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ITM PowerLSE:ITM -0.17%76 Return-on-Tangible-Equity is -13.82% as of Oct. 2025. GuruFocus rates LSE:ITM with a GF Score™ of 76/100 and a GF Value™ of £1.91 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 2,972 Industrial Products companies, ITM Power ranks worse than 88.66% 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. ITM Power's annualized net income for the quarter that ended in Oct. 2025 was £-28.32 Mil. ITM Power's average shareholder tangible equity for the quarter that ended in Oct. 2025 was £204.90 Mil. Therefore, ITM Power's annualized Return-on-Tangible-Equity for the quarter that ended in Oct. 2025 was -13.82%.
The historical rank and industry rank for ITM Power's Return-on-Tangible-Equity or its related term are showing as below:
LSE:ITM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -74.71 Med: -27.87 Max: -10.04
Current: -14.47
During the past 13 years, ITM Power's highest Return-on-Tangible-Equity was -10.04%. The lowest was -74.71%. And the median was -27.87%.
LSE:ITM's Return-on-Tangible-Equity is ranked worse than 88.66% of 2972
companies
in the Industrial Products industry
Industry Median: 6.72
vs LSE:ITM: -14.47
ITM Power (LSE:ITM) 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.
ITM Power Return-on-Tangible-Equity Related Terms
ITM Power Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ITM Power'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:ITM vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, ITM Power'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.
ITM Power Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, ITM Power's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ITM Power'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 (Oct. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -13.82% mean?
ITM Power (LSE:ITM) has a Return-on-Tangible-Equity of -13.82% as of Oct. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ITM Power and its competitors. According to the industry distribution chart, ITM Power ranks #2635 out of 2972 companies in the Industrial Products industry, placing it in the top 88.7%.
Is ITM Power's Return-on-Tangible-Equity too high?
ITM Power's current Return-on-Tangible-Equity is -13.82%. Based on the distribution chart, ITM Power ranks #2635 out of 2972 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, ITM Power has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ITM Power's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, ITM Power ranks #2635 out of 2972 companies for Return-on-Tangible-Equity. This places ITM Power in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.72. 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. 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 ITM Power 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. ITM Power's current Return-on-Tangible-Equity is -13.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITM Power stock overvalued right now?
Based on GuruFocus' analysis, ITM Power (LSE:ITM) is currently considered Possible Value Trap. The stock's GF Value™ is £1.91, compared to a current price of £1.15 — trading 39.8% below its estimated fair value. The current Return-on-Tangible-Equity is -13.82%. ITM Power's overall GF Score™ is 76/100 with 2 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 ITM Power (LSE:ITM), the current Return-on-Tangible-Equity is -13.82% as of Oct. 2025. 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 ITM Power (LSE:ITM) Overvalued in 2026?
Based on GuruFocus' analysis, ITM Power stock appears to be undervalued.
The current stock price of £1.15 is trading 39.8% below its estimated GF Value™ of £1.91.
GuruFocus considers ITM Power to be Possible Value Trap.
Key valuation signals for LSE:ITM:
Return-on-Tangible-Equity: -13.82%
GF Value™: £1.91 vs. price of £1.15 (39.8% below fair value)
No single metric tells the full story. See the LSE:ITM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ITM Power PLC designs and manufactures integrated hydrogen energy systems for energy storage and clean fuel production. The company is also involved in the research and development of scientific and engineering projects; the development and manufacture of prototype products; and the sale of electrolyzer products such as HGas, HFuel, HPac. It offers a range of services including construction, consulting, and other services. Its primary geographic markets are the United Kingdom, the Rest of Europe, Germany, and with maximum revenue from the United Kingdom.
76GF Score
Get the complete analysis for LSE:ITM
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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