FAME (Flamemaster) Return-on-Tangible-Equity: 18.52% (As of Mar. 2005)


What is Flamemaster Return-on-Tangible-Equity?

Flamemaster FAME Return-on-Tangible-Equity is 18.52% as of Mar. 2005.

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. Flamemaster's annualized net income for the quarter that ended in Mar. 2005 was $0.78 Mil. Flamemaster's average shareholder tangible equity for the quarter that ended in Mar. 2005 was $4.23 Mil. Therefore, Flamemaster's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2005 was 18.52%.

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

FAME's Return-on-Tangible-Equity is not ranked *
in the Chemicals industry.
Industry Median: 5.7
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Flamemaster  (OTCPK:FAME) 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.


Flamemaster Return-on-Tangible-Equity Related Terms


Flamemaster Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Flamemaster'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.

Flamemaster Return-on-Tangible-Equity Chart

Flamemaster Annual Data
Trend Sep95 Sep96 Sep97 Sep98 Sep99 Sep00 Sep01 Sep02 Sep03 Sep04
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.39 10.51 11.90 9.49 9.65

Flamemaster Quarterly Data
Jun00 Sep00 Dec00 Mar01 Jun01 Sep01 Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05
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 12.72 18.06 12.34 3.75 18.52

Flamemaster Return-on-Tangible-Equity Competitor Comparison

For the Specialty Chemicals subindustry, Flamemaster'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.


Flamemaster Return-on-Tangible-Equity vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Flamemaster's Return-on-Tangible-Equity distribution charts can be found below:

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



Flamemaster Return-on-Tangible-Equity Calculation

Flamemaster's annualized Return-on-Tangible-Equity for the fiscal year that ended in Sep. 2004 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Sep. 2004 )  (A: Sep. 2003 )(A: Sep. 2004 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Sep. 2004 )  (A: Sep. 2003 )(A: Sep. 2004 )
=0.504/( (6.282+4.163 )/ 2 )
=0.504/5.2225
=9.65 %

Flamemaster's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2005 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2005 )  (Q: Dec. 2004 )(Q: Mar. 2005 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2005 )  (Q: Dec. 2004 )(Q: Mar. 2005 )
=0.784/( (4.153+4.315)/ 2 )
=0.784/4.234
=18.52 %

* 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. 2005) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 18.52% mean?
Flamemaster (FAME) has a Return-on-Tangible-Equity of 18.52% as of Mar. 2005. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Flamemaster and its competitors.
Is Flamemaster's Return-on-Tangible-Equity too high?
Flamemaster's current Return-on-Tangible-Equity is 18.52%. The Chemicals industry median Return-on-Tangible-Equity is 5.70. Flamemaster's value of 18.52% is 224.9% above this industry median.
How does Flamemaster's Return-on-Tangible-Equity compare to competitors?
Flamemaster's Return-on-Tangible-Equity of 18.52% can be compared against companies in the Chemicals industry. The industry median Return-on-Tangible-Equity is 5.70. Flamemaster's value of 18.52% is 224.9% 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.70, based on 1,571 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. Flamemaster's current Return-on-Tangible-Equity of 18.52% is 224.9% 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 Flamemaster and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Flamemaster's current Return-on-Tangible-Equity is 18.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Flamemaster stock overvalued right now?
Flamemaster (FAME) has a current Return-on-Tangible-Equity of 18.52%. The current Return-on-Tangible-Equity is 18.52% and 224.9% above the Chemicals industry median of 5.70. 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 Flamemaster (FAME), the current Return-on-Tangible-Equity is 18.52% as of Mar. 2005. 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.

Flamemaster Business Description

Address 13576 Desmond Street, Pacoima, CA, USA, 91331-2315
Flamemaster Corp manufactures sealants, adhesives, ablative and heat-resistant coatings and electrical cable fire retardant coatings. Its products include Sealants and Coatings.