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. United American's annualized net income for the quarter that ended in Mar. 2008 was $0.26 Mil. United American's average shareholder tangible equity for the quarter that ended in Mar. 2008 was $0.70 Mil. Therefore, United American's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2008 was 37.69%.
The historical rank and industry rank for United American's Return-on-Tangible-Equity or its related term are showing as below:
UAMA's Return-on-Tangible-Equity is not ranked *
in the Telecommunication Services industry.
Industry Median: 14.53 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
United American (OTCPK:UAMA) 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.
United American Return-on-Tangible-Equity Related Terms
United American Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for United American'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.
UAMA vs MTSL: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, United American'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.
United American Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, United American's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where United American'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. 2008) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 37.69% mean?
United American (UAMA) has a Return-on-Tangible-Equity of 37.69% as of Mar. 2008. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on United American and its competitors.
Is United American's Return-on-Tangible-Equity too high?
United American's current Return-on-Tangible-Equity is 37.69%. The Telecommunication Services industry median Return-on-Tangible-Equity is 14.53. United American's value of 37.69% is 159.4% above this industry median.
How does United American's Return-on-Tangible-Equity compare to MTSL?
United American's Return-on-Tangible-Equity of 37.69% can be compared against companies in the Telecommunication Services industry. The industry median Return-on-Tangible-Equity is 14.53. United American's value of 37.69% is 159.4% above this benchmark. 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 Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.53, based on 325 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. United American's current Return-on-Tangible-Equity of 37.69% is 159.4% 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 United American and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United American's current Return-on-Tangible-Equity is 37.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United American stock overvalued right now?
United American (UAMA) has a current Return-on-Tangible-Equity of 37.69%. The current Return-on-Tangible-Equity is 37.69% and 159.4% above the Telecommunication Services industry median of 14.53. 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 United American (UAMA), the current Return-on-Tangible-Equity is 37.69% as of Mar. 2008. 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.
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