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. Sprout Tiny Homes's annualized net income for the quarter that ended in Mar. 2023 was $-0.84 Mil. Sprout Tiny Homes's average shareholder tangible equity for the quarter that ended in Mar. 2023 was $-5.81 Mil. Therefore, Sprout Tiny Homes's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2023 was N/A%.
The historical rank and industry rank for Sprout Tiny Homes's Return-on-Tangible-Equity or its related term are showing as below:
STHI's Return-on-Tangible-Equity is not ranked *
in the Homebuilding & Construction industry.
Industry Median: 8.37 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Sprout Tiny Homes (OTCPK:STHI) Return-on-Tangible-Equity Explanation
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.
Sprout Tiny Homes Return-on-Tangible-Equity Related Terms
Sprout Tiny Homes Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sprout Tiny Homes'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.
STHI vs DREM, DHI, LEN: Return-on-Tangible-Equity Comparison
For the Residential Construction subindustry, Sprout Tiny Homes'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.
Sprout Tiny Homes Return-on-Tangible-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Sprout Tiny Homes's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sprout Tiny Homes'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 four times the quarterly (Mar. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 0.00% mean?
Sprout Tiny Homes (STHI) has a Return-on-Tangible-Equity of 0.00% as of Mar. 2023. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sprout Tiny Homes and its competitors.
Is Sprout Tiny Homes' Return-on-Tangible-Equity too high?
Sprout Tiny Homes' current Return-on-Tangible-Equity is 0.00%. Overall, Sprout Tiny Homes has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Sprout Tiny Homes' Return-on-Tangible-Equity compare to DREM and DHI?
Sprout Tiny Homes' Return-on-Tangible-Equity of 0.00% can be compared against companies in the Homebuilding & Construction industry. The industry median Return-on-Tangible-Equity is 8.37. 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 Homebuilding & Construction company?
The median Return-on-Tangible-Equity among Homebuilding & Construction companies is 8.37, based on 93 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. 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 Sprout Tiny Homes and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Equity is 8.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprout Tiny Homes's current Return-on-Tangible-Equity is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sprout Tiny Homes stock overvalued right now?
Sprout Tiny Homes (STHI) has a current Return-on-Tangible-Equity of 0.00%. The current Return-on-Tangible-Equity is 0.00%. Sprout Tiny Homes' overall GF Score™ is 12/100. 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 Sprout Tiny Homes (STHI), the current Return-on-Tangible-Equity is 0.00% as of Mar. 2023. 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.
Sprout Tiny Homes Inc is engaged in the design, development, and manufacture of zero energy ready tiny homes with chemical-free interiors. The company focuses on producing modular and mobile housing solutions, including workforce housing, affordable housing, and custom-built homes, along with related design and consulting services.
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