LSE:HMSG's Return-on-Tangible-Equity is not ranked *
in the Industrial Products industry.
Industry Median: 6.72 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
HMS Hydraulic Machines & Systems Group (LSE:HMSG) 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.
HMS Hydraulic Machines & Systems Group Return-on-Tangible-Equity Related Terms
HMS Hydraulic Machines & Systems Group 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.
HMS Hydraulic Machines & Systems Group Return-on-Tangible-Equity Chart
HMS Hydraulic Machines & Systems Group Annual Data
LSE:HMSG vs HON, MMM, GE: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, HMS Hydraulic Machines & Systems 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.
HMS Hydraulic Machines & Systems Group Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, HMS Hydraulic Machines & Systems Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where HMS Hydraulic Machines & Systems 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 (Dec. 2021) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 28.43% mean?
HMS Hydraulic Machines & Systems Group (LSE:HMSG) has a Return-on-Tangible-Equity of 28.43% as of Dec. 2021. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on HMS Hydraulic Machines & Systems Group and its competitors.
Is HMS Hydraulic Machines & Systems Group's Return-on-Tangible-Equity too high?
HMS Hydraulic Machines & Systems Group's current Return-on-Tangible-Equity is 28.43%. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. HMS Hydraulic Machines & Systems Group's value of 28.43% is 323.1% above this industry median. Overall, HMS Hydraulic Machines & Systems Group has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does HMS Hydraulic Machines & Systems Group's Return-on-Tangible-Equity compare to HON and MMM?
HMS Hydraulic Machines & Systems Group's Return-on-Tangible-Equity of 28.43% can be compared against companies in the Industrial Products industry. The industry median Return-on-Tangible-Equity is 6.72. HMS Hydraulic Machines & Systems Group's value of 28.43% is 323.1% 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,972 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. HMS Hydraulic Machines & Systems Group's current Return-on-Tangible-Equity of 28.43% is 323.1% 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 HMS Hydraulic Machines & Systems Group and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HMS Hydraulic Machines & Systems Group's current Return-on-Tangible-Equity is 28.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HMS Hydraulic Machines & Systems Group stock overvalued right now?
HMS Hydraulic Machines & Systems Group (LSE:HMSG) has a current Return-on-Tangible-Equity of 28.43%. The current Return-on-Tangible-Equity is 28.43% and 323.1% above the Industrial Products industry median of 6.72. HMS Hydraulic Machines & Systems Group's overall GF Score™ is 8/100. 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 HMS Hydraulic Machines & Systems Group (LSE:HMSG), the current Return-on-Tangible-Equity is 28.43% as of Dec. 2021. 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.
HMS Hydraulic Machines & Systems Group Business Description
HMS Hydraulic Machines & Systems Group PLC manufactures pump and compressor equipment and provides flow control solutions and related services to oil and gas, power, water supply, and utilities and industrial application industries in Russia and CIS countries and also produces skid-mounted modular oilfield equipment. The company's operating segments are Industrial pumps; Oil and gas equipment & projects; Compressors; and Construction. Its geographical segments are Russia, Ukraine, Germany, Kazakhstan, India, Belarus, Iraq, Iran, Azerbaijan, Egypt, and Others.
8GF Score
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