Downer EDIDNERY -8.46%63 Return-on-Tangible-Equity is Negative Tangible Equity% as of Dec. 2025. GuruFocus rates DNERY with a GF Score™ of 63/100 and a GF Value™ of $3.29. The stock has 8 warning signs investors should review. Among 1,705 Construction companies, Downer EDI ranks better than 99.94% 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. Downer EDI's annualized net income for the quarter that ended in Dec. 2025 was $124 Mil. Downer EDI's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $-2 Mil. Therefore, Downer EDI's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was Negative Tangible Equity%.
The historical rank and industry rank for Downer EDI's Return-on-Tangible-Equity or its related term are showing as below:
DNERY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -381.69 Med: 28.91 Max: 196.87
Current: Negative Tangible Equity
During the past 13 years, Downer EDI's highest Return-on-Tangible-Equity was 196.87%. The lowest was -381.69%. And the median was 28.91%.
DNERY's Return-on-Tangible-Equity is ranked better than 99.94% of 1705
companies
in the Construction industry
Industry Median: 8.25
vs DNERY: Negative Tangible Equity
Downer EDI (OTCPK:DNERY) 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.
Downer EDI Return-on-Tangible-Equity Related Terms
Downer EDI Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Downer EDI'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.
DNERY vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Downer EDI'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.
Downer EDI Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Downer EDI's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Downer EDI'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. 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?
Downer EDI (DNERY) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Downer EDI and its competitors. According to the industry distribution chart, Downer EDI ranks #1 out of 1705 companies in the Construction industry, placing it in the top 0.099999999999994%.
Is Downer EDI's Return-on-Tangible-Equity too high?
Downer EDI's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Downer EDI ranks #1 out of 1705 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Downer EDI has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does Downer EDI's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Downer EDI ranks #1 out of 1705 companies for Return-on-Tangible-Equity. This places Downer EDI in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.25. 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.25, based on 1,705 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 Downer EDI and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Downer EDI'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 Downer EDI stock overvalued right now?
Downer EDI (DNERY) has a current Return-on-Tangible-Equity of Negative Tangible Equity%. The stock's GF Value™ is $3.29, compared to a current price of $5.95 — trading 80.9% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Downer EDI's overall GF Score™ is 63/100 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 Downer EDI (DNERY), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Dec. 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.
Is Downer EDI (DNERY) Overvalued in 2026?
Based on GuruFocus' analysis, Downer EDI stock appears to be overvalued.
The current stock price of $5.95 is trading 80.9% above its estimated GF Value™ of $3.29.
No single metric tells the full story. See the DNERY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Downer conducts construction and maintenance in the transport, technology and communications, utilities, rail, and defense segments. The future of Downer is focused on urban services, with mining and higher-risk construction businesses exited. Downer has strong relationships with local and state governments that outsource operational and management activities, ensuring a relatively consistent stream of recurring contract work. The transport segment contributes the majority of earnings.
63GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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