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Hudaco IndustriesJSE:HDC -0.64%91 Return-on-Tangible-Equity is 16.34% as of May. 2026, which is 51% below its 10-year median of 33.15. GuruFocus rates JSE:HDC with a GF Score™ of 91/100 and a GF Value™ of R200.52 (Fairly Valued). Among 155 Industrial Distribution companies, Hudaco Industries ranks better than 76.77% 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. Hudaco Industries's annualized net income for the quarter that ended in May. 2026 was R358 Mil. Hudaco Industries's average shareholder tangible equity for the quarter that ended in May. 2026 was R2,191 Mil. Therefore, Hudaco Industries's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2026 was 16.34%.
The historical rank and industry rank for Hudaco Industries's Return-on-Tangible-Equity or its related term are showing as below:
JSE:HDC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.77 Med: 33.15 Max: 52.96
Current: 24.14
During the past 13 years, Hudaco Industries's highest Return-on-Tangible-Equity was 52.96%. The lowest was 2.77%. And the median was 33.15%.
JSE:HDC's Return-on-Tangible-Equity is ranked better than 76.77% of 155
companies
in the Industrial Distribution industry
Industry Median: 8.96
vs JSE:HDC: 24.14
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.
Hudaco Industries Return-on-Tangible-Equity Related Terms
Hudaco Industries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hudaco Industries'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.
JSE:HDC vs GWW, FAST, FERG: Return-on-Tangible-Equity Comparison
For the Industrial Distribution subindustry, Hudaco Industries'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.
Hudaco Industries Return-on-Tangible-Equity vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Hudaco Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hudaco Industries'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 (May. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 16.34% mean?
Hudaco Industries (JSE:HDC) has a Return-on-Tangible-Equity of 16.34% as of May. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hudaco Industries and its competitors. This is 51% below median its historical median of 33.15. Over the past decade, Hudaco Industries' Return-on-Tangible-Equity has ranged from 2.77 to 52.96. According to the industry distribution chart, Hudaco Industries ranks #36 out of 155 companies in the Industrial Distribution industry, placing it in the top 23.2%.
Is Hudaco Industries' Return-on-Tangible-Equity too high?
Hudaco Industries' current Return-on-Tangible-Equity of 16.34% is 51% below median its 10-year median of 33.15. Over the past 10 years, this metric has ranged from a low of 2.77 to a high of 52.96. The Industrial Distribution industry median Return-on-Tangible-Equity is 8.96. Hudaco Industries' value of 16.34% is 82.4% above this industry median. Based on the distribution chart, Hudaco Industries ranks #36 out of 155 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Hudaco Industries has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hudaco Industries' Return-on-Tangible-Equity compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Hudaco Industries ranks #36 out of 155 companies for Return-on-Tangible-Equity. This places Hudaco Industries in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.96. Hudaco Industries' value of 16.34% is 82.4% above this benchmark. Historically, Hudaco Industries' own Return-on-Tangible-Equity has ranged from 2.77 to 52.96 over the past decade. While the company's 10-year median is 33.15 vs. the industry median of 8.96, Hudaco Industries 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 an Industrial Distribution company?
The median Return-on-Tangible-Equity among Industrial Distribution companies is 8.96, based on 155 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. Hudaco Industries's current Return-on-Tangible-Equity of 16.34% is 82.4% 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 Hudaco Industries and its competitors. For the Industrial Distribution industry, the median Return-on-Tangible-Equity is 8.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hudaco Industries's current Return-on-Tangible-Equity is 16.34%, which is 51% below median its own 10-year median of 33.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hudaco Industries stock overvalued right now?
Based on GuruFocus' analysis, Hudaco Industries (JSE:HDC) is currently considered Fairly Valued. The stock's GF Value™ is R200.52, compared to a current price of R190.78 — trading 4.9% below its estimated fair value. The current Return-on-Tangible-Equity is 16.34%, which is 51% below median its 10-year median of 33.15 and 82.4% above the Industrial Distribution industry median of 8.96. Hudaco Industries' overall GF Score™ is 91/100. 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 Hudaco Industries (JSE:HDC), the current Return-on-Tangible-Equity is 16.34% as of May. 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 Hudaco Industries (JSE:HDC) Overvalued in 2026?
Based on GuruFocus' analysis, Hudaco Industries stock appears to be undervalued.
The current stock price of R190.78 is trading 4.9% below its estimated GF Value™ of R200.52.
GuruFocus considers Hudaco Industries to be Fairly Valued.
Key valuation signals for JSE:HDC:
Return-on-Tangible-Equity: 16.34% (51% below median its 10-year median of 33.15)
GF Value™: R200.52 vs. price of R190.78 (4.9% below fair value)
Industry Position: 82.4% above the Industrial Distribution median (#36 of 155)
No single metric tells the full story. See the JSE:HDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hudaco Industries Ltd is engaged in importing and distributing branded automotive, industrial and electrical consumable products. The company operates in two business segment such as Consumer-related product segment which includes power tools, security equipment, communication equipment, automotive and batteries, and Engineering consumables segment which consist of bearings, diesel engines and spares, and power transmission. It generates maximum revenue from Engineering consumables segment. Geographically, it derives a majority of revenue from South Africa.
91GF Score
Get the complete analysis for JSE:HDC
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