LPA GroupLSE:LPA +0.75%32 Return-on-Tangible-Equity is 6.22% as of Mar. 2026, which is 3% above its 10-year median of 6.05. GuruFocus rates LSE:LPA with a GF Score™ of 32/100 and a GF Value™ of £0.64 (Fairly Valued). The stock has 8 warning signs investors should review. Among 2,973 Industrial Products companies, LPA Group ranks worse than 69.86% 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. LPA Group's annualized net income for the quarter that ended in Mar. 2026 was £0.76 Mil. LPA Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was £12.29 Mil. Therefore, LPA Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 6.22%.
The historical rank and industry rank for LPA Group's Return-on-Tangible-Equity or its related term are showing as below:
LSE:LPA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.92 Med: 6.05 Max: 20.76
Current: 1.91
During the past 13 years, LPA Group's highest Return-on-Tangible-Equity was 20.76%. The lowest was -2.92%. And the median was 6.05%.
LSE:LPA's Return-on-Tangible-Equity is ranked worse than 69.86% of 2973
companies
in the Industrial Products industry
Industry Median: 6.72
vs LSE:LPA: 1.91
LPA Group (LSE:LPA) 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.
LPA Group Return-on-Tangible-Equity Related Terms
LPA Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for LPA 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:LPA vs VRT, BE, HUBB: Return-on-Tangible-Equity Comparison
For the Electrical Equipment & Parts subindustry, LPA 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.
LPA Group Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, LPA Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where LPA 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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.22% mean?
LPA Group (LSE:LPA) has a Return-on-Tangible-Equity of 6.22% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on LPA Group and its competitors. This is near median its historical median of 6.05. According to the industry distribution chart, LPA Group ranks #2077 out of 2973 companies in the Industrial Products industry, placing it in the top 69.9%.
Is LPA Group's Return-on-Tangible-Equity too high?
LPA Group's current Return-on-Tangible-Equity of 6.22% is near median its 10-year median of 6.05. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. LPA Group's value of 6.22% is 7.4% below this industry median. Based on the distribution chart, LPA Group ranks #2077 out of 2973 companies in the Industrial Products industry, which is below the industry midpoint. Overall, LPA Group has a GF Score™ of 32/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does LPA Group's Return-on-Tangible-Equity compare to VRT and BE?
According to the Industrial Products industry distribution chart, LPA Group ranks #2077 out of 2973 companies for Return-on-Tangible-Equity. This places LPA Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.72. LPA Group's value of 6.22% is 7.4% below this benchmark. While the company's 10-year median is 6.05 vs. the industry median of 6.72, LPA 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 Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,973 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. LPA Group's current Return-on-Tangible-Equity of 6.22% is 7.4% 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 LPA 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. LPA Group's current Return-on-Tangible-Equity is 6.22%, which is near median its own 10-year median of 6.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LPA Group stock overvalued right now?
Based on GuruFocus' analysis, LPA Group (LSE:LPA) is currently considered Fairly Valued. The stock's GF Value™ is £0.64, compared to a current price of £0.67 — trading 4.7% above its estimated fair value. The current Return-on-Tangible-Equity is 6.22%, which is near median its 10-year median of 6.05 and 7.4% below the Industrial Products industry median of 6.72. LPA Group's overall GF Score™ is 32/100 with 8 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 LPA Group (LSE:LPA), the current Return-on-Tangible-Equity is 6.22% as of Mar. 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 LPA Group (LSE:LPA) Overvalued in 2026?
Based on GuruFocus' analysis, LPA Group stock appears to be overvalued.
The current stock price of £0.67 is trading 4.7% above its estimated GF Value™ of £0.64.
GuruFocus considers LPA Group to be Fairly Valued.
Key valuation signals for LSE:LPA:
Return-on-Tangible-Equity: 6.22% (near median its 10-year median of 6.05)
GF Value™: £0.64 vs. price of £0.67 (4.7% above fair value)
Industry Position: 7.4% below the Industrial Products median (#2077 of 2973)
No single metric tells the full story. See the LSE:LPA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LPA Group PLC is a designer, manufacturer, and supplier of LED lighting, industrial electrical, electro mechanical systems, and is a distributor of engineered components. The Group comprises three divisions: LPA Connection Systems (electro-mechanical), LPA Lighting Systems (lighting & electronics) and LPA Channel Electric (engineered component distribution), which collectively design, manufacture and market industrial electrical and electronic products. It operates across three market segments: Rail; Aerospace & Defence and Other Its geographic markets are the United Kingdom, Rest of Europe, Rest of World. The majority of its revenue originates in the United Kingdom.
32GF Score
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