Morphic Ethical Equity FundASX:MEC 40 Return-on-Tangible-Equity is 6.13% as of Dec. 2025, which is 15% below its 10-year median of 7.25. GuruFocus rates ASX:MEC with a GF Score™ of 40/100 and a GF Value™ of A$0.78 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,587 Asset Management companies, Morphic Ethical Equity Fund ranks better than 57.28% 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. Morphic Ethical Equity Fund's annualized net income for the quarter that ended in Dec. 2025 was A$2.52 Mil. Morphic Ethical Equity Fund's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$41.15 Mil. Therefore, Morphic Ethical Equity Fund's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 6.13%.
The historical rank and industry rank for Morphic Ethical Equity Fund's Return-on-Tangible-Equity or its related term are showing as below:
ASX:MEC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1.83 Med: 7.25 Max: 20.76
Current: 9.04
During the past 7 years, Morphic Ethical Equity Fund's highest Return-on-Tangible-Equity was 20.76%. The lowest was -1.83%. And the median was 7.25%.
ASX:MEC's Return-on-Tangible-Equity is ranked better than 57.28% of 1587
companies
in the Asset Management industry
Industry Median: 7.18
vs ASX:MEC: 9.04
Morphic Ethical Equity Fund (ASX:MEC) 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.
Morphic Ethical Equity Fund Return-on-Tangible-Equity Related Terms
Morphic Ethical Equity Fund 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.
Morphic Ethical Equity Fund Return-on-Tangible-Equity Chart
ASX:MEC vs BLK, BX, KKR: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Morphic Ethical Equity Fund'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.
Morphic Ethical Equity Fund Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Morphic Ethical Equity Fund's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Morphic Ethical Equity Fund'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 6.13% mean?
Morphic Ethical Equity Fund (ASX:MEC) has a Return-on-Tangible-Equity of 6.13% 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 Morphic Ethical Equity Fund and its competitors. This is 15% below median its historical median of 7.25. According to the industry distribution chart, Morphic Ethical Equity Fund ranks #678 out of 1587 companies in the Asset Management industry, placing it in the top 42.7%.
Is Morphic Ethical Equity Fund's Return-on-Tangible-Equity too high?
Morphic Ethical Equity Fund's current Return-on-Tangible-Equity of 6.13% is 15% below median its 10-year median of 7.25. The Asset Management industry median Return-on-Tangible-Equity is 7.18. Morphic Ethical Equity Fund's value of 6.13% is 14.6% below this industry median. Based on the distribution chart, Morphic Ethical Equity Fund ranks #678 out of 1587 companies in the Asset Management industry, which is above the industry midpoint. Overall, Morphic Ethical Equity Fund has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Morphic Ethical Equity Fund's Return-on-Tangible-Equity compare to BLK and BX?
According to the Asset Management industry distribution chart, Morphic Ethical Equity Fund ranks #678 out of 1587 companies for Return-on-Tangible-Equity. This puts Morphic Ethical Equity Fund in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.18. Morphic Ethical Equity Fund's value of 6.13% is 14.6% below this benchmark. While the company's 10-year median is 7.25 vs. the industry median of 7.18, Morphic Ethical Equity Fund has consistently been below 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 Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.18, based on 1,587 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. Morphic Ethical Equity Fund's current Return-on-Tangible-Equity of 6.13% is 14.6% 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-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 Morphic Ethical Equity Fund and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morphic Ethical Equity Fund's current Return-on-Tangible-Equity is 6.13%, which is 15% below median its own 10-year median of 7.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morphic Ethical Equity Fund stock overvalued right now?
Based on GuruFocus' analysis, Morphic Ethical Equity Fund (ASX:MEC) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.78, compared to a current price of A$1.34 — trading 71.2% above its estimated fair value. The current Return-on-Tangible-Equity is 6.13%, which is 15% below median its 10-year median of 7.25 and 14.6% below the Asset Management industry median of 7.18. Morphic Ethical Equity Fund's overall GF Score™ is 40/100 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 Morphic Ethical Equity Fund (ASX:MEC), the current Return-on-Tangible-Equity is 6.13% 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 Morphic Ethical Equity Fund (ASX:MEC) Overvalued in 2026?
Based on GuruFocus' analysis, Morphic Ethical Equity Fund stock appears to be overvalued.
The current stock price of A$1.34 is trading 71.2% above its estimated GF Value™ of A$0.78.
GuruFocus considers Morphic Ethical Equity Fund to be Significantly Overvalued.
Key valuation signals for ASX:MEC:
Return-on-Tangible-Equity: 6.13% (15% below median its 10-year median of 7.25)
GF Value™: A$0.78 vs. price of A$1.34 (71.2% above fair value)
Industry Position: 14.6% below the Asset Management median (#678 of 1587)
No single metric tells the full story. See the ASX:MEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morphic Ethical Equity Fund Ltd is an investment company. Its investment objective is to provide superior risk-adjusted returns to shareholders, comprising a combination of capital growth and income, thus allowing franked dividends to be paid to shareholders when prudent, and provided the company has sufficient profit reserves and franking credits available. The company invests in a portfolio of internationally listed securities screened to exclude entities involved in environmentally damaging activities (including coal and uranium, mining and oil and gas), intensive farming and aquaculture, tobacco, armaments, alcohol, and gambling. It earns revenue from dividend income, interest income, and other returns from the investment portfolio.
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