DP WorldDFM:DPW Return-on-Tangible-Equity is 116.91% as of Dec. 2019, which is 291% above its 10-year median of 29.88. The stock has 9 warning signs 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. DP World's annualized net income for the quarter that ended in Dec. 2019 was د.إ3,729.75 Mil. DP World's average shareholder tangible equity for the quarter that ended in Dec. 2019 was د.إ3,190.22 Mil. Therefore, DP World's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2019 was 116.91%.
The historical rank and industry rank for DP World's Return-on-Tangible-Equity or its related term are showing as below:
DFM:DPW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 16.68 Med: 29.88 Max: 85.03
Current: 85.44
During the past 13 years, DP World's highest Return-on-Tangible-Equity was 85.03%. The lowest was 16.68%. And the median was 29.88%.
DFM:DPW's Return-on-Tangible-Equity is not ranked
in the Transportation industry.
Industry Median: 9
vs DFM:DPW: 85.44
DP World (DFM:DPW) 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.
DP World Return-on-Tangible-Equity Related Terms
DP World Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for DP World'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:DPW vs KEX: Return-on-Tangible-Equity Comparison
For the Marine Shipping subindustry, DP World'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.
DP World Return-on-Tangible-Equity vs Transportation Industry
For the Transportation industry and Industrials sector, DP World's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where DP World'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 (Dec. 2019) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 116.91% mean?
DP World (DFM:DPW) has a Return-on-Tangible-Equity of 116.91% as of Dec. 2019. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on DP World and its competitors. This is 291% above median its historical median of 29.88. Over the past decade, DP World's Return-on-Tangible-Equity has ranged from 16.68 to 85.03.
Is DP World's Return-on-Tangible-Equity too high?
DP World's current Return-on-Tangible-Equity of 116.91% is 291% above median its 10-year median of 29.88. Over the past 10 years, this metric has ranged from a low of 16.68 to a high of 85.03. The Transportation industry median Return-on-Tangible-Equity is 9.00. DP World's value of 116.91% is 1199% above this industry median.
How does DP World's Return-on-Tangible-Equity compare to KEX?
DP World's Return-on-Tangible-Equity of 116.91% can be compared against companies in the Transportation industry. The industry median Return-on-Tangible-Equity is 9.00. DP World's value of 116.91% is 1199% above this benchmark. Historically, DP World's own Return-on-Tangible-Equity has ranged from 16.68 to 85.03 over the past decade. While the company's 10-year median is 29.88 vs. the industry median of 9.00, DP World 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 9.00, based on 975 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. DP World's current Return-on-Tangible-Equity of 116.91% is 1199% 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 DP World and its competitors. For the Transportation industry, the median Return-on-Tangible-Equity is 9.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DP World's current Return-on-Tangible-Equity is 116.91%, which is 291% above median its own 10-year median of 29.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DP World stock overvalued right now?
DP World (DFM:DPW) has a current Return-on-Tangible-Equity of 116.91%. The current Return-on-Tangible-Equity is 116.91%, which is 291% above median its 10-year median of 29.88 and 1199% above the Transportation industry median of 9.00. 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 DP World (DFM:DPW), the current Return-on-Tangible-Equity is 116.91% as of Dec. 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.
DP World PLC is a transportation and logistics company, domiciled in the United Arab Emirates. The company develops and manages international marine and inland terminal facilities, operates industrial parks and economic zones, and provides logistics services. DP World organises itself into three geographical segments: Asia-Pacific and the Indian subcontinent; Australia and Americas; and the Middle East, Europe, and Africa. The company derives the vast majority of revenue from the Middle East, Europe, and Africa.
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