Finning InternationalTSX:FTT +0.95%80 Return-on-Tangible-Equity is 20.17% as of Mar. 2026, which is 8% above its 10-year median of 18.73. GuruFocus rates TSX:FTT with a GF Score™ of 80/100 and a GF Value™ of C$49.02 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 154 Industrial Distribution companies, Finning International ranks better than 79.22% 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. Finning International's annualized net income for the quarter that ended in Mar. 2026 was C$484 Mil. Finning International's average shareholder tangible equity for the quarter that ended in Mar. 2026 was C$2,400 Mil. Therefore, Finning International's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 20.17%.
The historical rank and industry rank for Finning International's Return-on-Tangible-Equity or its related term are showing as below:
TSX:FTT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.84 Med: 18.73 Max: 30.6
Current: 29.52
During the past 13 years, Finning International's highest Return-on-Tangible-Equity was 30.60%. The lowest was 3.84%. And the median was 18.73%.
TSX:FTT's Return-on-Tangible-Equity is ranked better than 79.22% of 154
companies
in the Industrial Distribution industry
Industry Median: 9.02
vs TSX:FTT: 29.52
Finning International (TSX:FTT) 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.
Finning International Return-on-Tangible-Equity Related Terms
Finning International Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Finning International'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.
Finning International Return-on-Tangible-Equity Chart
TSX:FTT vs GWW, FAST, FERG: Return-on-Tangible-Equity Comparison
For the Industrial Distribution subindustry, Finning International'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.
Finning International Return-on-Tangible-Equity vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Finning International's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Finning International'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. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 20.17% mean?
Finning International (TSX:FTT) has a Return-on-Tangible-Equity of 20.17% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Finning International and its competitors. This is near median its historical median of 18.73. Over the past decade, Finning International's Return-on-Tangible-Equity has ranged from 3.84 to 30.60. According to the industry distribution chart, Finning International ranks #32 out of 154 companies in the Industrial Distribution industry, placing it in the top 20.8%.
Is Finning International's Return-on-Tangible-Equity too high?
Finning International's current Return-on-Tangible-Equity of 20.17% is near median its 10-year median of 18.73. Over the past 10 years, this metric has ranged from a low of 3.84 to a high of 30.60. The Industrial Distribution industry median Return-on-Tangible-Equity is 9.02. Finning International's value of 20.17% is 123.6% above this industry median. Based on the distribution chart, Finning International ranks #32 out of 154 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Finning International has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Finning International's Return-on-Tangible-Equity compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Finning International ranks #32 out of 154 companies for Return-on-Tangible-Equity. This places Finning International in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.02. Finning International's value of 20.17% is 123.6% above this benchmark. Historically, Finning International's own Return-on-Tangible-Equity has ranged from 3.84 to 30.60 over the past decade. While the company's 10-year median is 18.73 vs. the industry median of 9.02, Finning International 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 9.02, based on 154 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. Finning International's current Return-on-Tangible-Equity of 20.17% is 123.6% 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 Finning International and its competitors. For the Industrial Distribution industry, the median Return-on-Tangible-Equity is 9.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Finning International's current Return-on-Tangible-Equity is 20.17%, which is near median its own 10-year median of 18.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Finning International stock overvalued right now?
Based on GuruFocus' analysis, Finning International (TSX:FTT) is currently considered Significantly Overvalued. The stock's GF Value™ is C$49.02, compared to a current price of C$99.31 — trading 102.6% above its estimated fair value. The current Return-on-Tangible-Equity is 20.17%, which is near median its 10-year median of 18.73 and 123.6% above the Industrial Distribution industry median of 9.02. Finning International's overall GF Score™ is 80/100 with 7 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 Finning International (TSX:FTT), the current Return-on-Tangible-Equity is 20.17% as of Mar. 2026. 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 Finning International (TSX:FTT) Overvalued in 2026?
Based on GuruFocus' analysis, Finning International stock appears to be overvalued.
The current stock price of C$99.31 is trading 102.6% above its estimated GF Value™ of C$49.02.
GuruFocus considers Finning International to be Significantly Overvalued.
Key valuation signals for TSX:FTT:
Return-on-Tangible-Equity: 20.17% (near median its 10-year median of 18.73)
GF Value™: C$49.02 vs. price of C$99.31 (102.6% above fair value)
Industry Position: 123.6% above the Industrial Distribution median (#32 of 154)
No single metric tells the full story. See the TSX:FTT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Finning International Inc is a dealer and distributor of heavy-duty machinery and parts of the Caterpillar brand. The company sells and rents Caterpillar machinery to the mining, construction, petroleum, forestry, and power system application industries. Finning International further provides parts and services for equipment and engines to its customers via its owned distribution network and buys and sells used equipment domestically and internationally after reconditioning or rebuilding the machinery. The company operates in Canada, Chile, UK, Argentina and Others.
80GF Score
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