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. Billing Services Group's annualized net income for the quarter that ended in Jun. 2019 was £0.07 Mil. Billing Services Group's average shareholder tangible equity for the quarter that ended in Jun. 2019 was £8.34 Mil. Therefore, Billing Services Group's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2019 was 0.86%.
The historical rank and industry rank for Billing Services Group's Return-on-Tangible-Equity or its related term are showing as below:
LSE:BILL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -83.94 Med: -75.57 Max: 4144.1
Current: -71.12
During the past 13 years, Billing Services Group's highest Return-on-Tangible-Equity was 4,144.10%. The lowest was -83.94%. And the median was -75.57%.
LSE:BILL's Return-on-Tangible-Equity is not ranked
in the Business Services industry.
Industry Median: 10.57
vs LSE:BILL: -71.12
Billing Services Group (LSE:BILL) 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.
Billing Services Group Return-on-Tangible-Equity Related Terms
Billing Services Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Billing Services Group'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.
Billing Services Group Return-on-Tangible-Equity Chart
LSE:BILL vs GPN, CTAS, CPRT: Return-on-Tangible-Equity Comparison
For the Specialty Business Services subindustry, Billing Services Group'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.
Billing Services Group Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, Billing Services Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Billing Services Group'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 (Jun. 2019) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 0.86% mean?
Billing Services Group (LSE:BILL) has a Return-on-Tangible-Equity of 0.86% as of Jun. 2019. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Billing Services Group and its competitors.
Is Billing Services Group's Return-on-Tangible-Equity too high?
Billing Services Group's current Return-on-Tangible-Equity is 0.86%. The Business Services industry median Return-on-Tangible-Equity is 10.57. Billing Services Group's value of 0.86% is 91.9% below this industry median.
How does Billing Services Group's Return-on-Tangible-Equity compare to GPN and CTAS?
Billing Services Group's Return-on-Tangible-Equity of 0.86% can be compared against companies in the Business Services industry. The industry median Return-on-Tangible-Equity is 10.57. Billing Services Group's value of 0.86% is 91.9% below 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.57, based on 1,009 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. Billing Services Group's current Return-on-Tangible-Equity of 0.86% is 91.9% 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 Billing Services Group and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Billing Services Group's current Return-on-Tangible-Equity is 0.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Billing Services Group stock overvalued right now?
Based on GuruFocus' analysis, Billing Services Group (LSE:BILL) is currently considered Possible Value Trap. The current Return-on-Tangible-Equity is 0.86% and 91.9% below the Business Services industry median of 10.57. 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 Billing Services Group (LSE:BILL), the current Return-on-Tangible-Equity is 0.86% as of Jun. 2019. 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.
Billing Services Group Ltd is focused on payment solutions. The company offers a powerful suite of financial clearinghouse services for merchants, online stores, and telecommunications companies. Its services include local exchange carrier (LEC) phone clearing, billing and settlement solutions, toll clearing services, a Wi-Fi wholesale settlement solution, and VoiceLog Third Party Verification. The company generates a majority of revenue from LEC billing. Its geographical segment includes North America and Europe, the Middle East and Africa. The company derives the maximum revenue from North America.
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