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. Webco Industries's annualized net income for the quarter that ended in Jul. 2023 was $26.6 Mil. Webco Industries's average shareholder tangible equity for the quarter that ended in Jul. 2023 was $247.0 Mil. Therefore, Webco Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Jul. 2023 was 10.79%.
The historical rank and industry rank for Webco Industries's Return-on-Tangible-Equity or its related term are showing as below:
WEBC's Return-on-Tangible-Equity is not ranked *
in the Steel industry.
Industry Median: 4.01 * 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.
Webco Industries Return-on-Tangible-Equity Related Terms
Webco Industries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Webco Industries'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.
WEBC vs ACNT, FRD, LUD: Return-on-Tangible-Equity Comparison
For the Steel subindustry, Webco Industries'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.
Webco Industries Return-on-Tangible-Equity vs Steel Industry
For the Steel industry and Basic Materials sector, Webco Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Webco Industries'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 one times the annual (Jul. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 10.79% mean?
Webco Industries (WEBC) has a Return-on-Tangible-Equity of 10.79% as of Jul. 2023. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Webco Industries and its competitors.
Is Webco Industries' Return-on-Tangible-Equity too high?
Webco Industries' current Return-on-Tangible-Equity is 10.79%. The Steel industry median Return-on-Tangible-Equity is 4.01. Webco Industries' value of 10.79% is 169.1% above this industry median. Overall, Webco Industries has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Webco Industries' Return-on-Tangible-Equity compare to ACNT and FRD?
Webco Industries' Return-on-Tangible-Equity of 10.79% can be compared against companies in the Steel industry. The industry median Return-on-Tangible-Equity is 4.01. Webco Industries' value of 10.79% is 169.1% 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 Steel company?
The median Return-on-Tangible-Equity among Steel companies is 4.01, based on 614 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. Webco Industries's current Return-on-Tangible-Equity of 10.79% is 169.1% 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 Webco Industries and its competitors. For the Steel industry, the median Return-on-Tangible-Equity is 4.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Webco Industries's current Return-on-Tangible-Equity is 10.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Webco Industries stock overvalued right now?
Webco Industries (WEBC) has a current Return-on-Tangible-Equity of 10.79%. The current Return-on-Tangible-Equity is 10.79% and 169.1% above the Steel industry median of 4.01. Webco Industries' 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 Webco Industries (WEBC), the current Return-on-Tangible-Equity is 10.79% as of Jul. 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.
Webco Industries Inc is a specialty manufacturer and seller of high-quality carbon and stainless steel tubing products that are designed to industry and customer specifications. The company's products includes Welded tubing; Cold drawn- Welded and Cold drawn- Seamless. Its value-added services include bending, custom mill length, end formed/swaged, finning, heat treating, packaging, precision cutting, product availability and responsiveness.
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