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. FAR Chemical Industry's annualized net income for the quarter that ended in Mar. 2026 was BDT-896 Mil. FAR Chemical Industry's average shareholder tangible equity for the quarter that ended in Mar. 2026 was BDT4,592 Mil. Therefore, FAR Chemical Industry's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -19.51%.
The historical rank and industry rank for FAR Chemical Industry's Return-on-Tangible-Equity or its related term are showing as below:
DHA:FARCHEM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -11.31 Med: 1.51 Max: 16.4
Current: -11.31
During the past 12 years, FAR Chemical Industry's highest Return-on-Tangible-Equity was 16.40%. The lowest was -11.31%. And the median was 1.51%.
DHA:FARCHEM's Return-on-Tangible-Equity is ranked worse than 86.74% of 1569
companies
in the Chemicals industry
Industry Median: 5.73
vs DHA:FARCHEM: -11.31
FAR Chemical Industry (DHA:FARCHEM) 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.
FAR Chemical Industry Return-on-Tangible-Equity Related Terms
FAR Chemical Industry Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for FAR Chemical Industry'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.
FAR Chemical Industry Return-on-Tangible-Equity Chart
DHA:FARCHEM vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, FAR Chemical Industry'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.
FAR Chemical Industry Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, FAR Chemical Industry's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where FAR Chemical Industry'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 -19.51% mean?
FAR Chemical Industry (DHA:FARCHEM) has a Return-on-Tangible-Equity of -19.51% 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 FAR Chemical Industry and its competitors. According to the industry distribution chart, FAR Chemical Industry ranks #1361 out of 1569 companies in the Chemicals industry, placing it in the top 86.7%.
Is FAR Chemical Industry's Return-on-Tangible-Equity too high?
FAR Chemical Industry's current Return-on-Tangible-Equity is -19.51%. Based on the distribution chart, FAR Chemical Industry ranks #1361 out of 1569 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, FAR Chemical Industry has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does FAR Chemical Industry's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, FAR Chemical Industry ranks #1361 out of 1569 companies for Return-on-Tangible-Equity. This places FAR Chemical Industry in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.73. 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.73, based on 1,569 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 FAR Chemical Industry and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FAR Chemical Industry's current Return-on-Tangible-Equity is -19.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FAR Chemical Industry stock overvalued right now?
Based on GuruFocus' analysis, FAR Chemical Industry (DHA:FARCHEM) is currently considered Modestly Overvalued. The stock's GF Value™ is BDT18.96, compared to a current price of BDT21.10 — trading 11.3% above its estimated fair value. The current Return-on-Tangible-Equity is -19.51%. FAR Chemical Industry's overall GF Score™ is 87/100 with 8 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 FAR Chemical Industry (DHA:FARCHEM), the current Return-on-Tangible-Equity is -19.51% 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 FAR Chemical Industry (DHA:FARCHEM) Overvalued in 2026?
Based on GuruFocus' analysis, FAR Chemical Industry stock appears to be overvalued.
The current stock price of BDT21.10 is trading 11.3% above its estimated GF Value™ of BDT18.96.
GuruFocus considers FAR Chemical Industry to be Modestly Overvalued.
Key valuation signals for DHA:FARCHEM:
Return-on-Tangible-Equity: -19.51%
GF Value™: BDT18.96 vs. price of BDT21.10 (11.3% above fair value)
No single metric tells the full story. See the DHA:FARCHEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FAR Chemical Industry Ltd operates in the textile dyeing chemical industry. The company is principally engaged in the manufacture and export of Chemical products to different export-oriented Textiles, dyeing and Apparels industries. It generates all of its revenue from the sale of Yarn.
87GF Score
Get the complete analysis for DHA:FARCHEM
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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