Stademos Hotels (LTS:0OA5) Return-on-Tangible-Equity: 10.10% (As of Dec. 2018) — 91% Above Median

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 Stademos Hotels Return-on-Tangible-Equity?

Stademos Hotels LTS:0OA5 8 Return-on-Tangible-Equity is 10.10% as of Dec. 2018, which is 91% above its 10-year median of 5.30. GuruFocus rates LTS:0OA5 with a GF Score™ of 8/100. 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. Stademos Hotels's annualized net income for the quarter that ended in Dec. 2018 was €10.99 Mil. Stademos Hotels's average shareholder tangible equity for the quarter that ended in Dec. 2018 was €108.79 Mil. Therefore, Stademos Hotels's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2018 was 10.10%.

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

LTS:0OA5' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.95   Med: 5.3   Max: 6.48
Current: 6.46

During the past 8 years, Stademos Hotels's highest Return-on-Tangible-Equity was 6.48%. The lowest was -0.95%. And the median was 5.30%.

LTS:0OA5's Return-on-Tangible-Equity is not ranked
in the Travel & Leisure industry.
Industry Median: 7.69 vs LTS:0OA5: 6.46

Stademos Hotels  (LTS:0OA5) 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.


Stademos Hotels Return-on-Tangible-Equity Related Terms


Stademos Hotels Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Stademos Hotels'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.

Stademos Hotels Return-on-Tangible-Equity Chart

Stademos Hotels Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Return-on-Tangible-Equity
Get a 7-Day Free Trial 4.61 6.22 5.99 6.08 6.48

Stademos Hotels Semi-Annual Data
Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18
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 10.31 2.13 10.02 2.77 10.10

Stademos Hotels Return-on-Tangible-Equity Competitor Comparison

For the Lodging subindustry, Stademos Hotels'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.


Stademos Hotels Return-on-Tangible-Equity vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Stademos Hotels's Return-on-Tangible-Equity distribution charts can be found below:

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



Stademos Hotels Return-on-Tangible-Equity Calculation

Stademos Hotels'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 )
=6.998/( (107.514+108.582 )/ 2 )
=6.998/108.048
=6.48 %

Stademos Hotels's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2018 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2018 )  (Q: Jun. 2018 )(Q: Dec. 2018 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2018 )  (Q: Jun. 2018 )(Q: Dec. 2018 )
=10.992/( (109+108.582)/ 2 )
=10.992/108.791
=10.10 %

* 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 (Dec. 2018) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 10.10% mean?
Stademos Hotels (LTS:0OA5) has a Return-on-Tangible-Equity of 10.10% as of Dec. 2018. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Stademos Hotels and its competitors. This is 91% above median its historical median of 5.30.
Is Stademos Hotels' Return-on-Tangible-Equity too high?
Stademos Hotels' current Return-on-Tangible-Equity of 10.10% is 91% above median its 10-year median of 5.30. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.69. Stademos Hotels' value of 10.10% is 31.3% above this industry median. Overall, Stademos Hotels has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Stademos Hotels' Return-on-Tangible-Equity compare to competitors?
Stademos Hotels' Return-on-Tangible-Equity of 10.10% can be compared against companies in the Travel & Leisure industry. The industry median Return-on-Tangible-Equity is 7.69. Stademos Hotels' value of 10.10% is 31.3% above this benchmark. While the company's 10-year median is 5.30 vs. the industry median of 7.69, Stademos Hotels has consistently been above 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 Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.69, based on 793 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. Stademos Hotels's current Return-on-Tangible-Equity of 10.10% is 31.3% above 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 Stademos Hotels and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stademos Hotels's current Return-on-Tangible-Equity is 10.10%, which is 91% above median its own 10-year median of 5.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stademos Hotels stock overvalued right now?
Stademos Hotels (LTS:0OA5) has a current Return-on-Tangible-Equity of 10.10%. The current Return-on-Tangible-Equity is 10.10%, which is 91% above median its 10-year median of 5.30 and 31.3% above the Travel & Leisure industry median of 7.69. Stademos Hotels' overall GF Score™ is 8/100 with 6 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 Stademos Hotels (LTS:0OA5), the current Return-on-Tangible-Equity is 10.10% as of Dec. 2018. 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.

Stademos Hotels Business Description

Address 60 Amathus Avenue, P.O.Box 56767, Agios Tychonas, Limassol, CYP, 4533
Stademos Hotels operates in the hotel industry. The principal activity of the company is the ownership and operation of hotels. The company owns and operates two hotels in Cyprus, the four-star Mediterranean beach hotel in Limassol and the five-star Elysium in Paphos.