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Mercantile BankDHA:MERCANBANK +1.41%67 Return-on-Tangible-Asset is 0.27% as of Mar. 2026, which is 62% below its 10-year median of 0.71. GuruFocus rates DHA:MERCANBANK with a GF Score™ of 67/100 and a GF Value™ of BDT8.32 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,525 Banks companies, Mercantile Bank ranks worse than 92.59% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Mercantile Bank's annualizedNet Income for the quarter that ended in Mar. 2026 was BDT1,301 Mil. Mercantile Bank's average total tangible assets for the quarter that ended in Mar. 2026 was BDT476,523 Mil. Therefore, Mercantile Bank's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 0.27%.
The historical rank and industry rank for Mercantile Bank's Return-on-Tangible-Asset or its related term are showing as below:
DHA:MERCANBANK'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.13 Med: 0.71 Max: 1.3
Current: 0.13
During the past 11 years, Mercantile Bank's highest Return-on-Tangible-Asset was 1.30%. The lowest was 0.13%. And the median was 0.71%.
DHA:MERCANBANK's Return-on-Tangible-Asset is ranked worse than 92.59% of 1525
companies
in the Banks industry
Industry Median: 1.03
vs DHA:MERCANBANK: 0.13
Mercantile Bank (DHA:MERCANBANK) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Mercantile Bank Return-on-Tangible-Asset Related Terms
Mercantile Bank Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Mercantile Bank's Return-on-Tangible-Asset 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.
Mercantile Bank Return-on-Tangible-Asset Competitor Comparison
For the Banks - Regional subindustry, Mercantile Bank's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Mercantile Bank Return-on-Tangible-Asset vs Banks Industry
For the Banks industry and Financial Services sector, Mercantile Bank's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Mercantile Bank's Return-on-Tangible-Asset 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-Asset, the net income of the last fiscal year and the average total tangible assets 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.
What does a Return-on-Tangible-Asset of 0.27% mean?
Mercantile Bank (DHA:MERCANBANK) has a Return-on-Tangible-Asset of 0.27% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Mercantile Bank and its competitors. This is 62% below median its historical median of 0.71. Over the past decade, Mercantile Bank's Return-on-Tangible-Asset has ranged from 0.13 to 1.30. According to the industry distribution chart, Mercantile Bank ranks #1412 out of 1525 companies in the Banks industry, placing it in the top 92.6%.
Is Mercantile Bank's Return-on-Tangible-Asset too high?
Mercantile Bank's current Return-on-Tangible-Asset of 0.27% is 62% below median its 10-year median of 0.71. Over the past 10 years, this metric has ranged from a low of 0.13 to a high of 1.30. The Banks industry median Return-on-Tangible-Asset is 1.03. Mercantile Bank's value of 0.27% is 73.8% below this industry median. Based on the distribution chart, Mercantile Bank ranks #1412 out of 1525 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Mercantile Bank has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mercantile Bank's Return-on-Tangible-Asset compare to competitors?
According to the Banks industry distribution chart, Mercantile Bank ranks #1412 out of 1525 companies for Return-on-Tangible-Asset. This places Mercantile Bank in the lower half of its industry. The industry median Return-on-Tangible-Asset is 1.03. Mercantile Bank's value of 0.27% is 73.8% below this benchmark. Historically, Mercantile Bank's own Return-on-Tangible-Asset has ranged from 0.13 to 1.30 over the past decade. While the company's 10-year median is 0.71 vs. the industry median of 1.03, Mercantile Bank has consistently been below 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-Asset for a Banks company?
The median Return-on-Tangible-Asset among Banks companies is 1.03, based on 1,525 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mercantile Bank's current Return-on-Tangible-Asset of 0.27% is 73.8% below 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-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Mercantile Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Asset is 1.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercantile Bank's current Return-on-Tangible-Asset is 0.27%, which is 62% below median its own 10-year median of 0.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercantile Bank stock overvalued right now?
Based on GuruFocus' analysis, Mercantile Bank (DHA:MERCANBANK) is currently considered Modestly Undervalued. The stock's GF Value™ is BDT8.32, compared to a current price of BDT7.20 — trading 13.5% below its estimated fair value. The current Return-on-Tangible-Asset is 0.27%, which is 62% below median its 10-year median of 0.71 and 73.8% below the Banks industry median of 1.03. Mercantile Bank's overall GF Score™ is 67/100 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-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Mercantile Bank (DHA:MERCANBANK), the current Return-on-Tangible-Asset is 0.27% 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 Mercantile Bank (DHA:MERCANBANK) Overvalued in 2026?
Based on GuruFocus' analysis, Mercantile Bank stock appears to be undervalued.
The current stock price of BDT7.20 is trading 13.5% below its estimated GF Value™ of BDT8.32.
GuruFocus considers Mercantile Bank to be Modestly Undervalued.
Key valuation signals for DHA:MERCANBANK:
Return-on-Tangible-Asset: 0.27% (62% below median its 10-year median of 0.71)
GF Value™: BDT8.32 vs. price of BDT7.20 (13.5% below fair value)
Industry Position: 73.8% below the Banks median (#1412 of 1525)
No single metric tells the full story. See the DHA:MERCANBANK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercantile Bank PLC is a commercial bank that engages in providing banking and financial services. It offers a range of services such as SME financing, Retail Banking, Corporate Banking, Foreign Trade, NRB banking, Treasury instruments services, and E-banking, among others. Its operating segments comprise Commercial Banking including Off-shore Banking Units, Islamic Banking Window Operations, Mercantile Bank Securities Limited; MBL Assets Management Limited, and Mercantile Exchange House (UK) Ltd.
67GF Score
Get the complete analysis for DHA:MERCANBANK
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