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ItaltileJSE:ITE -1.06%84 Return-on-Tangible-Equity is 18.92% as of Dec. 2025, which is 20% below its 10-year median of 23.58. GuruFocus rates JSE:ITE with a GF Score™ of 84/100 and a GF Value™ of R12.08 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,060 Retail - Cyclical companies, Italtile ranks better than 70.19% 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. Italtile's annualized net income for the quarter that ended in Dec. 2025 was R1,452 Mil. Italtile's average shareholder tangible equity for the quarter that ended in Dec. 2025 was R7,675 Mil. Therefore, Italtile's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 18.92%.
The historical rank and industry rank for Italtile's Return-on-Tangible-Equity or its related term are showing as below:
JSE:ITE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.68 Med: 23.58 Max: 29.5
Current: 17.92
During the past 13 years, Italtile's highest Return-on-Tangible-Equity was 29.50%. The lowest was 17.68%. And the median was 23.58%.
JSE:ITE's Return-on-Tangible-Equity is ranked better than 70.19% of 1060
companies
in the Retail - Cyclical industry
Industry Median: 8.455
vs JSE:ITE: 17.92
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.
Italtile Return-on-Tangible-Equity Related Terms
Italtile Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Italtile'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:ITE vs HD, LOW, FND: Return-on-Tangible-Equity Comparison
For the Home Improvement Retail subindustry, Italtile'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.
Italtile Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Italtile's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Italtile'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 18.92% mean?
Italtile (JSE:ITE) has a Return-on-Tangible-Equity of 18.92% 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 Italtile and its competitors. This is 20% below median its historical median of 23.58. Over the past decade, Italtile's Return-on-Tangible-Equity has ranged from 17.68 to 29.50. According to the industry distribution chart, Italtile ranks #316 out of 1060 companies in the Retail - Cyclical industry, placing it in the top 29.8%.
Is Italtile's Return-on-Tangible-Equity too high?
Italtile's current Return-on-Tangible-Equity of 18.92% is 20% below median its 10-year median of 23.58. Over the past 10 years, this metric has ranged from a low of 17.68 to a high of 29.50. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.46. Italtile's value of 18.92% is 123.8% above this industry median. Based on the distribution chart, Italtile ranks #316 out of 1060 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Italtile has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Italtile's Return-on-Tangible-Equity compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Italtile ranks #316 out of 1060 companies for Return-on-Tangible-Equity. This puts Italtile in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.46. Italtile's value of 18.92% is 123.8% above this benchmark. Historically, Italtile's own Return-on-Tangible-Equity has ranged from 17.68 to 29.50 over the past decade. While the company's 10-year median is 23.58 vs. the industry median of 8.46, Italtile 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.46, based on 1,060 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. Italtile's current Return-on-Tangible-Equity of 18.92% is 123.8% 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 Italtile and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Italtile's current Return-on-Tangible-Equity is 18.92%, which is 20% below median its own 10-year median of 23.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Italtile stock overvalued right now?
Based on GuruFocus' analysis, Italtile (JSE:ITE) is currently considered Modestly Undervalued. The stock's GF Value™ is R12.08, compared to a current price of R9.37 — trading 22.4% below its estimated fair value. The current Return-on-Tangible-Equity is 18.92%, which is 20% below median its 10-year median of 23.58 and 123.8% above the Retail - Cyclical industry median of 8.46. Italtile's overall GF Score™ is 84/100 with 3 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 Italtile (JSE:ITE), the current Return-on-Tangible-Equity is 18.92% 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 Italtile (JSE:ITE) Overvalued in 2026?
Based on GuruFocus' analysis, Italtile stock appears to be undervalued.
The current stock price of R9.37 is trading 22.4% below its estimated GF Value™ of R12.08.
GuruFocus considers Italtile to be Modestly Undervalued.
Key valuation signals for JSE:ITE:
Return-on-Tangible-Equity: 18.92% (20% below median its 10-year median of 23.58)
GF Value™: R12.08 vs. price of R9.37 (22.4% below fair value)
Industry Position: 123.8% above the Retail - Cyclical median (#316 of 1060)
No single metric tells the full story. See the JSE:ITE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Italtile Ltd is a South Africa-based retailer of imported and local ceramic tiles, bathroom accessories, and related products. Its core business segments into five areas: retail, franchising, properties, manufacturing, and supply and support services. The company's four brands - Italtile, CTM, topT, and U-Light -provide tiles, bath fixtures, home finishing products, lighting, and other accessories. Its manufacturing includes the production of tiles, sanitaryware, baths, adhesive and related products. Italtile derives the majority of its pretax profit from South Africa, predominantly from its retail segment and secondarily from its manufacturing operations.
84GF 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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