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. Hoteles City ExpressB de CV's annualized net income for the quarter that ended in Jun. 2023 was MXN4,585 Mil. Hoteles City ExpressB de CV's average shareholder tangible equity for the quarter that ended in Jun. 2023 was MXN6,393 Mil. Therefore, Hoteles City ExpressB de CV's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2023 was 71.73%.
The historical rank and industry rank for Hoteles City ExpressB de CV's Return-on-Tangible-Equity or its related term are showing as below:
MEX:HCITY's Return-on-Tangible-Equity is not ranked *
in the Travel & Leisure industry.
Industry Median: 7.54 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Hoteles City ExpressB de CV (MEX:HCITY) 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.
Hoteles City ExpressB de CV Return-on-Tangible-Equity Related Terms
Hoteles City ExpressB 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.
Hoteles City ExpressB de CV Return-on-Tangible-Equity Chart
MEX:HCITY vs MAR, HLT, HTHT: Return-on-Tangible-Equity Comparison
For the Lodging subindustry, Hoteles City ExpressB 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.
Hoteles City ExpressB de CV Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Hoteles City ExpressB de CV's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hoteles City ExpressB 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 (Jun. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 71.73% mean?
Hoteles City ExpressB de CV (MEX:HCITY) has a Return-on-Tangible-Equity of 71.73% as of Jun. 2023. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hoteles City ExpressB de CV and its competitors.
Is Hoteles City ExpressB de CV's Return-on-Tangible-Equity too high?
Hoteles City ExpressB de CV's current Return-on-Tangible-Equity is 71.73%. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.54. Hoteles City ExpressB de CV's value of 71.73% is 851.3% above this industry median. Overall, Hoteles City ExpressB de CV has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Hoteles City ExpressB de CV's Return-on-Tangible-Equity compare to MAR and HLT?
Hoteles City ExpressB de CV's Return-on-Tangible-Equity of 71.73% can be compared against companies in the Travel & Leisure industry. The industry median Return-on-Tangible-Equity is 7.54. Hoteles City ExpressB de CV's value of 71.73% is 851.3% above this benchmark. 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 7.54, based on 797 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. Hoteles City ExpressB de CV's current Return-on-Tangible-Equity of 71.73% is 851.3% 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 Hoteles City ExpressB de CV and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hoteles City ExpressB de CV's current Return-on-Tangible-Equity is 71.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hoteles City ExpressB de CV stock overvalued right now?
Hoteles City ExpressB de CV (MEX:HCITY) has a current Return-on-Tangible-Equity of 71.73%. The current Return-on-Tangible-Equity is 71.73% and 851.3% above the Travel & Leisure industry median of 7.54. Hoteles City ExpressB de CV's overall GF Score™ is 8/100. 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 Hoteles City ExpressB de CV (MEX:HCITY), the current Return-on-Tangible-Equity is 71.73% as of Jun. 2023. 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.
Hoteles City Express SAB de CV together with its subsidiaries is engaged in the ownership, operation, and management of hotels using the brand names Hoteles City Express, City Suites and City Junior. The company's segments include Hotel Operation and Hotel Management. The company works as an alternative for business travelers, and the option for anyone looking to increase the value of an investment through a modern, hotel franchise and also, are the working towards the economy business travel segment.
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