Walcom Group (LSE:WALG) Return-on-Tangible-Equity: -636.89% (As of Jun. 2019)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Walcom Group Return-on-Tangible-Equity?

Walcom Group LSE:WALG Return-on-Tangible-Equity is -636.89% as of Jun. 2019. The stock has 6 warning signs investors should review.

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. Walcom Group's annualized net income for the quarter that ended in Jun. 2019 was £-0.66 Mil. Walcom Group's average shareholder tangible equity for the quarter that ended in Jun. 2019 was £0.10 Mil. Therefore, Walcom Group's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2019 was -636.89%.

The historical rank and industry rank for Walcom Group's Return-on-Tangible-Equity or its related term are showing as below:

LSE:WALG' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -171.28   Med: -1.24   Max: 10.73
Current: -171.28

During the past 13 years, Walcom Group's highest Return-on-Tangible-Equity was 10.73%. The lowest was -171.28%. And the median was -1.24%.

LSE:WALG's Return-on-Tangible-Equity is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 7.78 vs LSE:WALG: -171.28

Walcom Group  (LSE:WALG) 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.


Walcom Group Return-on-Tangible-Equity Related Terms


Walcom Group Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Walcom 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.

Walcom Group Return-on-Tangible-Equity Chart

Walcom Group Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.81 2.14 9.43 -29.43 -127.19

Walcom Group Semi-Annual Data
Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -51.84 -13.03 -237.40 14.74 -636.89

Walcom Group Return-on-Tangible-Equity Competitor Comparison

For the Packaged Foods subindustry, Walcom 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.


Walcom Group Return-on-Tangible-Equity vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Walcom Group's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Walcom Group's Return-on-Tangible-Equity falls into.



Walcom Group Return-on-Tangible-Equity Calculation

Walcom Group's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2018 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2018 )  (A: Dec. 2017 )(A: Dec. 2018 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2018 )  (A: Dec. 2017 )(A: Dec. 2018 )
=-1.036/( (1.361+0.268 )/ 2 )
=-1.036/0.8145
=-127.19 %

Walcom Group's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2019 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2019 )  (Q: Dec. 2018 )(Q: Jun. 2019 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2019 )  (Q: Dec. 2018 )(Q: Jun. 2019 )
=-0.656/( (0.268+-0.062)/ 2 )
=-0.656/0.103
=-636.89 %

* 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 -636.89% mean?
Walcom Group (LSE:WALG) has a Return-on-Tangible-Equity of -636.89% 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 Walcom Group and its competitors.
Is Walcom Group's Return-on-Tangible-Equity too high?
Walcom Group's current Return-on-Tangible-Equity is -636.89%.
How does Walcom Group's Return-on-Tangible-Equity compare to competitors?
Walcom Group's Return-on-Tangible-Equity of -636.89% can be compared against companies in the Consumer Packaged Goods industry. The industry median Return-on-Tangible-Equity is 7.78. 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 Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.78, based on 1,881 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 Walcom Group and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Walcom Group's current Return-on-Tangible-Equity is -636.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Walcom Group stock overvalued right now?
Walcom Group (LSE:WALG) has a current Return-on-Tangible-Equity of -636.89%. The current Return-on-Tangible-Equity is -636.89%. 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 Walcom Group (LSE:WALG), the current Return-on-Tangible-Equity is -636.89% 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.

Walcom Group Business Description

Address Number 351 Guo Shou Jing Road, Part D, Mingtai Building, ZJ High-tech Park, Shangai, CHN, 201203
Walcom Group Ltd is an investment holding company engaged in the manufacturing, distribution, and sale of chemical feed and additive products. The company offers products for pigs, poultries, aquatic, cows, and beef cattle and sheeps. Its pig's product includes porcinin plus, and porcimax; poultries include eggronin plus, and avianin plus, and aquatic include aquanin plus. Walcom's operations are located in China, Taiwan, Thailand, Korea and others.