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.
Universal Insurance Holdings Return-on-Tangible-Asset Related Terms
Universal Insurance Holdings Return-on-Tangible-Asset 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.
FRA:5UI vs ASIC, SAFT, TRUP: Return-on-Tangible-Asset Comparison
For the Insurance - Property & Casualty subindustry, Universal Insurance Holdings'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.
Universal Insurance Holdings Return-on-Tangible-Asset vs Insurance Industry
For the Insurance industry and Financial Services sector, Universal Insurance Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Universal Insurance Holdings'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 7.80% mean?
Universal Insurance Holdings (FRA:5UI) has a Return-on-Tangible-Asset of 7.80% 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 Universal Insurance Holdings and its competitors. This is 201% above median its historical median of 2.59. According to the industry distribution chart, Universal Insurance Holdings ranks #91 out of 507 companies in the Insurance industry, placing it in the top 17.9%.
Is Universal Insurance Holdings' Return-on-Tangible-Asset too high?
Universal Insurance Holdings' current Return-on-Tangible-Asset of 7.80% is 201% above median its 10-year median of 2.59. The Insurance industry median Return-on-Tangible-Asset is 2.78. Universal Insurance Holdings' value of 7.80% is 180.6% above this industry median. Based on the distribution chart, Universal Insurance Holdings ranks #91 out of 507 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Universal Insurance Holdings has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Universal Insurance Holdings' Return-on-Tangible-Asset compare to ASIC and SAFT?
According to the Insurance industry distribution chart, Universal Insurance Holdings ranks #91 out of 507 companies for Return-on-Tangible-Asset. This places Universal Insurance Holdings in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.78. Universal Insurance Holdings' value of 7.80% is 180.6% above this benchmark. While the company's 10-year median is 2.59 vs. the industry median of 2.78, Universal Insurance Holdings 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-Asset for an Insurance company?
The median Return-on-Tangible-Asset among Insurance companies is 2.78, based on 507 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. Universal Insurance Holdings's current Return-on-Tangible-Asset of 7.80% is 180.6% 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-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 Universal Insurance Holdings and its competitors. For the Insurance industry, the median Return-on-Tangible-Asset is 2.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Insurance Holdings's current Return-on-Tangible-Asset is 7.80%, which is 201% above median its own 10-year median of 2.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Insurance Holdings stock overvalued right now?
Universal Insurance Holdings (FRA:5UI) has a current Return-on-Tangible-Asset of 7.80%. The stock's GF Value™ is €20.16, compared to a current price of €36.40 — trading 80.6% above its estimated fair value. The current Return-on-Tangible-Asset is 7.80%, which is 201% above median its 10-year median of 2.59 and 180.6% above the Insurance industry median of 2.78. Universal Insurance Holdings' overall GF Score™ is 60/100 with 8 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 Universal Insurance Holdings (FRA:5UI), the current Return-on-Tangible-Asset is 7.80% 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 Universal Insurance Holdings (FRA:5UI) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Insurance Holdings stock appears to be overvalued.
The current stock price of €36.40 is trading 80.6% above its estimated GF Value™ of €20.16.
Key valuation signals for FRA:5UI:
Return-on-Tangible-Asset: 7.80% (201% above median its 10-year median of 2.59)
GF Value™: €20.16 vs. price of €36.40 (80.6% above fair value)
Industry Position: 180.6% above the Insurance median (#91 of 507)
No single metric tells the full story. See the FRA:5UI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Insurance Holdings Inc is an insurance holding company. Through its subsidiaries, the company mainly offers property and casualty insurance and value-added insurance services. It develops, markets, and underwrites insurance products for consumers predominantly in the personal residential homeowners lines of business and performs all other insurance-related services for its primary insurance entities, including risk management, claims management, and distribution. The group offers the following types of personal residential insurance: homeowners, renters/tenants, condo unit owners, and dwelling/fire, through an independent agent network and online distribution channels across multiple states in the United States of America.
60GF Score
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