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LIM:BACKUAC1's Return-on-Tangible-Equity is not ranked *
in the Beverages - Alcoholic industry.
Industry Median: 8.47 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1) 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.
Union de Cervecerias Peruanas Backus & Johnston Return-on-Tangible-Equity Related Terms
Union de Cervecerias Peruanas Backus & Johnston 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.
Union de Cervecerias Peruanas Backus & Johnston Return-on-Tangible-Equity Chart
Union de Cervecerias Peruanas Backus & Johnston Annual Data
Union de Cervecerias Peruanas Backus & Johnston Return-on-Tangible-Equity Competitor Comparison
For the Beverages - Brewers subindustry, Union de Cervecerias Peruanas Backus & Johnston'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.
Union de Cervecerias Peruanas Backus & Johnston Return-on-Tangible-Equity vs Beverages - Alcoholic 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 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 118.59% mean?
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1) has a Return-on-Tangible-Equity of 118.59% 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 Union de Cervecerias Peruanas Backus & Johnston and its competitors.
Is Union de Cervecerias Peruanas Backus & Johnston's Return-on-Tangible-Equity too high?
Union de Cervecerias Peruanas Backus & Johnston's current Return-on-Tangible-Equity is 118.59%. The Beverages - Alcoholic industry median Return-on-Tangible-Equity is 8.47. Union de Cervecerias Peruanas Backus & Johnston's value of 118.59% is 1300.1% above this industry median. Overall, Union de Cervecerias Peruanas Backus & Johnston has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Union de Cervecerias Peruanas Backus & Johnston's Return-on-Tangible-Equity compare to competitors?
Union de Cervecerias Peruanas Backus & Johnston's Return-on-Tangible-Equity of 118.59% can be compared against companies in the Beverages - Alcoholic industry. The industry median Return-on-Tangible-Equity is 8.47. Union de Cervecerias Peruanas Backus & Johnston's value of 118.59% is 1300.1% above 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 Beverages - Alcoholic company?
The median Return-on-Tangible-Equity among Beverages - Alcoholic companies is 8.47, based on 201 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. Union de Cervecerias Peruanas Backus & Johnston's current Return-on-Tangible-Equity of 118.59% is 1300.1% 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 Union de Cervecerias Peruanas Backus & Johnston and its competitors. For the Beverages - Alcoholic industry, the median Return-on-Tangible-Equity is 8.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Union de Cervecerias Peruanas Backus & Johnston's current Return-on-Tangible-Equity is 118.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Union de Cervecerias Peruanas Backus & Johnston stock overvalued right now?
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1) has a current Return-on-Tangible-Equity of 118.59%. The current Return-on-Tangible-Equity is 118.59% and 1300.1% above the Beverages - Alcoholic industry median of 8.47. Union de Cervecerias Peruanas Backus & Johnston's overall GF Score™ is 23/100. 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 Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1), the current Return-on-Tangible-Equity is 118.59% 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.
Union de Cervecerias Peruanas Backus & Johnston Business Description
Union de Cervecerias Peruanas Backus & Johnston SA is engaged in the business of production, packaging, sale, distribution, and all other types of business related to malted and malt beverages, non-alcoholic beverages, and carbonated waters. The company's main business also includes investment in securities of domestic and foreign companies; the exploitation of rural properties; the sale, processing, conservation, marketing, and export of agricultural products; and the provision of advisory services related to these products.
23GF Score
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