Heidelberg Materials AGHDLMY +4.77%78 Return-on-Tangible-Equity is 30.05% as of Dec. 2025, which is 35% above its 10-year median of 22.33. GuruFocus rates HDLMY with a GF Scoreâ„¢ of 78/100 and a GF Valueâ„¢ of $23.82 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 397 Building Materials companies, Heidelberg Materials AG ranks better than 88.92% on this metric.
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. Heidelberg Materials AG's annualized net income for the quarter that ended in Dec. 2025 was $2,938 Mil. Heidelberg Materials AG's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $9,778 Mil. Therefore, Heidelberg Materials AG's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 30.05%.
The historical rank and industry rank for Heidelberg Materials AG's Return-on-Tangible-Equity or its related term are showing as below:
HDLMY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -46.74 Med: 22.33 Max: 34.47
Current: 22.23
During the past 13 years, Heidelberg Materials AG's highest Return-on-Tangible-Equity was 34.47%. The lowest was -46.74%. And the median was 22.33%.
HDLMY's Return-on-Tangible-Equity is ranked better than 88.92% of 397
companies
in the Building Materials industry
Industry Median: 5.08
vs HDLMY: 22.23
Heidelberg Materials AG (OTCPK:HDLMY) 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.
Heidelberg Materials AG Return-on-Tangible-Equity Related Terms
Heidelberg Materials AG Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Heidelberg Materials AG'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.
Heidelberg Materials AG Return-on-Tangible-Equity Chart
HDLMY vs CRH, VMC, MLM: Return-on-Tangible-Equity Comparison
For the Building Materials subindustry, Heidelberg Materials AG'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.
Heidelberg Materials AG Return-on-Tangible-Equity vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Heidelberg Materials AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Heidelberg Materials AG'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 (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 30.05% mean?
Heidelberg Materials AG (HDLMY) has a Return-on-Tangible-Equity of 30.05% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Heidelberg Materials AG and its competitors. This is 35% above median its historical median of 22.33. According to the industry distribution chart, Heidelberg Materials AG ranks #44 out of 397 companies in the Building Materials industry, placing it in the top 11.1%.
Is Heidelberg Materials AG's Return-on-Tangible-Equity too high?
Heidelberg Materials AG's current Return-on-Tangible-Equity of 30.05% is 35% above median its 10-year median of 22.33. The Building Materials industry median Return-on-Tangible-Equity is 5.08. Heidelberg Materials AG's value of 30.05% is 491.5% above this industry median. Based on the distribution chart, Heidelberg Materials AG ranks #44 out of 397 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Heidelberg Materials AG has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Heidelberg Materials AG's Return-on-Tangible-Equity compare to CRH and VMC?
According to the Building Materials industry distribution chart, Heidelberg Materials AG ranks #44 out of 397 companies for Return-on-Tangible-Equity. This places Heidelberg Materials AG in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.08. Heidelberg Materials AG's value of 30.05% is 491.5% above this benchmark. While the company's 10-year median is 22.33 vs. the industry median of 5.08, Heidelberg Materials AG has consistently been above the industry average. 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 Building Materials company?
The median Return-on-Tangible-Equity among Building Materials companies is 5.08, based on 397 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. Heidelberg Materials AG's current Return-on-Tangible-Equity of 30.05% is 491.5% 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 Heidelberg Materials AG and its competitors. For the Building Materials industry, the median Return-on-Tangible-Equity is 5.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heidelberg Materials AG's current Return-on-Tangible-Equity is 30.05%, which is 35% above median its own 10-year median of 22.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heidelberg Materials AG stock overvalued right now?
Based on GuruFocus' analysis, Heidelberg Materials AG (HDLMY) is currently considered Significantly Overvalued. The stock's GF Value™ is $23.82, compared to a current price of $39.32 — trading 65.1% above its estimated fair value. The current Return-on-Tangible-Equity is 30.05%, which is 35% above median its 10-year median of 22.33 and 491.5% above the Building Materials industry median of 5.08. Heidelberg Materials AG's overall GF Score™ is 78/100 with 4 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 Heidelberg Materials AG (HDLMY), the current Return-on-Tangible-Equity is 30.05% as of Dec. 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.
Is Heidelberg Materials AG (HDLMY) Overvalued in 2026?
Based on GuruFocus' analysis, Heidelberg Materials AG stock appears to be overvalued.
The current stock price of $39.32 is trading 65.1% above its estimated GF Value™ of $23.82.
GuruFocus considers Heidelberg Materials AG to be Significantly Overvalued.
Key valuation signals for HDLMY:
Return-on-Tangible-Equity: 30.05% (35% above median its 10-year median of 22.33)
GF Value™: $23.82 vs. price of $39.32 (65.1% above fair value)
Industry Position: 491.5% above the Building Materials median (#44 of 397)
No single metric tells the full story. See the HDLMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heidelberg Materials is one of the world's largest building materials companies, with operations in 60 countries. Its core activities include the production of cement and aggregates, which are used to construct houses, infrastructure, and commercial facilities. The sale of cement and aggregates accounts for the majority of group revenue and profits. Europe is the company's largest market contributing nearly half of group sales. Heidelberg Materials is listed in Germany and has 55,000 employees.
78GF Score
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