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Ras Al Khaimah National Insurance Company PSC (ADX:RAKNIC) Return-on-Tangible-Equity Explanation
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.
Ras Al Khaimah National Insurance Company PSC Return-on-Tangible-Equity Related Terms
Ras Al Khaimah National Insurance Company PSC Return-on-Tangible-Equity 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.
Ras Al Khaimah National Insurance Company PSC Return-on-Tangible-Equity Chart
Ras Al Khaimah National Insurance Company PSC Annual Data
ADX:RAKNIC vs BRK.A, AIG, HIG: Return-on-Tangible-Equity Comparison
For the Insurance - Diversified subindustry, Ras Al Khaimah National Insurance Company PSC'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.
Ras Al Khaimah National Insurance Company PSC Return-on-Tangible-Equity vs Insurance Industry
* 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 four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 19.94% mean?
Ras Al Khaimah National Insurance Company PSC (ADX:RAKNIC) has a Return-on-Tangible-Equity of 19.94% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ras Al Khaimah National Insurance Company PSC and its competitors. This is 106% above median its historical median of 9.68.
Is Ras Al Khaimah National Insurance Company PSC's Return-on-Tangible-Equity too high?
Ras Al Khaimah National Insurance Company PSC's current Return-on-Tangible-Equity of 19.94% is 106% above median its 10-year median of 9.68. The Insurance industry median Return-on-Tangible-Equity is 13.55. Ras Al Khaimah National Insurance Company PSC's value of 19.94% is 47.2% above this industry median. Overall, Ras Al Khaimah National Insurance Company PSC has a GF Score™ of 55/100, reflecting its overall financial health beyond just this single metric.
How does Ras Al Khaimah National Insurance Company PSC's Return-on-Tangible-Equity compare to BRK.A and AIG?
Ras Al Khaimah National Insurance Company PSC's Return-on-Tangible-Equity of 19.94% can be compared against companies in the Insurance industry. The industry median Return-on-Tangible-Equity is 13.55. Ras Al Khaimah National Insurance Company PSC's value of 19.94% is 47.2% above this benchmark. While the company's 10-year median is 9.68 vs. the industry median of 13.55, Ras Al Khaimah National Insurance Company PSC 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-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.55, based on 495 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ras Al Khaimah National Insurance Company PSC's current Return-on-Tangible-Equity of 19.94% is 47.2% 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-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 Ras Al Khaimah National Insurance Company PSC and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ras Al Khaimah National Insurance Company PSC's current Return-on-Tangible-Equity is 19.94%, which is 106% above median its own 10-year median of 9.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ras Al Khaimah National Insurance Company PSC stock overvalued right now?
Ras Al Khaimah National Insurance Company PSC (ADX:RAKNIC) has a current Return-on-Tangible-Equity of 19.94%. The stock's GF Value™ is د.إ3.32, compared to a current price of د.إ3.02 — trading 9% below its estimated fair value. The current Return-on-Tangible-Equity is 19.94%, which is 106% above median its 10-year median of 9.68 and 47.2% above the Insurance industry median of 13.55. Ras Al Khaimah National Insurance Company PSC's overall GF Score™ is 55/100 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 Ras Al Khaimah National Insurance Company PSC (ADX:RAKNIC), the current Return-on-Tangible-Equity is 19.94% 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 Ras Al Khaimah National Insurance Company PSC (ADX:RAKNIC) Overvalued in 2026?
Based on GuruFocus' analysis, Ras Al Khaimah National Insurance Company PSC stock appears to be undervalued.
The current stock price of د.إ3.02 is trading 9% below its estimated GF Value™ of د.إ3.32.
Key valuation signals for ADX:RAKNIC:
Return-on-Tangible-Equity: 19.94% (106% above median its 10-year median of 9.68)
GF Value™: د.إ3.32 vs. price of د.إ3.02 (9% below fair value)
Industry Position: 47.2% above the Insurance median
No single metric tells the full story. See the ADX:RAKNIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ras Al Khaimah National Insurance Company PSC operates as an insurance company in the UAE. Its principal activity is to undertake all classes of the insurance business, including life assurance, saving, and accumulation of funds. It operates in two segments: Life & Medical and General & Motor. The majority of its revenue comes from the General & Motor segment.
55GF Score
Get the complete analysis for ADX:RAKNIC
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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