Inverfiatc (LTS:0J7P) Return-on-Tangible-Equity: 1.20% (As of Jun. 2016) — 650% Above Median

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What is Inverfiatc Return-on-Tangible-Equity?

Inverfiatc LTS:0J7P Return-on-Tangible-Equity is 1.20% as of Jun. 2016, which is 650% above its 10-year median of 0.16.

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. Inverfiatc's annualized net income for the quarter that ended in Jun. 2016 was €0.58 Mil. Inverfiatc's average shareholder tangible equity for the quarter that ended in Jun. 2016 was €48.41 Mil. Therefore, Inverfiatc's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2016 was 1.20%.

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

LTS:0J7P' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1.69   Med: 0.16   Max: 3.46
Current: 0.9

During the past 9 years, Inverfiatc's highest Return-on-Tangible-Equity was 3.46%. The lowest was -1.69%. And the median was 0.16%.

LTS:0J7P's Return-on-Tangible-Equity is not ranked
in the Homebuilding & Construction industry.
Industry Median: 8.285 vs LTS:0J7P: 0.90

Inverfiatc  (LTS:0J7P) 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.


Inverfiatc Return-on-Tangible-Equity Related Terms


Inverfiatc Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Inverfiatc'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.

Inverfiatc Return-on-Tangible-Equity Chart

Inverfiatc Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only -0.72 -0.06 -1.69 -1.51 0.16

Inverfiatc Semi-Annual Data
Dec07 Dec08 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16
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 -1.20 -1.81 -0.28 0.60 1.20

LTS:0J7P vs HOV, NOBH: Return-on-Tangible-Equity Comparison

For the Residential Construction subindustry, Inverfiatc'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.


Inverfiatc Return-on-Tangible-Equity vs Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Inverfiatc's Return-on-Tangible-Equity distribution charts can be found below:

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



Inverfiatc Return-on-Tangible-Equity Calculation

Inverfiatc's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2015 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2015 )  (A: Dec. 2014 )(A: Dec. 2015 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2015 )  (A: Dec. 2014 )(A: Dec. 2015 )
=0.078/( (48.643+48.259 )/ 2 )
=0.078/48.451
=0.16 %

Inverfiatc's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2016 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2016 )  (Q: Dec. 2015 )(Q: Jun. 2016 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2016 )  (Q: Dec. 2015 )(Q: Jun. 2016 )
=0.582/( (48.259+48.555)/ 2 )
=0.582/48.407
=1.20 %

* 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. 2016) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 1.20% mean?
Inverfiatc (LTS:0J7P) has a Return-on-Tangible-Equity of 1.20% as of Jun. 2016. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Inverfiatc and its competitors. This is 650% above median its historical median of 0.16.
Is Inverfiatc's Return-on-Tangible-Equity too high?
Inverfiatc's current Return-on-Tangible-Equity of 1.20% is 650% above median its 10-year median of 0.16. The Homebuilding & Construction industry median Return-on-Tangible-Equity is 8.29. Inverfiatc's value of 1.20% is 85.5% below this industry median.
How does Inverfiatc's Return-on-Tangible-Equity compare to HOV and NOBH?
Inverfiatc's Return-on-Tangible-Equity of 1.20% can be compared against companies in the Homebuilding & Construction industry. The industry median Return-on-Tangible-Equity is 8.29. Inverfiatc's value of 1.20% is 85.5% below this benchmark. While the company's 10-year median is 0.16 vs. the industry median of 8.29, Inverfiatc 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 a Homebuilding & Construction company?
The median Return-on-Tangible-Equity among Homebuilding & Construction companies is 8.29, based on 94 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. Inverfiatc's current Return-on-Tangible-Equity of 1.20% is 85.5% 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 Inverfiatc and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Equity is 8.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Inverfiatc's current Return-on-Tangible-Equity is 1.20%, which is 650% above median its own 10-year median of 0.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inverfiatc stock overvalued right now?
Inverfiatc (LTS:0J7P) has a current Return-on-Tangible-Equity of 1.20%. The current Return-on-Tangible-Equity is 1.20%, which is 650% above median its 10-year median of 0.16 and 85.5% below the Homebuilding & Construction industry median of 8.29. 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 Inverfiatc (LTS:0J7P), the current Return-on-Tangible-Equity is 1.20% as of Jun. 2016. 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.

Inverfiatc Business Description

Inverfiatc SA is engaged in development and sale of residential, commercial and industrial buildings, residential property management, as well as the construction and operation of geriatric centers.