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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.
Precinct Properties NZ & Precinct Properties Investments Return-on-Tangible-Equity Related Terms
Precinct Properties NZ & Precinct Properties Investments 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.
* 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.
Precinct Properties NZ & Precinct Properties Investments Return-on-Tangible-Equity vs REITs Industry
* 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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 0.27% mean?
Precinct Properties NZ & Precinct Properties Investments (NZSE:PCT) has a Return-on-Tangible-Equity of 0.27% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Precinct Properties NZ & Precinct Properties Investments and its competitors. This is 96% below median its historical median of 6.95. According to the industry distribution chart, Precinct Properties NZ & Precinct Properties Investments ranks #740 out of 928 companies in the REITs industry, placing it in the top 79.7%.
Is Precinct Properties NZ & Precinct Properties Investments' Return-on-Tangible-Equity too high?
Precinct Properties NZ & Precinct Properties Investments' current Return-on-Tangible-Equity of 0.27% is 96% below median its 10-year median of 6.95. The REITs industry median Return-on-Tangible-Equity is 6.27. Precinct Properties NZ & Precinct Properties Investments' value of 0.27% is 95.7% below this industry median. Based on the distribution chart, Precinct Properties NZ & Precinct Properties Investments ranks #740 out of 928 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Precinct Properties NZ & Precinct Properties Investments has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Precinct Properties NZ & Precinct Properties Investments' Return-on-Tangible-Equity compare to VICI and WPC?
According to the REITs industry distribution chart, Precinct Properties NZ & Precinct Properties Investments ranks #740 out of 928 companies for Return-on-Tangible-Equity. This places Precinct Properties NZ & Precinct Properties Investments in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.27. Precinct Properties NZ & Precinct Properties Investments' value of 0.27% is 95.7% below this benchmark. While the company's 10-year median is 6.95 vs. the industry median of 6.27, Precinct Properties NZ & Precinct Properties Investments 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 REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.27, based on 928 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. Precinct Properties NZ & Precinct Properties Investments's current Return-on-Tangible-Equity of 0.27% is 95.7% 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 Precinct Properties NZ & Precinct Properties Investments and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precinct Properties NZ & Precinct Properties Investments's current Return-on-Tangible-Equity is 0.27%, which is 96% below median its own 10-year median of 6.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precinct Properties NZ & Precinct Properties Investments stock overvalued right now?
Based on GuruFocus' analysis, Precinct Properties NZ & Precinct Properties Investments (NZSE:PCT) is currently considered Modestly Overvalued. The stock's GF Value™ is NZ$0.93, compared to a current price of NZ$1.05 — trading 12.9% above its estimated fair value. The current Return-on-Tangible-Equity is 0.27%, which is 96% below median its 10-year median of 6.95 and 95.7% below the REITs industry median of 6.27. Precinct Properties NZ & Precinct Properties Investments' overall GF Score™ is 49/100 with 8 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 Precinct Properties NZ & Precinct Properties Investments (NZSE:PCT), the current Return-on-Tangible-Equity is 0.27% as of Dec. 2025. 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 Precinct Properties NZ & Precinct Properties Investments (NZSE:PCT) Overvalued in 2026?
Based on GuruFocus' analysis, Precinct Properties NZ & Precinct Properties Investments stock appears to be overvalued.
The current stock price of NZ$1.05 is trading 12.9% above its estimated GF Value™ of NZ$0.93.
GuruFocus considers Precinct Properties NZ & Precinct Properties Investments to be Modestly Overvalued.
Key valuation signals for NZSE:PCT:
Return-on-Tangible-Equity: 0.27% (96% below median its 10-year median of 6.95)
GF Value™: NZ$0.93 vs. price of NZ$1.05 (12.9% above fair value)
Industry Position: 95.7% below the REITs median (#740 of 928)
No single metric tells the full story. See the NZSE:PCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precinct Properties NZ & Precinct Properties Investments Business Description
Precinct Properties NZ Ltd & Precinct Properties Investments Ltd invests predominantly in prime office properties in the central business districts of New Zealand. The company's operating segment includes Investment properties, Hotel and hospitality, Investment management, and Flexible space. It generates maximum revenue from the Investment properties segment. Some of its properties include AON Centre, NTT Tower, Jarden House, PwC Tower at Commercial Bay, and others.
49GF Score
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