Reef Casino TrustASX:RCT +3.33%74 Return-on-Tangible-Equity is 67.97% as of Dec. 2025, which is 51% above its 10-year median of 44.92. GuruFocus rates ASX:RCT with a GF Score™ of 74/100 and a GF Value™ of A$3.01 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 796 Travel & Leisure companies, Reef Casino Trust ranks better than 83.17% 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. Reef Casino Trust's annualized net income for the quarter that ended in Dec. 2025 was A$7.52 Mil. Reef Casino Trust's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$11.06 Mil. Therefore, Reef Casino Trust's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 67.97%.
The historical rank and industry rank for Reef Casino Trust's Return-on-Tangible-Equity or its related term are showing as below:
ASX:RCT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.06 Med: 44.92 Max: 68.62
Current: 48.57
During the past 13 years, Reef Casino Trust's highest Return-on-Tangible-Equity was 68.62%. The lowest was -2.06%. And the median was 44.92%.
ASX:RCT's Return-on-Tangible-Equity is ranked better than 83.17% of 796
companies
in the Travel & Leisure industry
Industry Median: 7.615
vs ASX:RCT: 48.57
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.
Reef Casino Trust Return-on-Tangible-Equity Related Terms
Reef Casino Trust Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Reef Casino Trust'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:RCT vs LVS, MGM, WYNN: Return-on-Tangible-Equity Comparison
For the Resorts & Casinos subindustry, Reef Casino Trust'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.
Reef Casino Trust Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Reef Casino Trust's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Reef Casino Trust'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 67.97% mean?
Reef Casino Trust (ASX:RCT) has a Return-on-Tangible-Equity of 67.97% 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 Reef Casino Trust and its competitors. This is 51% above median its historical median of 44.92. According to the industry distribution chart, Reef Casino Trust ranks #134 out of 796 companies in the Travel & Leisure industry, placing it in the top 16.8%.
Is Reef Casino Trust's Return-on-Tangible-Equity too high?
Reef Casino Trust's current Return-on-Tangible-Equity of 67.97% is 51% above median its 10-year median of 44.92. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.62. Reef Casino Trust's value of 67.97% is 792.6% above this industry median. Based on the distribution chart, Reef Casino Trust ranks #134 out of 796 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Reef Casino Trust has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Reef Casino Trust's Return-on-Tangible-Equity compare to LVS and MGM?
According to the Travel & Leisure industry distribution chart, Reef Casino Trust ranks #134 out of 796 companies for Return-on-Tangible-Equity. This places Reef Casino Trust in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.62. Reef Casino Trust's value of 67.97% is 792.6% above this benchmark. While the company's 10-year median is 44.92 vs. the industry median of 7.62, Reef Casino Trust 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 Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.62, based on 796 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. Reef Casino Trust's current Return-on-Tangible-Equity of 67.97% is 792.6% 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 Reef Casino Trust and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reef Casino Trust's current Return-on-Tangible-Equity is 67.97%, which is 51% above median its own 10-year median of 44.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reef Casino Trust stock overvalued right now?
Based on GuruFocus' analysis, Reef Casino Trust (ASX:RCT) is currently considered Modestly Overvalued. The stock's GF Value™ is A$3.01, compared to a current price of A$3.72 — trading 23.6% above its estimated fair value. The current Return-on-Tangible-Equity is 67.97%, which is 51% above median its 10-year median of 44.92 and 792.6% above the Travel & Leisure industry median of 7.62. Reef Casino Trust's overall GF Score™ is 74/100 with 9 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 Reef Casino Trust (ASX:RCT), the current Return-on-Tangible-Equity is 67.97% 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 Reef Casino Trust (ASX:RCT) Overvalued in 2026?
Based on GuruFocus' analysis, Reef Casino Trust stock appears to be overvalued.
The current stock price of A$3.72 is trading 23.6% above its estimated GF Value™ of A$3.01.
GuruFocus considers Reef Casino Trust to be Modestly Overvalued.
Key valuation signals for ASX:RCT:
Return-on-Tangible-Equity: 67.97% (51% above median its 10-year median of 44.92)
GF Value™: A$3.01 vs. price of A$3.72 (23.6% above fair value)
Industry Position: 792.6% above the Travel & Leisure median (#134 of 796)
No single metric tells the full story. See the ASX:RCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reef Casino Trust is engaged in the operation of the Reef Hotel-Casino Complex located in Cairns, Queensland, Australia. The company derives revenue from the casino, which includes electronic gaming and table games, and the hotel, which includes room accommodation and food and beverage, and others. The majority of the revenue is generated from the rental income received from the casino operations. The company operates in two segments, which includes Casino operations and Hotel segment.
74GF Score
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