Nordea Bank PolskaLTS:0LRW Return-on-Tangible-Equity is 8.26% as of Sep. 2014, which is 19% below its 10-year median of 10.18. The stock has 7 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. Nordea Bank Polska's annualized net income for the quarter that ended in Sep. 2014 was £45.92 Mil. Nordea Bank Polska's average shareholder tangible equity for the quarter that ended in Sep. 2014 was £555.78 Mil. Therefore, Nordea Bank Polska's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2014 was 8.26%.
The historical rank and industry rank for Nordea Bank Polska's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0LRW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.28 Med: 10.18 Max: 17.48
Current: 4.77
During the past 11 years, Nordea Bank Polska's highest Return-on-Tangible-Equity was 17.48%. The lowest was 1.28%. And the median was 10.18%.
LTS:0LRW's Return-on-Tangible-Equity is not ranked
in the Banks industry.
Industry Median: 11.19
vs LTS:0LRW: 4.77
Nordea Bank Polska (LTS:0LRW) 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.
Nordea Bank Polska Return-on-Tangible-Equity Related Terms
Nordea Bank Polska Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nordea Bank Polska'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.
Nordea Bank Polska Return-on-Tangible-Equity Chart
LTS:0LRW vs BMTC, CTBI, FBAK: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Nordea Bank Polska'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.
Nordea Bank Polska Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Nordea Bank Polska's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nordea Bank Polska'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 four times the quarterly (Sep. 2014) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 8.26% mean?
Nordea Bank Polska (LTS:0LRW) has a Return-on-Tangible-Equity of 8.26% as of Sep. 2014. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Nordea Bank Polska and its competitors. This is 19% below median its historical median of 10.18. Over the past decade, Nordea Bank Polska's Return-on-Tangible-Equity has ranged from 1.28 to 17.48.
Is Nordea Bank Polska's Return-on-Tangible-Equity too high?
Nordea Bank Polska's current Return-on-Tangible-Equity of 8.26% is 19% below median its 10-year median of 10.18. Over the past 10 years, this metric has ranged from a low of 1.28 to a high of 17.48. The Banks industry median Return-on-Tangible-Equity is 11.19. Nordea Bank Polska's value of 8.26% is 26.2% below this industry median.
How does Nordea Bank Polska's Return-on-Tangible-Equity compare to BMTC and CTBI?
Nordea Bank Polska's Return-on-Tangible-Equity of 8.26% can be compared against companies in the Banks industry. The industry median Return-on-Tangible-Equity is 11.19. Nordea Bank Polska's value of 8.26% is 26.2% below this benchmark. Historically, Nordea Bank Polska's own Return-on-Tangible-Equity has ranged from 1.28 to 17.48 over the past decade. While the company's 10-year median is 10.18 vs. the industry median of 11.19, Nordea Bank Polska 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.19, based on 1,522 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. Nordea Bank Polska's current Return-on-Tangible-Equity of 8.26% is 26.2% 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 Nordea Bank Polska and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nordea Bank Polska's current Return-on-Tangible-Equity is 8.26%, which is 19% below median its own 10-year median of 10.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nordea Bank Polska stock overvalued right now?
Nordea Bank Polska (LTS:0LRW) has a current Return-on-Tangible-Equity of 8.26%. The current Return-on-Tangible-Equity is 8.26%, which is 19% below median its 10-year median of 10.18 and 26.2% below the Banks industry median of 11.19. 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 Nordea Bank Polska (LTS:0LRW), the current Return-on-Tangible-Equity is 8.26% as of Sep. 2014. 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.
Nordea Bank Polska S.A. is engaged in banking and financial services via Internet, telephone, SMS, and the branch network. Its services include Nordea account, the account eFirma and eFirma and low-interest loans and deposits.
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