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. ALBA SE's annualized net income for the quarter that ended in Jun. 2024 was €2.3 Mil. ALBA SE's average shareholder tangible equity for the quarter that ended in Jun. 2024 was €130.0 Mil. Therefore, ALBA SE's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2024 was 1.77%.
The historical rank and industry rank for ALBA SE's Return-on-Tangible-Equity or its related term are showing as below:
HAM:ABA's Return-on-Tangible-Equity is not ranked *
in the Waste Management industry.
Industry Median: 9.14 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
ALBA SE (HAM:ABA) 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.
ALBA SE Return-on-Tangible-Equity Related Terms
ALBA SE Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ALBA SE'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.
HAM:ABA vs WM, RSG, WCN: Return-on-Tangible-Equity Comparison
For the Waste Management subindustry, ALBA SE'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.
ALBA SE Return-on-Tangible-Equity vs Waste Management Industry
For the Waste Management industry and Industrials sector, ALBA SE's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ALBA SE'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 two times the semi-annual (Jun. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 1.77% mean?
ALBA SE (HAM:ABA) has a Return-on-Tangible-Equity of 1.77% as of Jun. 2024. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ALBA SE and its competitors.
Is ALBA SE's Return-on-Tangible-Equity too high?
ALBA SE's current Return-on-Tangible-Equity is 1.77%. The Waste Management industry median Return-on-Tangible-Equity is 9.14. ALBA SE's value of 1.77% is 80.6% below this industry median. Overall, ALBA SE has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does ALBA SE's Return-on-Tangible-Equity compare to WM and RSG?
ALBA SE's Return-on-Tangible-Equity of 1.77% can be compared against companies in the Waste Management industry. The industry median Return-on-Tangible-Equity is 9.14. ALBA SE's value of 1.77% is 80.6% below 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 Waste Management company?
The median Return-on-Tangible-Equity among Waste Management companies is 9.14, based on 226 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. ALBA SE's current Return-on-Tangible-Equity of 1.77% is 80.6% below 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 ALBA SE and its competitors. For the Waste Management industry, the median Return-on-Tangible-Equity is 9.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALBA SE's current Return-on-Tangible-Equity is 1.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALBA SE stock overvalued right now?
ALBA SE (HAM:ABA) has a current Return-on-Tangible-Equity of 1.77%. The current Return-on-Tangible-Equity is 1.77% and 80.6% below the Waste Management industry median of 9.14. ALBA SE's overall GF Score™ is 10/100. 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 ALBA SE (HAM:ABA), the current Return-on-Tangible-Equity is 1.77% as of Jun. 2024. 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.
ALBA SE is a German based holding company providing environmental services. Its activities are divided into two segments including Steel & Metals Recycling segment and Services segment. The Steel and Metals Recycling segment comprises all of the company's subsidiaries that undertake to recycle of steel and metals activities. The Services segment comprises activities, such as take-back of transport packaging, sales packaging and used paper bags, as well as recovery of waste electrical and electronic equipment. A major part of revenue comes from Steel and Metals segment. It operates in Germany, European countries and Non-European countries, Germany being the country with highest sales.
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