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Definity FinancialFRA:XR6 +0.82%72 Return-on-Tangible-Asset is 5.63% as of Jun. 2026, which is 23% above its 10-year median of 4.58. GuruFocus rates FRA:XR6 with a GF Score™ of 72/100 and a GF Value™ of €47.28. The stock has 4 warning signs investors should review. Among 505 Insurance companies, Definity Financial ranks better than 75.84% 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. Definity Financial's annualizedNet Income for the quarter that ended in Jun. 2026 was €377 Mil. Definity Financial's average total tangible assets for the quarter that ended in Jun. 2026 was €6,694 Mil. Therefore, Definity Financial's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 5.63%.
The historical rank and industry rank for Definity Financial's Return-on-Tangible-Asset or its related term are showing as below:
FRA:XR6'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.79 Med: 4.58 Max: 6.98
Current: 5.29
During the past 6 years, Definity Financial's highest Return-on-Tangible-Asset was 6.98%. The lowest was 1.79%. And the median was 4.58%.
FRA:XR6's Return-on-Tangible-Asset is ranked better than 75.84% of 505
companies
in the Insurance industry
Industry Median: 2.88
vs FRA:XR6: 5.29
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.
Definity Financial Return-on-Tangible-Asset Related Terms
Definity Financial Return-on-Tangible-Asset Historical Data
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The historical data trend for Definity Financial'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.
FRA:XR6 vs CB, PGR, TRV: Return-on-Tangible-Asset Comparison
For the Insurance - Property & Casualty subindustry, Definity Financial'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.
Definity Financial Return-on-Tangible-Asset vs Insurance Industry
For the Insurance industry and Financial Services sector, Definity Financial's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Definity Financial'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 (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 5.63% mean?
Definity Financial (FRA:XR6) has a Return-on-Tangible-Asset of 5.63% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Definity Financial and its competitors. This is 23% above median its historical median of 4.58. Over the past decade, Definity Financial's Return-on-Tangible-Asset has ranged from 1.79 to 6.98. According to the industry distribution chart, Definity Financial ranks #122 out of 505 companies in the Insurance industry, placing it in the top 24.2%.
Is Definity Financial's Return-on-Tangible-Asset too high?
Definity Financial's current Return-on-Tangible-Asset of 5.63% is 23% above median its 10-year median of 4.58. Over the past 10 years, this metric has ranged from a low of 1.79 to a high of 6.98. The Insurance industry median Return-on-Tangible-Asset is 2.88. Definity Financial's value of 5.63% is 95.5% above this industry median. Based on the distribution chart, Definity Financial ranks #122 out of 505 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Definity Financial has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Definity Financial's Return-on-Tangible-Asset compare to CB and PGR?
According to the Insurance industry distribution chart, Definity Financial ranks #122 out of 505 companies for Return-on-Tangible-Asset. This places Definity Financial in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.88. Definity Financial's value of 5.63% is 95.5% above this benchmark. Historically, Definity Financial's own Return-on-Tangible-Asset has ranged from 1.79 to 6.98 over the past decade. While the company's 10-year median is 4.58 vs. the industry median of 2.88, Definity Financial 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 2.88, based on 505 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. Definity Financial's current Return-on-Tangible-Asset of 5.63% is 95.5% 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 Definity Financial and its competitors. For the Insurance industry, the median Return-on-Tangible-Asset is 2.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Definity Financial's current Return-on-Tangible-Asset is 5.63%, which is 23% above median its own 10-year median of 4.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Definity Financial stock overvalued right now?
Definity Financial (FRA:XR6) has a current Return-on-Tangible-Asset of 5.63%. The stock's GF Value™ is €47.28, compared to a current price of €49.00 — trading 3.6% above its estimated fair value. The current Return-on-Tangible-Asset is 5.63%, which is 23% above median its 10-year median of 4.58 and 95.5% above the Insurance industry median of 2.88. Definity Financial's overall GF Score™ is 72/100 with 4 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 Definity Financial (FRA:XR6), the current Return-on-Tangible-Asset is 5.63% 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 Definity Financial (FRA:XR6) Overvalued in 2026?
Based on GuruFocus' analysis, Definity Financial stock appears to be overvalued.
The current stock price of €49.00 is trading 3.6% above its estimated GF Value™ of €47.28.
Key valuation signals for FRA:XR6:
Return-on-Tangible-Asset: 5.63% (23% above median its 10-year median of 4.58)
GF Value™: €47.28 vs. price of €49.00 (3.6% above fair value)
Industry Position: 95.5% above the Insurance median (#122 of 505)
No single metric tells the full story. See the FRA:XR6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Definity Financial Corp is a property and casualty insurance services provider. It serves the insurance needs of individual, commercial, and farm customers. Its product portfolio includes Personal auto insurance, Personal home insurance, Group auto insurance, Group home insurance, Business property insurance, Business liability insurance, Commercial vehicle insurance, Surety bonds, Oilfield services insurance, General farm insurance, Premier cash crop insurance, and Winery insurance.
72GF Score
Get the complete analysis for FRA:XR6
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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