Dream Homes & DevelopmentDREM Return-on-Tangible-Equity is 35.79% as of Dec. 2025. The stock has 4 warning signs investors should review. Among 94 Homebuilding & Construction companies, Dream Homes & Development ranks better than 93.62% 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. Dream Homes & Development's annualized net income for the quarter that ended in Dec. 2025 was $0.20 Mil. Dream Homes & Development's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $0.57 Mil. Therefore, Dream Homes & Development's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 35.79%.
The historical rank and industry rank for Dream Homes & Development's Return-on-Tangible-Equity or its related term are showing as below:
DREM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -45.62 Med: -3.45 Max: 30.49
Current: 30.49
During the past 12 years, Dream Homes & Development's highest Return-on-Tangible-Equity was 30.49%. The lowest was -45.62%. And the median was -3.45%.
DREM's Return-on-Tangible-Equity is ranked better than 93.62% of 94
companies
in the Homebuilding & Construction industry
Industry Median: 8.285
vs DREM: 30.49
Dream Homes & Development (OTCPK:DREM) 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.
Dream Homes & Development Return-on-Tangible-Equity Related Terms
Dream Homes & Development Return-on-Tangible-Equity Historical Data
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The historical data trend for Dream Homes & Development'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.
Dream Homes & Development Return-on-Tangible-Equity Chart
DREM vs BDCC, DHI, PHM: Return-on-Tangible-Equity Comparison
For the Residential Construction subindustry, Dream Homes & Development'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.
Dream Homes & Development Return-on-Tangible-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Dream Homes & Development's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Dream Homes & Development'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 (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 35.79% mean?
Dream Homes & Development (DREM) has a Return-on-Tangible-Equity of 35.79% 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 Dream Homes & Development and its competitors. According to the industry distribution chart, Dream Homes & Development ranks #6 out of 94 companies in the Homebuilding & Construction industry, placing it in the top 6.4%.
Is Dream Homes & Development's Return-on-Tangible-Equity too high?
Dream Homes & Development's current Return-on-Tangible-Equity is 35.79%. The Homebuilding & Construction industry median Return-on-Tangible-Equity is 8.29. Dream Homes & Development's value of 35.79% is 332% above this industry median. Based on the distribution chart, Dream Homes & Development ranks #6 out of 94 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers.
How does Dream Homes & Development's Return-on-Tangible-Equity compare to BDCC and DHI?
According to the Homebuilding & Construction industry distribution chart, Dream Homes & Development ranks #6 out of 94 companies for Return-on-Tangible-Equity. This places Dream Homes & Development in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.29. Dream Homes & Development's value of 35.79% is 332% above this benchmark. 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 Homebuilding & Construction company?
The median Return-on-Tangible-Equity among Homebuilding & Construction companies is 8.29, based on 94 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. Dream Homes & Development's current Return-on-Tangible-Equity of 35.79% is 332% 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 Dream Homes & Development and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Equity is 8.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dream Homes & Development's current Return-on-Tangible-Equity is 35.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dream Homes & Development stock overvalued right now?
Based on GuruFocus' analysis, Dream Homes & Development (DREM) is currently considered Significantly Undervalued. The stock's GF Value™ is $0.03, compared to a current price of $0.01 — trading 55.7% below its estimated fair value. The current Return-on-Tangible-Equity is 35.79% and 332% above the Homebuilding & Construction industry median of 8.29. 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 Dream Homes & Development (DREM), the current Return-on-Tangible-Equity is 35.79% 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.
Dream Homes & Development Corp is a regional builder and developer of new single and multi-family homes and subdivisions, as well as a market leader in real estate development. Operations include custom homes, Build to Lease, Build for Sale and Sale of Improved Lots to national builders.
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