Grupo Mexicano de Desarrollo S A BMEX:GMD 60 Return-on-Tangible-Equity is 20.88% as of Mar. 2026, which is 85% below its 10-year median of 140.63. GuruFocus rates MEX:GMD with a GF Score™ of 60/100 and a GF Value™ of MXN13.83 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 498 Utilities - Regulated companies, Grupo Mexicano de Desarrollo S A B ranks worse than 71.08% on this metric.
The historical rank and industry rank for Grupo Mexicano de Desarrollo S A B's Return-on-Tangible-Equity or its related term are showing as below:
MEX:GMD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.44 Med: 140.63 Max: 251.87
Current: 6.44
During the past 13 years, Grupo Mexicano de Desarrollo S A B's highest Return-on-Tangible-Equity was 251.87%. The lowest was 6.44%. And the median was 140.63%.
MEX:GMD's Return-on-Tangible-Equity is ranked worse than 71.08% of 498
companies
in the Utilities - Regulated industry
Industry Median: 10.91
vs MEX:GMD: 6.44
Grupo Mexicano de Desarrollo S A B (MEX:GMD) 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.
Grupo Mexicano de Desarrollo S A B Return-on-Tangible-Equity Related Terms
Grupo Mexicano de Desarrollo S A B Return-on-Tangible-Equity Historical Data
* 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.
Grupo Mexicano de Desarrollo S A B Return-on-Tangible-Equity Chart
MEX:GMD vs AWK, WTRG, AWR: Return-on-Tangible-Equity Comparison
For the Utilities - Regulated Water subindustry, Grupo Mexicano de Desarrollo S A B'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.
Grupo Mexicano de Desarrollo S A B Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Grupo Mexicano de Desarrollo S A B's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Grupo Mexicano de Desarrollo S A B'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 (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 20.88% mean?
Grupo Mexicano de Desarrollo S A B (MEX:GMD) has a Return-on-Tangible-Equity of 20.88% 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 Grupo Mexicano de Desarrollo S A B and its competitors. This is 85% below median its historical median of 140.63. Over the past decade, Grupo Mexicano de Desarrollo S A B's Return-on-Tangible-Equity has ranged from 6.44 to 251.87. According to the industry distribution chart, Grupo Mexicano de Desarrollo S A B ranks #354 out of 498 companies in the Utilities - Regulated industry, placing it in the top 71.1%.
Is Grupo Mexicano de Desarrollo S A B's Return-on-Tangible-Equity too high?
Grupo Mexicano de Desarrollo S A B's current Return-on-Tangible-Equity of 20.88% is 85% below median its 10-year median of 140.63. Over the past 10 years, this metric has ranged from a low of 6.44 to a high of 251.87. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.91. Grupo Mexicano de Desarrollo S A B's value of 20.88% is 91.4% above this industry median. Based on the distribution chart, Grupo Mexicano de Desarrollo S A B ranks #354 out of 498 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Grupo Mexicano de Desarrollo S A B has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Grupo Mexicano de Desarrollo S A B's Return-on-Tangible-Equity compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Grupo Mexicano de Desarrollo S A B ranks #354 out of 498 companies for Return-on-Tangible-Equity. This places Grupo Mexicano de Desarrollo S A B in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.91. Grupo Mexicano de Desarrollo S A B's value of 20.88% is 91.4% above this benchmark. Historically, Grupo Mexicano de Desarrollo S A B's own Return-on-Tangible-Equity has ranged from 6.44 to 251.87 over the past decade. While the company's 10-year median is 140.63 vs. the industry median of 10.91, Grupo Mexicano de Desarrollo S A B 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 an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.91, based on 498 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. Grupo Mexicano de Desarrollo S A B's current Return-on-Tangible-Equity of 20.88% is 91.4% 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 Grupo Mexicano de Desarrollo S A B and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grupo Mexicano de Desarrollo S A B's current Return-on-Tangible-Equity is 20.88%, which is 85% below median its own 10-year median of 140.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grupo Mexicano de Desarrollo S A B stock overvalued right now?
Based on GuruFocus' analysis, Grupo Mexicano de Desarrollo S A B (MEX:GMD) is currently considered Possible Value Trap. The stock's GF Value™ is MXN13.83, compared to a current price of MXN6.69 — trading 51.6% below its estimated fair value. The current Return-on-Tangible-Equity is 20.88%, which is 85% below median its 10-year median of 140.63 and 91.4% above the Utilities - Regulated industry median of 10.91. Grupo Mexicano de Desarrollo S A B's overall GF Score™ is 60/100 with 3 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 Grupo Mexicano de Desarrollo S A B (MEX:GMD), the current Return-on-Tangible-Equity is 20.88% 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 Grupo Mexicano de Desarrollo S A B (MEX:GMD) Overvalued in 2026?
Based on GuruFocus' analysis, Grupo Mexicano de Desarrollo S A B stock appears to be undervalued.
The current stock price of MXN6.69 is trading 51.6% below its estimated GF Value™ of MXN13.83.
GuruFocus considers Grupo Mexicano de Desarrollo S A B to be Possible Value Trap.
Key valuation signals for MEX:GMD:
Return-on-Tangible-Equity: 20.88% (85% below median its 10-year median of 140.63)
GF Value™: MXN13.83 vs. price of MXN6.69 (51.6% below fair value)
Industry Position: 91.4% above the Utilities - Regulated median (#354 of 498)
No single metric tells the full story. See the MEX:GMD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grupo Mexicano de Desarrollo S A B Business Description
Grupo Mexicano de Desarrollo S A B is engaged in the creation, construction, and administration of infrastructure projects in Mexico. It offers engineering solutions including the construction of civil works and operation of services public concessions. The infrastructure projects of the company comprise Viaducto Punta Diamante, Ecosys I y II, Industria Metalica Integrada, and Carretera Mozimba-Pie de la Cuesta among others.
60GF Score
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