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. Rainbow Rare Earths's annualized net income for the quarter that ended in Dec. 2025 was $-11.82 Mil. Rainbow Rare Earths's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $10.42 Mil. Therefore, Rainbow Rare Earths's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -113.43%.
The historical rank and industry rank for Rainbow Rare Earths's Return-on-Tangible-Equity or its related term are showing as below:
RBWRF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -339.11 Med: -28.82 Max: -20.76
Current: -55.68
During the past 12 years, Rainbow Rare Earths's highest Return-on-Tangible-Equity was -20.76%. The lowest was -339.11%. And the median was -28.82%.
RBWRF's Return-on-Tangible-Equity is ranked worse than 72.79% of 2378
companies
in the Metals & Mining industry
Industry Median: -16.365
vs RBWRF: -55.68
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.
Rainbow Rare Earths Return-on-Tangible-Equity Related Terms
Rainbow Rare Earths Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Rainbow Rare Earths'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.
For the Other Industrial Metals & Mining subindustry, Rainbow Rare Earths'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.
Rainbow Rare Earths Return-on-Tangible-Equity vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Rainbow Rare Earths's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rainbow Rare Earths'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 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 -113.43% mean?
Rainbow Rare Earths (RBWRF) has a Return-on-Tangible-Equity of -113.43% 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 Rainbow Rare Earths and its competitors. According to the industry distribution chart, Rainbow Rare Earths ranks #1731 out of 2378 companies in the Metals & Mining industry, placing it in the top 72.8%.
Is Rainbow Rare Earths' Return-on-Tangible-Equity too high?
Rainbow Rare Earths' current Return-on-Tangible-Equity is -113.43%. Based on the distribution chart, Rainbow Rare Earths ranks #1731 out of 2378 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, Rainbow Rare Earths has a GF Score™ of 21/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rainbow Rare Earths' Return-on-Tangible-Equity compare to competitors?
According to the Metals & Mining industry distribution chart, Rainbow Rare Earths ranks #1731 out of 2378 companies for Return-on-Tangible-Equity. This places Rainbow Rare Earths in the lower half of its industry. 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 Metals & Mining company?
A good Return-on-Tangible-Equity depends on the Metals & Mining industry context. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Rainbow Rare Earths and its competitors. Rainbow Rare Earths's current Return-on-Tangible-Equity is -113.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rainbow Rare Earths stock overvalued right now?
Based on GuruFocus' analysis, Rainbow Rare Earths (RBWRF) is currently considered Fairly Valued. The stock's GF Value™ is $0.21, compared to a current price of $0.22 — trading 4.9% above its estimated fair value. The current Return-on-Tangible-Equity is -113.43%. Rainbow Rare Earths' overall GF Score™ is 21/100 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 Rainbow Rare Earths (RBWRF), the current Return-on-Tangible-Equity is -113.43% 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 Rainbow Rare Earths (RBWRF) Overvalued in 2026?
Based on GuruFocus' analysis, Rainbow Rare Earths stock appears to be overvalued.
The current stock price of $0.22 is trading 4.9% above its estimated GF Value™ of $0.21.
GuruFocus considers Rainbow Rare Earths to be Fairly Valued.
Key valuation signals for RBWRF:
Return-on-Tangible-Equity: -113.43%
GF Value™: $0.21 vs. price of $0.22 (4.9% above fair value)
No single metric tells the full story. See the RBWRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rainbow Rare Earths Ltd is focused on the development of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition. The company is advancing two projects, Phalaborwa in South Africa and Uberaba in Brazil, which are intended to produce rare earth elements for industrial, energy, and defence applications.
21GF Score
Get the complete analysis for RBWRF
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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