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 Tectonics's annualized net income for the quarter that ended in May. 2025 was $5.16 Mil. Environmental Tectonics's average shareholder tangible equity for the quarter that ended in May. 2025 was $14.47 Mil. Therefore, Environmental Tectonics's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2025 was 35.63%.
The historical rank and industry rank for Environmental Tectonics's Return-on-Tangible-Equity or its related term are showing as below:
ETCC's Return-on-Tangible-Equity is not ranked *
in the Aerospace & Defense industry.
Industry Median: 8.195 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
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 Tectonics Return-on-Tangible-Equity Related Terms
Environmental Tectonics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Environmental Tectonics'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.
ETCC vs XERI, DUKR, PRZO: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Environmental Tectonics'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 Tectonics Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Environmental Tectonics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Environmental Tectonics'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 (May. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 35.63% mean?
Environmental Tectonics (ETCC) has a Return-on-Tangible-Equity of 35.63% as of May. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Environmental Tectonics and its competitors.
Is Environmental Tectonics' Return-on-Tangible-Equity too high?
Environmental Tectonics' current Return-on-Tangible-Equity is 35.63%. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.20. Environmental Tectonics' value of 35.63% is 334.8% above this industry median. Overall, Environmental Tectonics has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Environmental Tectonics' Return-on-Tangible-Equity compare to XERI and DUKR?
Environmental Tectonics' Return-on-Tangible-Equity of 35.63% can be compared against companies in the Aerospace & Defense industry. The industry median Return-on-Tangible-Equity is 8.20. Environmental Tectonics' value of 35.63% is 334.8% 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 an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 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 Tectonics's current Return-on-Tangible-Equity of 35.63% is 334.8% 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 Tectonics and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Environmental Tectonics's current Return-on-Tangible-Equity is 35.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Environmental Tectonics stock overvalued right now?
Environmental Tectonics (ETCC) has a current Return-on-Tangible-Equity of 35.63%. The current Return-on-Tangible-Equity is 35.63% and 334.8% above the Aerospace & Defense industry median of 8.20. Environmental Tectonics' overall GF Score™ is 34/100. 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 Tectonics (ETCC), the current Return-on-Tangible-Equity is 35.63% as of May. 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.
Environmental Tectonics Corp is a supplier and innovator in software driven products and services used to create and monitor the physiological effects of flight, including high performance jet tactical flight simulation, fixed and rotary wing upset prevention and recovery and spatial disorientation, and both suborbital and orbital commercial human spaceflight; altitude (hypobaric) chambers; hyperbaric chambers for multiple persons; Aircrew Training Systems; Advanced Disaster Management Simulators; steam and gas (ethylene oxide) sterilizer systems; and Environmental Testing and Simulation Systems. The Company operates through the Aerospace Solutions and Commercial/Industrial Systems segments, with Aerospace Solutions generating maximum revenue.
34GF Score
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