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. Al Jazeera Services's annualized net income for the quarter that ended in Mar. 2018 was ر.ع2.85 Mil. Al Jazeera Services's average shareholder tangible equity for the quarter that ended in Mar. 2018 was ر.ع23.31 Mil. Therefore, Al Jazeera Services's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2018 was 12.22%.
The historical rank and industry rank for Al Jazeera Services's Return-on-Tangible-Equity or its related term are showing as below:
MUS:AJSS's Return-on-Tangible-Equity is not ranked *
in the Business Services industry.
Industry Median: 10.54 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Al Jazeera Services (MUS:AJSS) 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.
Al Jazeera Services Return-on-Tangible-Equity Related Terms
Al Jazeera Services Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Al Jazeera Services'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.
Al Jazeera Services Return-on-Tangible-Equity Chart
MUS:AJSS vs STWC: Return-on-Tangible-Equity Comparison
For the Specialty Business Services subindustry, Al Jazeera Services'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.
Al Jazeera Services Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, Al Jazeera Services's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Al Jazeera Services'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. 2018) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.22% mean?
Al Jazeera Services (MUS:AJSS) has a Return-on-Tangible-Equity of 12.22% as of Mar. 2018. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Al Jazeera Services and its competitors.
Is Al Jazeera Services' Return-on-Tangible-Equity too high?
Al Jazeera Services' current Return-on-Tangible-Equity is 12.22%. The Business Services industry median Return-on-Tangible-Equity is 10.54. Al Jazeera Services' value of 12.22% is 15.9% above this industry median.
How does Al Jazeera Services' Return-on-Tangible-Equity compare to STWC?
Al Jazeera Services' Return-on-Tangible-Equity of 12.22% can be compared against companies in the Business Services industry. The industry median Return-on-Tangible-Equity is 10.54. Al Jazeera Services' value of 12.22% is 15.9% 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.54, based on 1,009 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. Al Jazeera Services's current Return-on-Tangible-Equity of 12.22% is 15.9% 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 Al Jazeera Services and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Jazeera Services's current Return-on-Tangible-Equity is 12.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Jazeera Services stock overvalued right now?
Al Jazeera Services (MUS:AJSS) has a current Return-on-Tangible-Equity of 12.22%. The current Return-on-Tangible-Equity is 12.22% and 15.9% above the Business Services industry median of 10.54. 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 Al Jazeera Services (MUS:AJSS), the current Return-on-Tangible-Equity is 12.22% as of Mar. 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.
Al Jazeera Services, formerly Al Jazeira Services Co SAOG, and its subsidiary are mainly engaged in catering and service support in Oman. The firm is engaged in contracting services which include catering, housekeeping, laundry, equipment supplies, and allied services. The contracting services business involves the feeding and housing of workers and personnel engaged in the industrial, oil, and gas sectors, military and civilian defense forces, and hospital, and educational sectors. In addition, the company is also engaged in investment activities. The company holds investment interests in banking, services, and industrial sectors in the local securities market as well as in the overseas stock market.
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