ESWW (Environmental Solutions Worldwide) Return-on-Tangible-Equity: 397.06% (As of Dec. 2014)


What is Environmental Solutions Worldwide Return-on-Tangible-Equity?

Environmental Solutions Worldwide ESWW Return-on-Tangible-Equity is 397.06% as of Dec. 2014.

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. Environmental Solutions Worldwide's annualized net income for the quarter that ended in Dec. 2014 was $42.73 Mil. Environmental Solutions Worldwide's average shareholder tangible equity for the quarter that ended in Dec. 2014 was $10.76 Mil. Therefore, Environmental Solutions Worldwide's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2014 was 397.06%.

The historical rank and industry rank for Environmental Solutions Worldwide's Return-on-Tangible-Equity or its related term are showing as below:

ESWW's Return-on-Tangible-Equity is not ranked *
in the Vehicles & Parts industry.
Industry Median: 7.49
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Environmental Solutions Worldwide  (OTCPK:ESWW) 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.


Environmental Solutions Worldwide Return-on-Tangible-Equity Related Terms


Environmental Solutions Worldwide Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Environmental Solutions Worldwide'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.

Environmental Solutions Worldwide Return-on-Tangible-Equity Chart

Environmental Solutions Worldwide Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 -444.89 -40.42 23.66 112.44

Environmental Solutions Worldwide Quarterly Data
Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 213.39 37.82 96.91 -66.76 397.06

ESWW vs STCC, FNHI, PFTI: Return-on-Tangible-Equity Comparison

For the Auto Parts subindustry, Environmental Solutions Worldwide'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.


Environmental Solutions Worldwide Return-on-Tangible-Equity vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Environmental Solutions Worldwide's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Environmental Solutions Worldwide's Return-on-Tangible-Equity falls into.



Environmental Solutions Worldwide Return-on-Tangible-Equity Calculation

Environmental Solutions Worldwide's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2014 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2014 )  (A: Dec. 2013 )(A: Dec. 2014 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2014 )  (A: Dec. 2013 )(A: Dec. 2014 )
=11.462/( (4.22+16.167 )/ 2 )
=11.462/10.1935
=112.44 %

Environmental Solutions Worldwide's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2014 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2014 )  (Q: Sep. 2014 )(Q: Dec. 2014 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2014 )  (Q: Sep. 2014 )(Q: Dec. 2014 )
=42.732/( (5.357+16.167)/ 2 )
=42.732/10.762
=397.06 %

* 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. 2014) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 397.06% mean?
Environmental Solutions Worldwide (ESWW) has a Return-on-Tangible-Equity of 397.06% as of Dec. 2014. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Environmental Solutions Worldwide and its competitors.
Is Environmental Solutions Worldwide's Return-on-Tangible-Equity too high?
Environmental Solutions Worldwide's current Return-on-Tangible-Equity is 397.06%. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.49. Environmental Solutions Worldwide's value of 397.06% is 5201.2% above this industry median.
How does Environmental Solutions Worldwide's Return-on-Tangible-Equity compare to STCC and FNHI?
Environmental Solutions Worldwide's Return-on-Tangible-Equity of 397.06% can be compared against companies in the Vehicles & Parts industry. The industry median Return-on-Tangible-Equity is 7.49. Environmental Solutions Worldwide's value of 397.06% is 5201.2% 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.49, based on 1,285 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. Environmental Solutions Worldwide's current Return-on-Tangible-Equity of 397.06% is 5201.2% 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 Environmental Solutions Worldwide and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Environmental Solutions Worldwide's current Return-on-Tangible-Equity is 397.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Environmental Solutions Worldwide stock overvalued right now?
Environmental Solutions Worldwide (ESWW) has a current Return-on-Tangible-Equity of 397.06%. The current Return-on-Tangible-Equity is 397.06% and 5201.2% above the Vehicles & Parts industry median of 7.49. 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 Environmental Solutions Worldwide (ESWW), the current Return-on-Tangible-Equity is 397.06% as of Dec. 2014. 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.

Environmental Solutions Worldwide Business Description

Address 200 Progress Drive, Montgomerville, PA, USA, 18936
Environmental Solutions Worldwide Inc through its subsidiaries is involved in the designing, development, manufacturing, and sales of emissions control technologies. It also provides emissions testing and environmental certification services. The firm's products include horizondpf, longview dpf, and vista dpf. It has Air testing services and MHDD diesel emission control manufacturing and sales operating segments. The company derives the majority of its revenues from MHDD diesel control segment.