Lynas Rare EarthsASX:LYC +4.03%78 Return-on-Tangible-Equity is 5.62% as of Dec. 2025, which is 44% below its 10-year median of 10.08. GuruFocus rates ASX:LYC with a GF Score™ of 78/100 and a GF Value™ of A$13.70 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,378 Metals & Mining companies, Lynas Rare Earths ranks better than 75.48% 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. Lynas Rare Earths's annualized net income for the quarter that ended in Dec. 2025 was A$160.4 Mil. Lynas Rare Earths's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$2,856.9 Mil. Therefore, Lynas Rare Earths's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 5.62%.
The historical rank and industry rank for Lynas Rare Earths's Return-on-Tangible-Equity or its related term are showing as below:
ASX:LYC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -74.04 Med: 10.08 Max: 39.65
Current: 3.07
During the past 13 years, Lynas Rare Earths's highest Return-on-Tangible-Equity was 39.65%. The lowest was -74.04%. And the median was 10.08%.
ASX:LYC's Return-on-Tangible-Equity is ranked better than 75.48% of 2378
companies
in the Metals & Mining industry
Industry Median: -16.18
vs ASX:LYC: 3.07
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.
Lynas Rare Earths Return-on-Tangible-Equity Related Terms
Lynas Rare Earths Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lynas Rare Earths'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.
For the Other Industrial Metals & Mining subindustry, Lynas Rare Earths'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.
Lynas Rare Earths Return-on-Tangible-Equity vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Lynas Rare Earths's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lynas Rare Earths'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 (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 5.62% mean?
Lynas Rare Earths (ASX:LYC) has a Return-on-Tangible-Equity of 5.62% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lynas Rare Earths and its competitors. This is 44% below median its historical median of 10.08. According to the industry distribution chart, Lynas Rare Earths ranks #583 out of 2378 companies in the Metals & Mining industry, placing it in the top 24.5%.
Is Lynas Rare Earths' Return-on-Tangible-Equity too high?
Lynas Rare Earths' current Return-on-Tangible-Equity of 5.62% is 44% below median its 10-year median of 10.08. Based on the distribution chart, Lynas Rare Earths ranks #583 out of 2378 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Lynas Rare Earths has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lynas Rare Earths' Return-on-Tangible-Equity compare to competitors?
According to the Metals & Mining industry distribution chart, Lynas Rare Earths ranks #583 out of 2378 companies for Return-on-Tangible-Equity. This places Lynas Rare Earths in the top 25% of its industry — outperforming the majority of peers. 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 Metals & Mining company?
A good Return-on-Tangible-Equity depends on the Metals & Mining industry context. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Lynas Rare Earths and its competitors. Lynas Rare Earths's current Return-on-Tangible-Equity is 5.62%, which is 44% below median its own 10-year median of 10.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lynas Rare Earths stock overvalued right now?
Based on GuruFocus' analysis, Lynas Rare Earths (ASX:LYC) is currently considered Significantly Overvalued. The stock's GF Value™ is A$13.70, compared to a current price of A$19.34 — trading 41.2% above its estimated fair value. The current Return-on-Tangible-Equity is 5.62%, which is 44% below median its 10-year median of 10.08. Lynas Rare Earths' overall GF Score™ is 78/100 with 3 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 Lynas Rare Earths (ASX:LYC), the current Return-on-Tangible-Equity is 5.62% as of Dec. 2025. 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 Lynas Rare Earths (ASX:LYC) Overvalued in 2026?
Based on GuruFocus' analysis, Lynas Rare Earths stock appears to be overvalued.
The current stock price of A$19.34 is trading 41.2% above its estimated GF Value™ of A$13.70.
GuruFocus considers Lynas Rare Earths to be Significantly Overvalued.
Key valuation signals for ASX:LYC:
Return-on-Tangible-Equity: 5.62% (44% below median its 10-year median of 10.08)
GF Value™: A$13.70 vs. price of A$19.34 (41.2% above fair value)
No single metric tells the full story. See the ASX:LYC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lynas is the largest rare-earth producer outside China. It owns the high-grade Mount Weld deposit in Western Australia and rare-earth processing facilities in Kalgoorlie and Malaysia. We estimate that Mount Weld is the world's lowest-cost producer of separated neodymium and praseodymium, light rare-earth materials, which are sold to customers in the form of neodymium-praseodymium oxide with a mine life exceeding 20 years. As of December 2025, Lynas is also the only producer of separated heavy rare-earth dysprosium and terbium outside China. The company is further expanding NdPr capacity while diversifying into producing additional separated rare-earth materials, including samarium. It also intends to move downstream into rare-earth metal and magnet production.
78GF Score
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