.6% above its estimated fair value. The current Return-on-Tangible-Equity is 14.99%, which is 27% below median its 10-year median of 20.55 and 67.3% above the Transportation industry median of 8.96. Air Arabia PJSC's overall GF Score™ is 80/100 with 4 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 Air Arabia PJSC (DFM:AIRARABIA), the current Return-on-Tangible-Equity is 14.99% as of Mar. 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 Air Arabia PJSC (DFM:AIRARABIA) Overvalued in 2026?
Based on GuruFocus' analysis, Air Arabia PJSC stock appears to be overvalued.
The current stock price of د.إ4.90 is trading 27.6% above its estimated GF Value™ of د.إ3.84.
GuruFocus considers Air Arabia PJSC to be Modestly Overvalued.
Key valuation signals for DFM:AIRARABIA:
Return-on-Tangible-Equity: 14.99% (27% below median its 10-year median of 20.55)
GF Value™: د.إ3.84 vs. price of د.إ4.90 (27.6% above fair value)
Industry Position: 67.3% above the Transportation median (#165 of 979)
No single metric tells the full story. See the DFM:AIRARABIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Arabia PJSC is a group of airlines and companies offering travel and tourism services internationally. Its activities include international commercial air transportation, aircraft trading and rental, aircraft spare parts trading, passenger transport, cargo services, aviation training, aircraft repairs and maintenance, as well as travel and tourist agencies, hotels, hotel apartment rentals, representative offices, and document transfer services. The company operates through two segments: Airline, covering air transportation, aircraft rental, passenger transport, cargo services, aviation training, and aircraft repairs and maintenance, and Other, covering travel and tourist agencies, hotels, hotel apartment rentals, representative offices, and document transfer services.
80GF Score
Get the complete analysis for DFM:AIRARABIA
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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