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Western Midstream Partners LPWES +1.08%85 Return-on-Tangible-Equity is 70.21% as of Jun. 2026, which is 51% above its 10-year median of 46.59. GuruFocus rates WES with a GF Score™ of 85/100 and a GF Value™ of $43.92 (Fairly Valued). The stock has 9 warning signs investors should review. Among 950 Oil & Gas companies, Western Midstream Partners LP ranks better than 92.74% 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. Western Midstream Partners LP's annualized net income for the quarter that ended in Jun. 2026 was $1,614 Mil. Western Midstream Partners LP's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $2,299 Mil. Therefore, Western Midstream Partners LP's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 70.21%.
The historical rank and industry rank for Western Midstream Partners LP's Return-on-Tangible-Equity or its related term are showing as below:
WES'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 26.89 Med: 46.59 Max: 1032.74
Current: 48.82
During the past 13 years, Western Midstream Partners LP's highest Return-on-Tangible-Equity was 1,032.74%. The lowest was 26.89%. And the median was 46.59%.
WES's Return-on-Tangible-Equity is ranked better than 92.74% of 950
companies
in the Oil & Gas industry
Industry Median: 6.77
vs WES: 48.82
Western Midstream Partners LP (NYSE:WES) 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.
Western Midstream Partners LP Return-on-Tangible-Equity Related Terms
Western Midstream Partners LP Return-on-Tangible-Equity Historical Data
* 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.
Western Midstream Partners LP Return-on-Tangible-Equity Chart
WES vs PAA, DTM, AM: Return-on-Tangible-Equity Comparison
For the Oil & Gas Midstream subindustry, Western Midstream Partners LP'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.
Western Midstream Partners LP Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Western Midstream Partners LP's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Western Midstream Partners LP'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 70.21% mean?
Western Midstream Partners LP (WES) has a Return-on-Tangible-Equity of 70.21% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Western Midstream Partners LP and its competitors. This is 51% above median its historical median of 46.59. Over the past decade, Western Midstream Partners LP's Return-on-Tangible-Equity has ranged from 26.89 to 1,032.74. According to the industry distribution chart, Western Midstream Partners LP ranks #69 out of 950 companies in the Oil & Gas industry, placing it in the top 7.3%.
Is Western Midstream Partners LP's Return-on-Tangible-Equity too high?
Western Midstream Partners LP's current Return-on-Tangible-Equity of 70.21% is 51% above median its 10-year median of 46.59. Over the past 10 years, this metric has ranged from a low of 26.89 to a high of 1,032.74. The Oil & Gas industry median Return-on-Tangible-Equity is 6.77. Western Midstream Partners LP's value of 70.21% is 937.1% above this industry median. Based on the distribution chart, Western Midstream Partners LP ranks #69 out of 950 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Western Midstream Partners LP has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Western Midstream Partners LP's Return-on-Tangible-Equity compare to PAA and DTM?
According to the Oil & Gas industry distribution chart, Western Midstream Partners LP ranks #69 out of 950 companies for Return-on-Tangible-Equity. This places Western Midstream Partners LP in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.77. Western Midstream Partners LP's value of 70.21% is 937.1% above this benchmark. Historically, Western Midstream Partners LP's own Return-on-Tangible-Equity has ranged from 26.89 to 1,032.74 over the past decade. While the company's 10-year median is 46.59 vs. the industry median of 6.77, Western Midstream Partners LP 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 Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.77, based on 950 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. Western Midstream Partners LP's current Return-on-Tangible-Equity of 70.21% is 937.1% 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 Western Midstream Partners LP and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Midstream Partners LP's current Return-on-Tangible-Equity is 70.21%, which is 51% above median its own 10-year median of 46.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Midstream Partners LP stock overvalued right now?
Based on GuruFocus' analysis, Western Midstream Partners LP (WES) is currently considered Fairly Valued. The stock's GF Value™ is $43.92, compared to a current price of $46.65 — trading 6.2% above its estimated fair value. The current Return-on-Tangible-Equity is 70.21%, which is 51% above median its 10-year median of 46.59 and 937.1% above the Oil & Gas industry median of 6.77. Western Midstream Partners LP's overall GF Score™ is 85/100 with 9 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 Western Midstream Partners LP (WES), the current Return-on-Tangible-Equity is 70.21% as of Jun. 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 Western Midstream Partners LP (WES) Overvalued in 2026?
Based on GuruFocus' analysis, Western Midstream Partners LP stock appears to be overvalued.
The current stock price of $46.65 is trading 6.2% above its estimated GF Value™ of $43.92.
GuruFocus considers Western Midstream Partners LP to be Fairly Valued.
Key valuation signals for WES:
Return-on-Tangible-Equity: 70.21% (51% above median its 10-year median of 46.59)
GF Value™: $43.92 vs. price of $46.65 (6.2% above fair value)
Industry Position: 937.1% above the Oil & Gas median (#69 of 950)
No single metric tells the full story. See the WES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Midstream Partners LP is a USA-based company which own, operate, acquire and develop midstream energy assets. The company through its subsidiary is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, NGLs and crude oil. It owns or has investments in assets located in the Rocky Mountains (Colorado, Utah, and Wyoming), the Mid-Continent (Kansas and Oklahoma) and Texas.
85GF Score
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