Engro Polymer & ChemicalsKAR:EPCL -0.37%53 Return-on-Tangible-Equity is 6.42% as of Mar. 2026, which is 77% below its 10-year median of 28.24. GuruFocus rates KAR:EPCL with a GF Score™ of 53/100 and a GF Value™ of ₨46.24 (Modestly Undervalued). The stock has 12 warning signs investors should review. Among 1,566 Chemicals companies, Engro Polymer & Chemicals ranks worse than 86.78% 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. Engro Polymer & Chemicals's annualized net income for the quarter that ended in Mar. 2026 was ₨1,483 Mil. Engro Polymer & Chemicals's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₨23,123 Mil. Therefore, Engro Polymer & Chemicals's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 6.42%.
The historical rank and industry rank for Engro Polymer & Chemicals's Return-on-Tangible-Equity or its related term are showing as below:
KAR:EPCL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -15.68 Med: 28.24 Max: 54.49
Current: -11.34
During the past 13 years, Engro Polymer & Chemicals's highest Return-on-Tangible-Equity was 54.49%. The lowest was -15.68%. And the median was 28.24%.
KAR:EPCL's Return-on-Tangible-Equity is ranked worse than 86.78% of 1566
companies
in the Chemicals industry
Industry Median: 5.7
vs KAR:EPCL: -11.34
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.
Engro Polymer & Chemicals Return-on-Tangible-Equity Related Terms
Engro Polymer & Chemicals Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Engro Polymer & Chemicals'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.
KAR:EPCL vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Engro Polymer & Chemicals'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.
Engro Polymer & Chemicals Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Engro Polymer & Chemicals's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Engro Polymer & Chemicals'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 four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.42% mean?
Engro Polymer & Chemicals (KAR:EPCL) has a Return-on-Tangible-Equity of 6.42% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Engro Polymer & Chemicals and its competitors. This is 77% below median its historical median of 28.24. According to the industry distribution chart, Engro Polymer & Chemicals ranks #1359 out of 1566 companies in the Chemicals industry, placing it in the top 86.8%.
Is Engro Polymer & Chemicals' Return-on-Tangible-Equity too high?
Engro Polymer & Chemicals' current Return-on-Tangible-Equity of 6.42% is 77% below median its 10-year median of 28.24. The Chemicals industry median Return-on-Tangible-Equity is 5.70. Engro Polymer & Chemicals' value of 6.42% is 12.6% above this industry median. Based on the distribution chart, Engro Polymer & Chemicals ranks #1359 out of 1566 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Engro Polymer & Chemicals has a GF Score™ of 53/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Engro Polymer & Chemicals' Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Engro Polymer & Chemicals ranks #1359 out of 1566 companies for Return-on-Tangible-Equity. This places Engro Polymer & Chemicals in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.70. Engro Polymer & Chemicals' value of 6.42% is 12.6% above this benchmark. While the company's 10-year median is 28.24 vs. the industry median of 5.70, Engro Polymer & Chemicals 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.70, based on 1,566 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. Engro Polymer & Chemicals's current Return-on-Tangible-Equity of 6.42% is 12.6% 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 Engro Polymer & Chemicals and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Engro Polymer & Chemicals's current Return-on-Tangible-Equity is 6.42%, which is 77% below median its own 10-year median of 28.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Engro Polymer & Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Engro Polymer & Chemicals (KAR:EPCL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₨46.24, compared to a current price of ₨34.78 — trading 24.8% below its estimated fair value. The current Return-on-Tangible-Equity is 6.42%, which is 77% below median its 10-year median of 28.24 and 12.6% above the Chemicals industry median of 5.70. Engro Polymer & Chemicals' overall GF Score™ is 53/100 with 12 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 Engro Polymer & Chemicals (KAR:EPCL), the current Return-on-Tangible-Equity is 6.42% as of Mar. 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 Engro Polymer & Chemicals (KAR:EPCL) Overvalued in 2026?
Based on GuruFocus' analysis, Engro Polymer & Chemicals stock appears to be undervalued.
The current stock price of ₨34.78 is trading 24.8% below its estimated GF Value™ of ₨46.24.
GuruFocus considers Engro Polymer & Chemicals to be Modestly Undervalued.
Key valuation signals for KAR:EPCL:
Return-on-Tangible-Equity: 6.42% (77% below median its 10-year median of 28.24)
GF Value™: ₨46.24 vs. price of ₨34.78 (24.8% below fair value)
Industry Position: 12.6% above the Chemicals median (#1359 of 1566)
No single metric tells the full story. See the KAR:EPCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Engro Polymer & Chemicals Ltd is mainly engaged in the production and distribution of chlor-vinyl products, including Polyvinyl Chloride (PVC), caustic soda, hydrogen peroxide, and other industrial chemicals such as hydrochloric acid and sodium hypochlorite. The Company operates through multiple segments, with the Poly Vinyl Chloride (PVC) segment generating the highest revenue by supplying products to industries such as pipes, footwear, and packaging across Pakistan and exporting mainly to Asia. Its Caustic Soda and Allied Chemicals segment serves textile and soap industries, while the Hydrogen Peroxide segment mainly caters to the textile sector, and the Power Supplies segment supplies surplus power generated from its power plants.
53GF Score
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