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. Honat Bancorp's annualized net income for the quarter that ended in Dec. 2018 was $8.68 Mil. Honat Bancorp's average shareholder tangible equity for the quarter that ended in Dec. 2018 was $97.87 Mil. Therefore, Honat Bancorp's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2018 was 8.86%.
The historical rank and industry rank for Honat Bancorp's Return-on-Tangible-Equity or its related term are showing as below:
HONT's Return-on-Tangible-Equity is not ranked *
in the Banks industry.
Industry Median: 11.19 * 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.
Honat Bancorp Return-on-Tangible-Equity Related Terms
Honat Bancorp Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Honat Bancorp'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.
HONT vs BSVN, WEBK, TYCB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Honat Bancorp'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.
Honat Bancorp Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Honat Bancorp's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Honat Bancorp'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 one times the annual (Dec. 2018) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 8.86% mean?
Honat Bancorp (HONT) has a Return-on-Tangible-Equity of 8.86% as of Dec. 2018. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Honat Bancorp and its competitors.
Is Honat Bancorp's Return-on-Tangible-Equity too high?
Honat Bancorp's current Return-on-Tangible-Equity is 8.86%. The Banks industry median Return-on-Tangible-Equity is 11.19. Honat Bancorp's value of 8.86% is 20.8% below this industry median. Overall, Honat Bancorp has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Honat Bancorp's Return-on-Tangible-Equity compare to BSVN and WEBK?
Honat Bancorp's Return-on-Tangible-Equity of 8.86% can be compared against companies in the Banks industry. The industry median Return-on-Tangible-Equity is 11.19. Honat Bancorp's value of 8.86% is 20.8% 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.19, based on 1,521 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. Honat Bancorp's current Return-on-Tangible-Equity of 8.86% is 20.8% 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 Honat Bancorp and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honat Bancorp's current Return-on-Tangible-Equity is 8.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honat Bancorp stock overvalued right now?
Honat Bancorp (HONT) has a current Return-on-Tangible-Equity of 8.86%. The current Return-on-Tangible-Equity is 8.86% and 20.8% below the Banks industry median of 11.19. Honat Bancorp's overall GF Score™ is 12/100. 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 Honat Bancorp (HONT), the current Return-on-Tangible-Equity is 8.86% as of Dec. 2018. 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.
Honat Bancorp Inc is a United States-based Bank holding company. It provides full banking services, including trust services. It offers personal banking, business, and financial services. The services include deposit accounts, loan products, digital banking facilities, mortgage facilities, credit cards, and merchant services, among others. Its loan portfolio segments include commercial and industrial, commercial real estate, and retail.
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