Escorts KubotaNSE:ESCORTS +1.14%92 Return-on-Tangible-Equity is 10.46% as of Mar. 2026, which is 29% below its 10-year median of 14.78. GuruFocus rates NSE:ESCORTS with a GF Score™ of 92/100 and a GF Value™ of ₹3,953.37 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 199 Farm & Heavy Construction Machinery companies, Escorts Kubota ranks better than 79.4% on this metric.
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. Escorts Kubota's annualized net income for the quarter that ended in Mar. 2026 was ₹12,821 Mil. Escorts Kubota's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹122,598 Mil. Therefore, Escorts Kubota's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 10.46%.
The historical rank and industry rank for Escorts Kubota's Return-on-Tangible-Equity or its related term are showing as below:
NSE:ESCORTS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.13 Med: 14.78 Max: 21.68
Current: 20.93
During the past 13 years, Escorts Kubota's highest Return-on-Tangible-Equity was 21.68%. The lowest was 8.13%. And the median was 14.78%.
NSE:ESCORTS's Return-on-Tangible-Equity is ranked better than 79.4% of 199
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.27
vs NSE:ESCORTS: 20.93
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.
Escorts Kubota Return-on-Tangible-Equity Related Terms
Escorts Kubota Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Escorts Kubota'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.
NSE:ESCORTS vs CAT, DE, PCAR: Return-on-Tangible-Equity Comparison
For the Farm & Heavy Construction Machinery subindustry, Escorts Kubota'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.
Escorts Kubota Return-on-Tangible-Equity vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Escorts Kubota's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Escorts Kubota'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 10.46% mean?
Escorts Kubota (NSE:ESCORTS) has a Return-on-Tangible-Equity of 10.46% 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 Escorts Kubota and its competitors. This is 29% below median its historical median of 14.78. Over the past decade, Escorts Kubota's Return-on-Tangible-Equity has ranged from 8.13 to 21.68. According to the industry distribution chart, Escorts Kubota ranks #41 out of 199 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 20.6%.
Is Escorts Kubota's Return-on-Tangible-Equity too high?
Escorts Kubota's current Return-on-Tangible-Equity of 10.46% is 29% below median its 10-year median of 14.78. Over the past 10 years, this metric has ranged from a low of 8.13 to a high of 21.68. The Farm & Heavy Construction Machinery industry median Return-on-Tangible-Equity is 9.27. Escorts Kubota's value of 10.46% is 12.8% above this industry median. Based on the distribution chart, Escorts Kubota ranks #41 out of 199 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Escorts Kubota has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Escorts Kubota's Return-on-Tangible-Equity compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Escorts Kubota ranks #41 out of 199 companies for Return-on-Tangible-Equity. This places Escorts Kubota in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.27. Escorts Kubota's value of 10.46% is 12.8% above this benchmark. Historically, Escorts Kubota's own Return-on-Tangible-Equity has ranged from 8.13 to 21.68 over the past decade. While the company's 10-year median is 14.78 vs. the industry median of 9.27, Escorts Kubota 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 Farm & Heavy Construction Machinery company?
The median Return-on-Tangible-Equity among Farm & Heavy Construction Machinery companies is 9.27, based on 199 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. Escorts Kubota's current Return-on-Tangible-Equity of 10.46% is 12.8% 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 Escorts Kubota and its competitors. For the Farm & Heavy Construction Machinery industry, the median Return-on-Tangible-Equity is 9.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Escorts Kubota's current Return-on-Tangible-Equity is 10.46%, which is 29% below median its own 10-year median of 14.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Escorts Kubota stock overvalued right now?
Based on GuruFocus' analysis, Escorts Kubota (NSE:ESCORTS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹3,953.37, compared to a current price of ₹2,941.80 — trading 25.6% below its estimated fair value. The current Return-on-Tangible-Equity is 10.46%, which is 29% below median its 10-year median of 14.78 and 12.8% above the Farm & Heavy Construction Machinery industry median of 9.27. Escorts Kubota's overall GF Score™ is 92/100 with 5 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 Escorts Kubota (NSE:ESCORTS), the current Return-on-Tangible-Equity is 10.46% 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 Escorts Kubota (NSE:ESCORTS) Overvalued in 2026?
Based on GuruFocus' analysis, Escorts Kubota stock appears to be undervalued.
The current stock price of ₹2,941.80 is trading 25.6% below its estimated GF Value™ of ₹3,953.37.
GuruFocus considers Escorts Kubota to be Modestly Undervalued.
Key valuation signals for NSE:ESCORTS:
Return-on-Tangible-Equity: 10.46% (29% below median its 10-year median of 14.78)
GF Value™: ₹3,953.37 vs. price of ₹2,941.80 (25.6% below fair value)
Industry Position: 12.8% above the Farm & Heavy Construction Machinery median (#41 of 199)
No single metric tells the full story. See the NSE:ESCORTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Escorts Kubota Ltd is engaged in manufacturing, sales, marketing, trading and customer support of Agrimachinery Products (Tractors, Harvesters, Engines, Implements, Spare parts, Oils Lubes etc.), Construction Equipment Products (Material Handling Cranes, Road Compaction and Earth moving equipment's, Spare parts etc.). It operates in two core business segments Agri Machinery and Construction Equipment. The Agri Machinery Products segment comprises the tractor business and the non-tractor business, including Agri Solutions, Engine Business, and Spare Parts & Services. The Construction Equipment segment serves the infrastructure, construction and allied sectors through a portfolio of pick-and-carry cranes, backhoe loaders, mini excavators and compactors.
92GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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