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. Installed Building Products's annualized net income for the quarter that ended in Mar. 2026 was €120 Mil. Installed Building Products's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €-27 Mil. Therefore, Installed Building Products's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Installed Building Products's Return-on-Tangible-Equity or its related term are showing as below:
FRA:2IL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10264 Med: 137832 Max: 265400
Current: Negative Tangible Equity
During the past 13 years, Installed Building Products's highest Return-on-Tangible-Equity was 265,400.00%. The lowest was 10,264.00%. And the median was 137,832.00%.
FRA:2IL's Return-on-Tangible-Equity is ranked better than 98.94% of 94
companies
in the Homebuilding & Construction industry
Industry Median: 8.285
vs FRA:2IL: Negative Tangible Equity
Installed Building Products (FRA:2IL) 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.
Installed Building Products Return-on-Tangible-Equity Related Terms
Installed Building Products Return-on-Tangible-Equity Historical Data
* 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.
Installed Building Products Return-on-Tangible-Equity Chart
FRA:2IL vs TMHC, MTH, SKY: Return-on-Tangible-Equity Comparison
For the Residential Construction subindustry, Installed Building Products'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.
Installed Building Products Return-on-Tangible-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Installed Building Products's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Installed Building Products'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 (Mar. 2026) 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?
Installed Building Products (FRA:2IL) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Installed Building Products and its competitors. Over the past decade, Installed Building Products' Return-on-Tangible-Equity has ranged from 10,264.00 to 265,400.00. According to the industry distribution chart, Installed Building Products ranks #1 out of 94 companies in the Homebuilding & Construction industry, placing it in the top 1.1%.
Is Installed Building Products' Return-on-Tangible-Equity too high?
Installed Building Products' current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 10,264.00 to a high of 265,400.00. Based on the distribution chart, Installed Building Products ranks #1 out of 94 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Installed Building Products has a GF Score™ of 93/100, reflecting its overall financial health beyond just this single metric.
How does Installed Building Products' Return-on-Tangible-Equity compare to TMHC and MTH?
According to the Homebuilding & Construction industry distribution chart, Installed Building Products ranks #1 out of 94 companies for Return-on-Tangible-Equity. This places Installed Building Products in the top 1% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.29. Historically, Installed Building Products' own Return-on-Tangible-Equity has ranged from 10,264.00 to 265,400.00 over the past decade. 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. 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 Installed Building Products 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. Installed Building Products'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 Installed Building Products stock overvalued right now?
Installed Building Products (FRA:2IL) has a current Return-on-Tangible-Equity of Negative Tangible Equity%. The stock's GF Value™ is €195.71, compared to a current price of €198.00 — trading 1.2% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Installed Building Products' overall GF Score™ is 93/100 with 2 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 Installed Building Products (FRA:2IL), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. 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 Installed Building Products (FRA:2IL) Overvalued in 2026?
Based on GuruFocus' analysis, Installed Building Products stock appears to be overvalued.
The current stock price of €198.00 is trading 1.2% above its estimated GF Value™ of €195.71.
No single metric tells the full story. See the FRA:2IL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Installed Building Products Inc is an insulation installer serving the residential new construction market and are also a diversified installer of complementary building products, including waterproofing, fire-stopping and fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving, mirrors and other products throughout the United States. The company installs fiberglass insulation, spray foam insulation, and cellulose insulation. The company has three operating segments consisting of Installation, Manufacturing and Distribution operations. Majority of revenue is derived from Installation segment.
93GF 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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