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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. Grupo Palacio de HierroB de CV's annualized net income for the quarter that ended in Mar. 2026 was MXN1,621 Mil. Grupo Palacio de HierroB de CV's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN26,388 Mil. Therefore, Grupo Palacio de HierroB de CV's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 6.14%.
The historical rank and industry rank for Grupo Palacio de HierroB de CV's Return-on-Tangible-Equity or its related term are showing as below:
MEX:GPH1'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.47 Med: 10.4 Max: 15.06
Current: 11.26
During the past 13 years, Grupo Palacio de HierroB de CV's highest Return-on-Tangible-Equity was 15.06%. The lowest was -4.47%. And the median was 10.40%.
MEX:GPH1's Return-on-Tangible-Equity is not ranked
in the Retail - Cyclical industry.
Industry Median: 8.455
vs MEX:GPH1: 11.26
Grupo Palacio de HierroB de CV (MEX:GPH1) 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 Palacio de HierroB de CV Return-on-Tangible-Equity Related Terms
Grupo Palacio de HierroB de CV 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 Palacio de HierroB de CV Return-on-Tangible-Equity Chart
MEX:GPH1 vs DDS, M: Return-on-Tangible-Equity Comparison
For the Department Stores subindustry, Grupo Palacio de HierroB de CV'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 Palacio de HierroB de CV Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Grupo Palacio de HierroB de CV's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Grupo Palacio de HierroB de CV'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 6.14% mean?
Grupo Palacio de HierroB de CV (MEX:GPH1) has a Return-on-Tangible-Equity of 6.14% 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 Palacio de HierroB de CV and its competitors. This is 41% below median its historical median of 10.40.
Is Grupo Palacio de HierroB de CV's Return-on-Tangible-Equity too high?
Grupo Palacio de HierroB de CV's current Return-on-Tangible-Equity of 6.14% is 41% below median its 10-year median of 10.40. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.46. Grupo Palacio de HierroB de CV's value of 6.14% is 27.4% below this industry median. Overall, Grupo Palacio de HierroB de CV has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Grupo Palacio de HierroB de CV's Return-on-Tangible-Equity compare to DDS and M?
Grupo Palacio de HierroB de CV's Return-on-Tangible-Equity of 6.14% can be compared against companies in the Retail - Cyclical industry. The industry median Return-on-Tangible-Equity is 8.46. Grupo Palacio de HierroB de CV's value of 6.14% is 27.4% below this benchmark. While the company's 10-year median is 10.40 vs. the industry median of 8.46, Grupo Palacio de HierroB de CV 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.46, based on 1,060 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 Palacio de HierroB de CV's current Return-on-Tangible-Equity of 6.14% is 27.4% 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 Grupo Palacio de HierroB de CV and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grupo Palacio de HierroB de CV's current Return-on-Tangible-Equity is 6.14%, which is 41% below median its own 10-year median of 10.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grupo Palacio de HierroB de CV stock overvalued right now?
Grupo Palacio de HierroB de CV (MEX:GPH1) has a current Return-on-Tangible-Equity of 6.14%. The stock's GF Value™ is MXN64.42, compared to a current price of MXN42.00 — trading 34.8% below its estimated fair value. The current Return-on-Tangible-Equity is 6.14%, which is 41% below median its 10-year median of 10.40 and 27.4% below the Retail - Cyclical industry median of 8.46. Grupo Palacio de HierroB de CV's overall GF Score™ is 12/100 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 Palacio de HierroB de CV (MEX:GPH1), the current Return-on-Tangible-Equity is 6.14% 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 Palacio de HierroB de CV (MEX:GPH1) Overvalued in 2026?
Based on GuruFocus' analysis, Grupo Palacio de HierroB de CV stock appears to be undervalued.
The current stock price of MXN42.00 is trading 34.8% below its estimated GF Value™ of MXN64.42.
Key valuation signals for MEX:GPH1:
Return-on-Tangible-Equity: 6.14% (41% below median its 10-year median of 10.40)
GF Value™: MXN64.42 vs. price of MXN42.00 (34.8% below fair value)
Industry Position: 27.4% below the Retail - Cyclical median
No single metric tells the full story. See the MEX:GPH1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grupo Palacio de HierroB de CV Business Description
Grupo Palacio de Hierro SAB de CV is a Mexico-based holding company primarily engaged in the retail sector. The company's main revenue generating activities are the operation of a network of department stores, outlets, home furnishing and accessories stores, Boutiques Palacio, boutiques, independent restaurants, bistros, restaurant-stores, travel agencies and beauty clinics as well as restaurants and travel agencies integrated into some of the stores. The company is also involved in the real estate, through the management and operation of shopping centers located in Coyoacan, Polanco, Puebla, and Monterrey. In addition, it offers sales financing services and consumer credits to its clients.
12GF Score
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