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MelonXSGO:MELON 39 Return-on-Tangible-Equity is 8.78% as of Mar. 2026, which is 174% above its 10-year median of 3.21. GuruFocus rates XSGO:MELON with a GF Score™ of 39/100 and a GF Value™ of CLP0.39 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 399 Building Materials companies, Melon ranks better than 65.91% 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. Melon's annualized net income for the quarter that ended in Mar. 2026 was CLP12,146 Mil. Melon's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CLP138,339 Mil. Therefore, Melon's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.78%.
The historical rank and industry rank for Melon's Return-on-Tangible-Equity or its related term are showing as below:
XSGO:MELON'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -9.94 Med: 3.21 Max: 13.64
Current: 9.08
During the past 13 years, Melon's highest Return-on-Tangible-Equity was 13.64%. The lowest was -9.94%. And the median was 3.21%.
XSGO:MELON's Return-on-Tangible-Equity is ranked better than 65.91% of 399
companies
in the Building Materials industry
Industry Median: 5.08
vs XSGO:MELON: 9.08
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.
Melon Return-on-Tangible-Equity Related Terms
Melon Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Melon'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.
XSGO:MELON vs CRH, VMC, MLM: Return-on-Tangible-Equity Comparison
For the Building Materials subindustry, Melon'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.
Melon Return-on-Tangible-Equity vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Melon's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Melon'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 8.78% mean?
Melon (XSGO:MELON) has a Return-on-Tangible-Equity of 8.78% 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 Melon and its competitors. This is 174% above median its historical median of 3.21. According to the industry distribution chart, Melon ranks #136 out of 399 companies in the Building Materials industry, placing it in the top 34.1%.
Is Melon's Return-on-Tangible-Equity too high?
Melon's current Return-on-Tangible-Equity of 8.78% is 174% above median its 10-year median of 3.21. The Building Materials industry median Return-on-Tangible-Equity is 5.08. Melon's value of 8.78% is 72.8% above this industry median. Based on the distribution chart, Melon ranks #136 out of 399 companies in the Building Materials industry, which is above the industry midpoint. Overall, Melon has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Melon's Return-on-Tangible-Equity compare to CRH and VMC?
According to the Building Materials industry distribution chart, Melon ranks #136 out of 399 companies for Return-on-Tangible-Equity. This puts Melon in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.08. Melon's value of 8.78% is 72.8% above this benchmark. While the company's 10-year median is 3.21 vs. the industry median of 5.08, Melon 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 a Building Materials company?
The median Return-on-Tangible-Equity among Building Materials companies is 5.08, based on 399 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. Melon's current Return-on-Tangible-Equity of 8.78% is 72.8% 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 Melon and its competitors. For the Building Materials industry, the median Return-on-Tangible-Equity is 5.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melon's current Return-on-Tangible-Equity is 8.78%, which is 174% above median its own 10-year median of 3.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melon stock overvalued right now?
Based on GuruFocus' analysis, Melon (XSGO:MELON) is currently considered Significantly Overvalued. The stock's GF Value™ is CLP0.39, compared to a current price of CLP0.68 — trading 74.4% above its estimated fair value. The current Return-on-Tangible-Equity is 8.78%, which is 174% above median its 10-year median of 3.21 and 72.8% above the Building Materials industry median of 5.08. Melon's overall GF Score™ is 39/100 with 6 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 Melon (XSGO:MELON), the current Return-on-Tangible-Equity is 8.78% 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 Melon (XSGO:MELON) Overvalued in 2026?
Based on GuruFocus' analysis, Melon stock appears to be overvalued.
The current stock price of CLP0.68 is trading 74.4% above its estimated GF Value™ of CLP0.39.
GuruFocus considers Melon to be Significantly Overvalued.
Key valuation signals for XSGO:MELON:
Return-on-Tangible-Equity: 8.78% (174% above median its 10-year median of 3.21)
GF Value™: CLP0.39 vs. price of CLP0.68 (74.4% above fair value)
Industry Position: 72.8% above the Building Materials median (#136 of 399)
No single metric tells the full story. See the XSGO:MELON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Melon SA is a Chile-based building materials firm. It is engaged in manufacturing, marketing, and supplying cement, ready-mixed concrete, and aggregates to companies distributing construction materials, construction companies linked to the real estate, infrastructure, civil works and mining sectors, and concrete companies. Along with its subsidiaries, the company operates in the following segments; Cements and Aggregates. A majority of its revenue is generated from the Cements segment which includes the production, marketing, and distribution of different types of Portland and pozzolanic cement and ready-mixed concrete. The Aggregates segment represents the extraction, production, and distribution of aggregates and their products such as sand, gravel, and other products.
39GF Score
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