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Lms ComplianceSGX:LMS -4.76%68 Return-on-Tangible-Equity is 23.78% as of Dec. 2025, which is 16% above its 10-year median of 20.42. GuruFocus rates SGX:LMS with a GF Score™ of 68/100 and a GF Value™ of S$0.46 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,008 Business Services companies, Lms Compliance ranks better than 69.44% 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. Lms Compliance's annualized net income for the quarter that ended in Dec. 2025 was S$2.34 Mil. Lms Compliance's average shareholder tangible equity for the quarter that ended in Dec. 2025 was S$9.84 Mil. Therefore, Lms Compliance's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 23.78%.
The historical rank and industry rank for Lms Compliance's Return-on-Tangible-Equity or its related term are showing as below:
SGX:LMS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.49 Med: 20.42 Max: 35.6
Current: 20.43
During the past 7 years, Lms Compliance's highest Return-on-Tangible-Equity was 35.60%. The lowest was 3.49%. And the median was 20.42%.
SGX:LMS's Return-on-Tangible-Equity is ranked better than 69.44% of 1008
companies
in the Business Services industry
Industry Median: 10.7
vs SGX:LMS: 20.43
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.
Lms Compliance Return-on-Tangible-Equity Related Terms
Lms Compliance Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lms Compliance'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.
SGX:LMS vs CTAS, CPRT, ULS: Return-on-Tangible-Equity Comparison
For the Specialty Business Services subindustry, Lms Compliance'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.
Lms Compliance Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, Lms Compliance's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lms Compliance'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 23.78% mean?
Lms Compliance (SGX:LMS) has a Return-on-Tangible-Equity of 23.78% 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 Lms Compliance and its competitors. This is 16% above median its historical median of 20.42. Over the past decade, Lms Compliance's Return-on-Tangible-Equity has ranged from 3.49 to 35.60. According to the industry distribution chart, Lms Compliance ranks #308 out of 1008 companies in the Business Services industry, placing it in the top 30.6%.
Is Lms Compliance's Return-on-Tangible-Equity too high?
Lms Compliance's current Return-on-Tangible-Equity of 23.78% is 16% above median its 10-year median of 20.42. Over the past 10 years, this metric has ranged from a low of 3.49 to a high of 35.60. The Business Services industry median Return-on-Tangible-Equity is 10.70. Lms Compliance's value of 23.78% is 122.2% above this industry median. Based on the distribution chart, Lms Compliance ranks #308 out of 1008 companies in the Business Services industry, which is above the industry midpoint. Overall, Lms Compliance has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lms Compliance's Return-on-Tangible-Equity compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Lms Compliance ranks #308 out of 1008 companies for Return-on-Tangible-Equity. This puts Lms Compliance in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.70. Lms Compliance's value of 23.78% is 122.2% above this benchmark. Historically, Lms Compliance's own Return-on-Tangible-Equity has ranged from 3.49 to 35.60 over the past decade. While the company's 10-year median is 20.42 vs. the industry median of 10.70, Lms Compliance 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.70, based on 1,008 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. Lms Compliance's current Return-on-Tangible-Equity of 23.78% is 122.2% 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 Lms Compliance and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lms Compliance's current Return-on-Tangible-Equity is 23.78%, which is 16% above median its own 10-year median of 20.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lms Compliance stock overvalued right now?
Based on GuruFocus' analysis, Lms Compliance (SGX:LMS) is currently considered Modestly Undervalued. The stock's GF Value™ is S$0.46, compared to a current price of S$0.40 — trading 13% below its estimated fair value. The current Return-on-Tangible-Equity is 23.78%, which is 16% above median its 10-year median of 20.42 and 122.2% above the Business Services industry median of 10.70. Lms Compliance's overall GF Score™ is 68/100 with 4 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 Lms Compliance (SGX:LMS), the current Return-on-Tangible-Equity is 23.78% 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 Lms Compliance (SGX:LMS) Overvalued in 2026?
Based on GuruFocus' analysis, Lms Compliance stock appears to be undervalued.
The current stock price of S$0.40 is trading 13% below its estimated GF Value™ of S$0.46.
GuruFocus considers Lms Compliance to be Modestly Undervalued.
Key valuation signals for SGX:LMS:
Return-on-Tangible-Equity: 23.78% (16% above median its 10-year median of 20.42)
GF Value™: S$0.46 vs. price of S$0.40 (13% below fair value)
Industry Position: 122.2% above the Business Services median (#308 of 1008)
No single metric tells the full story. See the SGX:LMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LMS Compliance Ltd is engaged in investment holding and the development of software and applications related to conformity assessment technology. The Group operates through two segments, with testing and assessment generating the majority of revenue by providing product safety testing and compliance assessment services. Its certification and consultancy services segment provides ISO application, certification, conformity assessment, education, training, and management consultancy. Its products include Aikinz (LIMS), Aizenz (Carbon Accounting System), Aisinz (Global Real-time Surveillance Scheme), and Aihorz solutions such as Slope Monitoring Prevention (SMP), Flood Monitoring Prevention (FMP), and LoRa GPS Emission Tracking (LGET).
68GF Score
Get the complete analysis for SGX:LMS
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