Reliance WorldwideRLLWF 84 Return-on-Tangible-Equity is 46.83% as of Dec. 2025, which is 50% below its 10-year median of 93.06. GuruFocus rates RLLWF with a GF Score™ of 84/100 and a GF Value™ of $2.91 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,705 Construction companies, Reliance Worldwide ranks better than 90.73% 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. Reliance Worldwide's annualized net income for the quarter that ended in Dec. 2025 was $87 Mil. Reliance Worldwide's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $187 Mil. Therefore, Reliance Worldwide's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 46.83%.
The historical rank and industry rank for Reliance Worldwide's Return-on-Tangible-Equity or its related term are showing as below:
RLLWF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 47.5 Med: 93.06 Max: 163.3
Current: 58.77
During the past 9 years, Reliance Worldwide's highest Return-on-Tangible-Equity was 163.30%. The lowest was 47.50%. And the median was 93.06%.
RLLWF's Return-on-Tangible-Equity is ranked better than 90.73% of 1705
companies
in the Construction industry
Industry Median: 8.25
vs RLLWF: 58.77
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.
Reliance Worldwide Return-on-Tangible-Equity Related Terms
Reliance Worldwide Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Reliance Worldwide'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.
RLLWF vs TT, JCI, CARR: Return-on-Tangible-Equity Comparison
For the Building Products & Equipment subindustry, Reliance Worldwide'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.
Reliance Worldwide Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Reliance Worldwide's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Reliance Worldwide'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 46.83% mean?
Reliance Worldwide (RLLWF) has a Return-on-Tangible-Equity of 46.83% 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 Reliance Worldwide and its competitors. This is 50% below median its historical median of 93.06. Over the past decade, Reliance Worldwide's Return-on-Tangible-Equity has ranged from 47.50 to 163.30. According to the industry distribution chart, Reliance Worldwide ranks #158 out of 1705 companies in the Construction industry, placing it in the top 9.3%.
Is Reliance Worldwide's Return-on-Tangible-Equity too high?
Reliance Worldwide's current Return-on-Tangible-Equity of 46.83% is 50% below median its 10-year median of 93.06. Over the past 10 years, this metric has ranged from a low of 47.50 to a high of 163.30. The Construction industry median Return-on-Tangible-Equity is 8.25. Reliance Worldwide's value of 46.83% is 467.6% above this industry median. Based on the distribution chart, Reliance Worldwide ranks #158 out of 1705 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Reliance Worldwide has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reliance Worldwide's Return-on-Tangible-Equity compare to TT and JCI?
According to the Construction industry distribution chart, Reliance Worldwide ranks #158 out of 1705 companies for Return-on-Tangible-Equity. This places Reliance Worldwide in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.25. Reliance Worldwide's value of 46.83% is 467.6% above this benchmark. Historically, Reliance Worldwide's own Return-on-Tangible-Equity has ranged from 47.50 to 163.30 over the past decade. While the company's 10-year median is 93.06 vs. the industry median of 8.25, Reliance Worldwide 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.25, based on 1,705 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. Reliance Worldwide's current Return-on-Tangible-Equity of 46.83% is 467.6% 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 Reliance Worldwide and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reliance Worldwide's current Return-on-Tangible-Equity is 46.83%, which is 50% below median its own 10-year median of 93.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reliance Worldwide stock overvalued right now?
Based on GuruFocus' analysis, Reliance Worldwide (RLLWF) is currently considered Modestly Undervalued. The stock's GF Value™ is $2.91, compared to a current price of $2.50 — trading 14.1% below its estimated fair value. The current Return-on-Tangible-Equity is 46.83%, which is 50% below median its 10-year median of 93.06 and 467.6% above the Construction industry median of 8.25. Reliance Worldwide's overall GF Score™ is 84/100 with 6 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 Reliance Worldwide (RLLWF), the current Return-on-Tangible-Equity is 46.83% 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 Reliance Worldwide (RLLWF) Overvalued in 2026?
Based on GuruFocus' analysis, Reliance Worldwide stock appears to be undervalued.
The current stock price of $2.50 is trading 14.1% below its estimated GF Value™ of $2.91.
GuruFocus considers Reliance Worldwide to be Modestly Undervalued.
Key valuation signals for RLLWF:
Return-on-Tangible-Equity: 46.83% (50% below median its 10-year median of 93.06)
GF Value™: $2.91 vs. price of $2.50 (14.1% below fair value)
Industry Position: 467.6% above the Construction median (#158 of 1705)
No single metric tells the full story. See the RLLWF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reliance manufactures behind-the-wall plumbing products, which include fittings, pipes, valves, fluid dispensers, pipe systems, and appliance connectors. Its main segment is the US, which comprises about two-thirds of our midcycle EBITDA estimates. Other segments include EMEA and the Asia-Pacific, which contribute about 15% and 20%, respectively, of our midcycle EBITDA estimates. The firm is best known for its push-to-connect products, including the brands SharkBite in the US and John Guest in the United Kingdom. Reliance's primary target segment is the do-it-yourself market. Smaller sales segments include residential and commercial construction, and hot water system manufacturers, which use some Reliance products in manufacturing.
84GF Score
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