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Chemring GroupLSE:CHG 83 Return-on-Tangible-Equity is 5.72% as of Apr. 2026, which is 65% below its 10-year median of 16.36. GuruFocus rates LSE:CHG with a GF Score™ of 83/100 and a GF Value™ of £4.34 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 335 Aerospace & Defense companies, Chemring Group ranks better than 63.58% 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. Chemring Group's annualized net income for the quarter that ended in Apr. 2026 was £12.2 Mil. Chemring Group's average shareholder tangible equity for the quarter that ended in Apr. 2026 was £213.4 Mil. Therefore, Chemring Group's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 5.72%.
The historical rank and industry rank for Chemring Group's Return-on-Tangible-Equity or its related term are showing as below:
LSE:CHG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -68.59 Med: 16.36 Max: 22.15
Current: 16.01
During the past 13 years, Chemring Group's highest Return-on-Tangible-Equity was 22.15%. The lowest was -68.59%. And the median was 16.36%.
LSE:CHG's Return-on-Tangible-Equity is ranked better than 63.58% of 335
companies
in the Aerospace & Defense industry
Industry Median: 8.1
vs LSE:CHG: 16.01
Chemring Group (LSE:CHG) 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.
Chemring Group Return-on-Tangible-Equity Related Terms
Chemring Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Chemring 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.
LSE:CHG vs SPCX, GE, RTX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Chemring 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.
Chemring Group Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Chemring Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Chemring 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 (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 5.72% mean?
Chemring Group (LSE:CHG) has a Return-on-Tangible-Equity of 5.72% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Chemring Group and its competitors. This is 65% below median its historical median of 16.36. According to the industry distribution chart, Chemring Group ranks #122 out of 335 companies in the Aerospace & Defense industry, placing it in the top 36.4%.
Is Chemring Group's Return-on-Tangible-Equity too high?
Chemring Group's current Return-on-Tangible-Equity of 5.72% is 65% below median its 10-year median of 16.36. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.10. Chemring Group's value of 5.72% is 29.4% below this industry median. Based on the distribution chart, Chemring Group ranks #122 out of 335 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Chemring Group has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemring Group's Return-on-Tangible-Equity compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Chemring Group ranks #122 out of 335 companies for Return-on-Tangible-Equity. This puts Chemring Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.10. Chemring Group's value of 5.72% is 29.4% below this benchmark. While the company's 10-year median is 16.36 vs. the industry median of 8.10, Chemring Group 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 an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.10, based on 335 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. Chemring Group's current Return-on-Tangible-Equity of 5.72% is 29.4% 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 Chemring Group and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemring Group's current Return-on-Tangible-Equity is 5.72%, which is 65% below median its own 10-year median of 16.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemring Group stock overvalued right now?
Based on GuruFocus' analysis, Chemring Group (LSE:CHG) is currently considered Modestly Overvalued. The stock's GF Value™ is £4.34, compared to a current price of £5.40 — trading 24.4% above its estimated fair value. The current Return-on-Tangible-Equity is 5.72%, which is 65% below median its 10-year median of 16.36 and 29.4% below the Aerospace & Defense industry median of 8.10. Chemring Group's overall GF Score™ is 83/100 with 5 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 Chemring Group (LSE:CHG), the current Return-on-Tangible-Equity is 5.72% as of Apr. 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 Chemring Group (LSE:CHG) Overvalued in 2026?
Based on GuruFocus' analysis, Chemring Group stock appears to be overvalued.
The current stock price of £5.40 is trading 24.4% above its estimated GF Value™ of £4.34.
GuruFocus considers Chemring Group to be Modestly Overvalued.
Key valuation signals for LSE:CHG:
Return-on-Tangible-Equity: 5.72% (65% below median its 10-year median of 16.36)
GF Value™: £4.34 vs. price of £5.40 (24.4% above fair value)
Industry Position: 29.4% below the Aerospace & Defense median (#122 of 335)
No single metric tells the full story. See the LSE:CHG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemring Group PLC is a defense technology company. The company's operating segment include: i) Countermeasures and Energetics segment: It is engaged in the development and manufacturing of expendable countermeasures for air and sea platforms, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile components, propellants, separation sub-systems, actuators, and energetic materials, ii) Sensors and Information: it is engaged in the development and manufacturing of electronic countermeasures, chemical and biological threat detection equipment, and explosive hazard detection (EHD) equipment. It generated the majority of the revenue from the Countermeasures and Energetics segment. Geographically, the maximum revenue is generated from the USA.
83GF Score
Get the complete analysis for LSE:CHG
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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