Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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. Southern Michigan Bancorp's annualizedNet Income for the quarter that ended in Dec. 2018 was $7.30 Mil. Southern Michigan Bancorp's average total tangible assets for the quarter that ended in Dec. 2018 was $739.33 Mil. Therefore, Southern Michigan Bancorp's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2018 was 0.99%.
The historical rank and industry rank for Southern Michigan Bancorp's Return-on-Tangible-Asset or its related term are showing as below:
SOMC's Return-on-Tangible-Asset is not ranked *
in the Banks industry.
Industry Median: 1.03 * Ranked among companies with meaningful Return-on-Tangible-Asset only.
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.
Southern Michigan Bancorp Return-on-Tangible-Asset Related Terms
Southern Michigan Bancorp Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Southern Michigan Bancorp'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.
SOMC vs UBNC, EMCF, AMRB: Return-on-Tangible-Asset Comparison
For the Banks - Regional subindustry, Southern Michigan Bancorp'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.
Southern Michigan Bancorp Return-on-Tangible-Asset vs Banks Industry
For the Banks industry and Financial Services sector, Southern Michigan Bancorp's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Southern Michigan Bancorp'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 (Dec. 2018) net income data.
What does a Return-on-Tangible-Asset of 0.99% mean?
Southern Michigan Bancorp (SOMC) has a Return-on-Tangible-Asset of 0.99% as of Dec. 2018. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Southern Michigan Bancorp and its competitors.
Is Southern Michigan Bancorp's Return-on-Tangible-Asset too high?
Southern Michigan Bancorp's current Return-on-Tangible-Asset is 0.99%. The Banks industry median Return-on-Tangible-Asset is 1.03. Southern Michigan Bancorp's value of 0.99% is 3.9% below this industry median.
How does Southern Michigan Bancorp's Return-on-Tangible-Asset compare to UBNC and EMCF?
Southern Michigan Bancorp's Return-on-Tangible-Asset of 0.99% can be compared against companies in the Banks industry. The industry median Return-on-Tangible-Asset is 1.03. Southern Michigan Bancorp's value of 0.99% is 3.9% below this benchmark. 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 1,517 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. Southern Michigan Bancorp's current Return-on-Tangible-Asset of 0.99% is 3.9% 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 Southern Michigan Bancorp 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. Southern Michigan Bancorp's current Return-on-Tangible-Asset is 0.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southern Michigan Bancorp stock overvalued right now?
Southern Michigan Bancorp (SOMC) has a current Return-on-Tangible-Asset of 0.99%. The current Return-on-Tangible-Asset is 0.99% and 3.9% below the Banks industry median of 1.03. 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 Southern Michigan Bancorp (SOMC), the current Return-on-Tangible-Asset is 0.99% as of Dec. 2018. 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.
Southern Michigan Bancorp Inc is a United States-based financial holding company. The majority of its operations are carried out by its banking subsidiary, which offers individuals, businesses, institutions, and government agencies a full range of commercial banking products and services. These products and services include time, savings, and demand deposits; safe deposit box services; automated teller machine services; loans, including both commercial and consumer; investment management; trustee services, etc. The Group mainly caters to the communities located in Michigan through its banking and loan production offices. It has one reportable operating segment: commercial banking.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SOMC has been successfully added to your 
