Credit GroupASX:CCP -1.78%84 Return-on-Tangible-Equity is 10.08% as of Dec. 2025, which is 29% below its 10-year median of 14.16. GuruFocus rates ASX:CCP with a GF Score™ of 84/100 and a GF Value™ of A$22.99 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 525 Credit Services companies, Credit Group ranks better than 63.05% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Credit Group's annualized net income for the quarter that ended in Dec. 2025 was A$88.2 Mil. Credit Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$875.7 Mil. Therefore, Credit Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 10.08%.
The historical rank and industry rank for Credit Group's Return-on-Tangible-Equity or its related term are showing as below:
ASX:CCP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.93 Med: 14.16 Max: 24.14
Current: 10.77
During the past 13 years, Credit Group's highest Return-on-Tangible-Equity was 24.14%. The lowest was 2.93%. And the median was 14.16%.
ASX:CCP's Return-on-Tangible-Equity is ranked better than 63.05% of 525
companies
in the Credit Services industry
Industry Median: 7.01
vs ASX:CCP: 10.77
Credit Group (ASX:CCP) 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.
Credit Group Return-on-Tangible-Equity Related Terms
Credit Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Credit Group's Return-on-Tangible-Equity 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.
ASX:CCP vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Credit Group'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.
Credit Group Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Credit Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Credit Group's Return-on-Tangible-Equity 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-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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 10.08% mean?
Credit Group (ASX:CCP) has a Return-on-Tangible-Equity of 10.08% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Credit Group and its competitors. This is 29% below median its historical median of 14.16. Over the past decade, Credit Group's Return-on-Tangible-Equity has ranged from 2.93 to 24.14. According to the industry distribution chart, Credit Group ranks #194 out of 525 companies in the Credit Services industry, placing it in the top 37%.
Is Credit Group's Return-on-Tangible-Equity too high?
Credit Group's current Return-on-Tangible-Equity of 10.08% is 29% below median its 10-year median of 14.16. Over the past 10 years, this metric has ranged from a low of 2.93 to a high of 24.14. The Credit Services industry median Return-on-Tangible-Equity is 7.01. Credit Group's value of 10.08% is 43.8% above this industry median. Based on the distribution chart, Credit Group ranks #194 out of 525 companies in the Credit Services industry, which is above the industry midpoint. Overall, Credit Group has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Credit Group's Return-on-Tangible-Equity compare to V and MA?
According to the Credit Services industry distribution chart, Credit Group ranks #194 out of 525 companies for Return-on-Tangible-Equity. This puts Credit Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.01. Credit Group's value of 10.08% is 43.8% above this benchmark. Historically, Credit Group's own Return-on-Tangible-Equity has ranged from 2.93 to 24.14 over the past decade. While the company's 10-year median is 14.16 vs. the industry median of 7.01, Credit Group 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 a Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.01, based on 525 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. Credit Group's current Return-on-Tangible-Equity of 10.08% is 43.8% 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 Credit Group and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Credit Group's current Return-on-Tangible-Equity is 10.08%, which is 29% below median its own 10-year median of 14.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Credit Group stock overvalued right now?
Based on GuruFocus' analysis, Credit Group (ASX:CCP) is currently considered Significantly Undervalued. The stock's GF Value™ is A$22.99, compared to a current price of A$12.67 — trading 44.9% below its estimated fair value. The current Return-on-Tangible-Equity is 10.08%, which is 29% below median its 10-year median of 14.16 and 43.8% above the Credit Services industry median of 7.01. Credit Group's overall GF Score™ is 84/100 with 5 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 Credit Group (ASX:CCP), the current Return-on-Tangible-Equity is 10.08% as of Dec. 2025. 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 Credit Group (ASX:CCP) Overvalued in 2026?
Based on GuruFocus' analysis, Credit Group stock appears to be undervalued.
The current stock price of A$12.67 is trading 44.9% below its estimated GF Value™ of A$22.99.
GuruFocus considers Credit Group to be Significantly Undervalued.
Key valuation signals for ASX:CCP:
Return-on-Tangible-Equity: 10.08% (29% below median its 10-year median of 14.16)
GF Value™: A$22.99 vs. price of A$12.67 (44.9% below fair value)
Industry Position: 43.8% above the Credit Services median (#194 of 525)
No single metric tells the full story. See the ASX:CCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Credit Corp operates in the distressed consumer debt market. In its core business, it acquires purchased debt ledgers, or PDLs, in Australia and is expanding this business globally by buying PDLs in the United States. These PDLs consist of unsecured debt that are at least six months in arrears and have already been through a collection process. Since 2012, Credit Corp also diversified its business into providing consumer credit to customers who are unable to gain access to credit from primary sources such as banks because of a poor credit history. Its consumer credit business is gaining scale, but can be subject to increased regulatory scrutiny as it grows.
84GF Score
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