ReeceREECF 84 Return-on-Tangible-Equity is 15.58% as of Dec. 2025, which is 38% below its 10-year median of 25.29. GuruFocus rates REECF with a GF Score™ of 84/100 and a GF Value™ of $12.22 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 153 Industrial Distribution companies, Reece ranks better than 64.71% 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. Reece's annualized net income for the quarter that ended in Dec. 2025 was $192 Mil. Reece's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $1,230 Mil. Therefore, Reece's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 15.58%.
The historical rank and industry rank for Reece's Return-on-Tangible-Equity or its related term are showing as below:
REECF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.59 Med: 25.29 Max: 45.88
Current: 14.59
During the past 13 years, Reece's highest Return-on-Tangible-Equity was 45.88%. The lowest was 14.59%. And the median was 25.29%.
REECF's Return-on-Tangible-Equity is ranked better than 64.71% of 153
companies
in the Industrial Distribution industry
Industry Median: 8.96
vs REECF: 14.59
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.
Reece Return-on-Tangible-Equity Related Terms
Reece Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Reece'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.
REECF vs GWW, FAST, FERG: Return-on-Tangible-Equity Comparison
For the Industrial Distribution subindustry, Reece'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.
Reece Return-on-Tangible-Equity vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Reece's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Reece'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 15.58% mean?
Reece (REECF) has a Return-on-Tangible-Equity of 15.58% 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 Reece and its competitors. This is 38% below median its historical median of 25.29. Over the past decade, Reece's Return-on-Tangible-Equity has ranged from 14.59 to 45.88. According to the industry distribution chart, Reece ranks #54 out of 153 companies in the Industrial Distribution industry, placing it in the top 35.3%.
Is Reece's Return-on-Tangible-Equity too high?
Reece's current Return-on-Tangible-Equity of 15.58% is 38% below median its 10-year median of 25.29. Over the past 10 years, this metric has ranged from a low of 14.59 to a high of 45.88. The Industrial Distribution industry median Return-on-Tangible-Equity is 8.96. Reece's value of 15.58% is 73.9% above this industry median. Based on the distribution chart, Reece ranks #54 out of 153 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, Reece has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reece's Return-on-Tangible-Equity compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Reece ranks #54 out of 153 companies for Return-on-Tangible-Equity. This puts Reece in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.96. Reece's value of 15.58% is 73.9% above this benchmark. Historically, Reece's own Return-on-Tangible-Equity has ranged from 14.59 to 45.88 over the past decade. While the company's 10-year median is 25.29 vs. the industry median of 8.96, Reece 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 an Industrial Distribution company?
The median Return-on-Tangible-Equity among Industrial Distribution companies is 8.96, based on 153 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. Reece's current Return-on-Tangible-Equity of 15.58% is 73.9% 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 Reece and its competitors. For the Industrial Distribution industry, the median Return-on-Tangible-Equity is 8.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reece's current Return-on-Tangible-Equity is 15.58%, which is 38% below median its own 10-year median of 25.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reece stock overvalued right now?
Based on GuruFocus' analysis, Reece (REECF) is currently considered Modestly Undervalued. The stock's GF Value™ is $12.22, compared to a current price of $9.80 — trading 19.8% below its estimated fair value. The current Return-on-Tangible-Equity is 15.58%, which is 38% below median its 10-year median of 25.29 and 73.9% above the Industrial Distribution industry median of 8.96. Reece's overall GF Score™ is 84/100 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 Reece (REECF), the current Return-on-Tangible-Equity is 15.58% 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 Reece (REECF) Overvalued in 2026?
Based on GuruFocus' analysis, Reece stock appears to be undervalued.
The current stock price of $9.80 is trading 19.8% below its estimated GF Value™ of $12.22.
GuruFocus considers Reece to be Modestly Undervalued.
Key valuation signals for REECF:
Return-on-Tangible-Equity: 15.58% (38% below median its 10-year median of 25.29)
GF Value™: $12.22 vs. price of $9.80 (19.8% below fair value)
Industry Position: 73.9% above the Industrial Distribution median (#54 of 153)
No single metric tells the full story. See the REECF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reece is an Australian distributor of plumbing supplies and bathroom products, with businesses in Australia, New Zealand, and the United States. Reece Australia holds Australia's largest range of individual plumbing stock-keeping units, supporting plumbing needs for general plumbing, bathrooms, kitchens, heating and air conditioning, irrigation, refrigeration, pools, commercial and government projects, and fire services.In the Australia and New Zealand markets, Reece's trade, customers are mostly small to medium plumbing businesses working in the areas of residential repairs, renovations, or new home builds.The US business principally serves plumbers working on commercial and residential construction projects and has a network of almost 300 stores in the southern Sunbelt states.
84GF Score
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