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. KDM Shipping's annualized net income for the quarter that ended in Jun. 2018 was zł21.9 Mil. KDM Shipping's average shareholder tangible equity for the quarter that ended in Jun. 2018 was zł122.9 Mil. Therefore, KDM Shipping's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2018 was 17.80%.
The historical rank and industry rank for KDM Shipping's Return-on-Tangible-Equity or its related term are showing as below:
WAR:KDM's Return-on-Tangible-Equity is not ranked *
in the Transportation industry.
Industry Median: 8.97 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
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.
KDM Shipping Return-on-Tangible-Equity Related Terms
KDM Shipping Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for KDM Shipping'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.
WAR:KDM vs ESEA, GLBS, SHIP: Return-on-Tangible-Equity Comparison
For the Marine Shipping subindustry, KDM Shipping'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.
KDM Shipping Return-on-Tangible-Equity vs Transportation Industry
For the Transportation industry and Industrials sector, KDM Shipping's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where KDM Shipping'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 (Jun. 2018) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 17.80% mean?
KDM Shipping (WAR:KDM) has a Return-on-Tangible-Equity of 17.80% as of Jun. 2018. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on KDM Shipping and its competitors.
Is KDM Shipping's Return-on-Tangible-Equity too high?
KDM Shipping's current Return-on-Tangible-Equity is 17.80%. The Transportation industry median Return-on-Tangible-Equity is 8.97. KDM Shipping's value of 17.80% is 98.4% above this industry median.
How does KDM Shipping's Return-on-Tangible-Equity compare to ESEA and GLBS?
KDM Shipping's Return-on-Tangible-Equity of 17.80% can be compared against companies in the Transportation industry. The industry median Return-on-Tangible-Equity is 8.97. KDM Shipping's value of 17.80% is 98.4% 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 Transportation company?
The median Return-on-Tangible-Equity among Transportation companies is 8.97, based on 976 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. KDM Shipping's current Return-on-Tangible-Equity of 17.80% is 98.4% 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 KDM Shipping and its competitors. For the Transportation industry, the median Return-on-Tangible-Equity is 8.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KDM Shipping's current Return-on-Tangible-Equity is 17.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KDM Shipping stock overvalued right now?
KDM Shipping (WAR:KDM) has a current Return-on-Tangible-Equity of 17.80%. The current Return-on-Tangible-Equity is 17.80% and 98.4% above the Transportation industry median of 8.97. 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 KDM Shipping (WAR:KDM), the current Return-on-Tangible-Equity is 17.80% as of Jun. 2018. 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.
KDM Shipping PLC is engaged in the shipping industry. It mainly focuses on the bulk river-sea freight in the Black, Azov and Mediterranean Sea regions. In addition, it is engaged in cargo freight, ship repair, and trading in grain, corn, oil and barley. The principal cargo of the company includes Grain, Metal Scrap, Sunflower seed meal, Bran, Fertilizers, and Cement.
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