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KUW:SHIP's Return-on-Tangible-Equity is ranked better than 62.26% of 1709
companies
in the Construction industry
Industry Median: 8.21
vs KUW:SHIP: 11.92
Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) 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.
Heavy Engineering Industries and Shipbuilding Co KSC Return-on-Tangible-Equity Related Terms
Heavy Engineering Industries and Shipbuilding Co KSC Return-on-Tangible-Equity Historical Data
* 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.
Heavy Engineering Industries and Shipbuilding Co KSC Return-on-Tangible-Equity Chart
Heavy Engineering Industries and Shipbuilding Co KSC Annual Data
KUW:SHIP vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Heavy Engineering Industries and Shipbuilding Co KSC'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.
Heavy Engineering Industries and Shipbuilding Co KSC Return-on-Tangible-Equity vs Construction Industry
* 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 5.55% mean?
Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) has a Return-on-Tangible-Equity of 5.55% 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 Heavy Engineering Industries and Shipbuilding Co KSC and its competitors. This is 56% below median its historical median of 12.50. Over the past decade, Heavy Engineering Industries and Shipbuilding Co KSC's Return-on-Tangible-Equity has ranged from 8.07 to 18.99. According to the industry distribution chart, Heavy Engineering Industries and Shipbuilding Co KSC ranks #645 out of 1709 companies in the Construction industry, placing it in the top 37.7%.
Is Heavy Engineering Industries and Shipbuilding Co KSC's Return-on-Tangible-Equity too high?
Heavy Engineering Industries and Shipbuilding Co KSC's current Return-on-Tangible-Equity of 5.55% is 56% below median its 10-year median of 12.50. Over the past 10 years, this metric has ranged from a low of 8.07 to a high of 18.99. The Construction industry median Return-on-Tangible-Equity is 8.21. Heavy Engineering Industries and Shipbuilding Co KSC's value of 5.55% is 32.4% below this industry median. Based on the distribution chart, Heavy Engineering Industries and Shipbuilding Co KSC ranks #645 out of 1709 companies in the Construction industry, which is above the industry midpoint. Overall, Heavy Engineering Industries and Shipbuilding Co KSC has a GF Scoreâ„¢ of 79/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Heavy Engineering Industries and Shipbuilding Co KSC's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Heavy Engineering Industries and Shipbuilding Co KSC ranks #645 out of 1709 companies for Return-on-Tangible-Equity. This puts Heavy Engineering Industries and Shipbuilding Co KSC in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.21. Heavy Engineering Industries and Shipbuilding Co KSC's value of 5.55% is 32.4% below this benchmark. Historically, Heavy Engineering Industries and Shipbuilding Co KSC's own Return-on-Tangible-Equity has ranged from 8.07 to 18.99 over the past decade. While the company's 10-year median is 12.50 vs. the industry median of 8.21, Heavy Engineering Industries and Shipbuilding Co KSC has consistently been below 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.21, based on 1,709 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. Heavy Engineering Industries and Shipbuilding Co KSC's current Return-on-Tangible-Equity of 5.55% is 32.4% 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 Heavy Engineering Industries and Shipbuilding Co KSC and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heavy Engineering Industries and Shipbuilding Co KSC's current Return-on-Tangible-Equity is 5.55%, which is 56% below median its own 10-year median of 12.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heavy Engineering Industries and Shipbuilding Co KSC stock overvalued right now?
Based on GuruFocus' analysis, Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) is currently considered Possible Value Trap. The stock's GF Value™ is KWD1.04, compared to a current price of KWD0.67 — trading 35.3% below its estimated fair value. The current Return-on-Tangible-Equity is 5.55%, which is 56% below median its 10-year median of 12.50 and 32.4% below the Construction industry median of 8.21. Heavy Engineering Industries and Shipbuilding Co KSC's overall GF Score™ is 79/100 with 6 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 Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP), the current Return-on-Tangible-Equity is 5.55% 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 Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) Overvalued in 2026?
Based on GuruFocus' analysis, Heavy Engineering Industries and Shipbuilding Co KSC stock appears to be undervalued.
The current stock price of KWD0.67 is trading 35.3% below its estimated GF Value™ of KWD1.04.
GuruFocus considers Heavy Engineering Industries and Shipbuilding Co KSC to be Possible Value Trap.
Key valuation signals for KUW:SHIP:
Return-on-Tangible-Equity: 5.55% (56% below median its 10-year median of 12.50)
GF Value™: KWD1.04 vs. price of KWD0.67 (35.3% below fair value)
Industry Position: 32.4% below the Construction median (#645 of 1709)
No single metric tells the full story. See the KUW:SHIP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heavy Engineering Industries and Shipbuilding Co KSC Business Description
Heavy Engineering Industries and Shipbuilding Co KSC is engaged in engineering, procurement, and construction (EPC) contracting, focusing on the shipping and maritime industry in Kuwait. The Company serves sectors including oil and gas, refineries, petrochemicals, power, water distillation and desalination, shipbuilding, ship repair, dredging, and maritime construction. Its activities include industrial and marine works, installation and maintenance services, trading of equipment and spare parts, and contracting and tendering with international companies. It also provides services such as shipyard operations, fabrication, testing and calibration, quality control, scaffolding, galvanizing, onshore and offshore operations, technical manpower supply, and design and engineering services.
79GF Score
Get the complete analysis for KUW:SHIP
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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