Axos FinancialAX +0.93%85 Return-on-Tangible-Equity is 18.02% as of Mar. 2026, which is 1% below its 10-year median of 18.20. GuruFocus rates AX with a GF Score™ of 85/100 and a GF Value™ of $87.75 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,522 Banks companies, Axos Financial ranks better than 85.61% 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. Axos Financial's annualized net income for the quarter that ended in Mar. 2026 was $499 Mil. Axos Financial's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $2,768 Mil. Therefore, Axos Financial's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.02%.
The historical rank and industry rank for Axos Financial's Return-on-Tangible-Equity or its related term are showing as below:
AX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.14 Med: 18.2 Max: 23.32
Current: 18.23
During the past 13 years, Axos Financial's highest Return-on-Tangible-Equity was 23.32%. The lowest was 17.14%. And the median was 18.20%.
AX's Return-on-Tangible-Equity is ranked better than 85.61% of 1522
companies
in the Banks industry
Industry Median: 11.205
vs AX: 18.23
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.
Axos Financial Return-on-Tangible-Equity Related Terms
Axos Financial Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Axos Financial'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.
AX vs FINN, FFIN, ASB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Axos Financial'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.
Axos Financial Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Axos Financial's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Axos Financial'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 four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 18.02% mean?
Axos Financial (AX) has a Return-on-Tangible-Equity of 18.02% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Axos Financial and its competitors. This is near median its historical median of 18.20. Over the past decade, Axos Financial's Return-on-Tangible-Equity has ranged from 17.14 to 23.32. According to the industry distribution chart, Axos Financial ranks #219 out of 1522 companies in the Banks industry, placing it in the top 14.4%.
Is Axos Financial's Return-on-Tangible-Equity too high?
Axos Financial's current Return-on-Tangible-Equity of 18.02% is near median its 10-year median of 18.20. Over the past 10 years, this metric has ranged from a low of 17.14 to a high of 23.32. The Banks industry median Return-on-Tangible-Equity is 11.21. Axos Financial's value of 18.02% is 60.8% above this industry median. Based on the distribution chart, Axos Financial ranks #219 out of 1522 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Axos Financial has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Axos Financial's Return-on-Tangible-Equity compare to FINN and FFIN?
According to the Banks industry distribution chart, Axos Financial ranks #219 out of 1522 companies for Return-on-Tangible-Equity. This places Axos Financial in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.21. Axos Financial's value of 18.02% is 60.8% above this benchmark. Historically, Axos Financial's own Return-on-Tangible-Equity has ranged from 17.14 to 23.32 over the past decade. While the company's 10-year median is 18.20 vs. the industry median of 11.21, Axos Financial 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.21, based on 1,522 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. Axos Financial's current Return-on-Tangible-Equity of 18.02% is 60.8% 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 Axos Financial and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axos Financial's current Return-on-Tangible-Equity is 18.02%, which is near median its own 10-year median of 18.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axos Financial stock overvalued right now?
Based on GuruFocus' analysis, Axos Financial (AX) is currently considered Fairly Valued. The stock's GF Value™ is $87.75, compared to a current price of $96.23 — trading 9.7% above its estimated fair value. The current Return-on-Tangible-Equity is 18.02%, which is near median its 10-year median of 18.20 and 60.8% above the Banks industry median of 11.21. Axos Financial's overall GF Score™ is 85/100 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 Axos Financial (AX), the current Return-on-Tangible-Equity is 18.02% as of Mar. 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 Axos Financial (AX) Overvalued in 2026?
Based on GuruFocus' analysis, Axos Financial stock appears to be overvalued.
The current stock price of $96.23 is trading 9.7% above its estimated GF Value™ of $87.75.
GuruFocus considers Axos Financial to be Fairly Valued.
Key valuation signals for AX:
Return-on-Tangible-Equity: 18.02% (near median its 10-year median of 18.20)
GF Value™: $87.75 vs. price of $96.23 (9.7% above fair value)
Industry Position: 60.8% above the Banks median (#219 of 1522)
No single metric tells the full story. See the AX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Axos Financial Inc is a bank holding company that operates through its bank subsidiary, BofI Federal Bank, a nationwide bank that provides financing for single and multifamily residential properties, small to medium-size businesses in certain sectors, and selected specialty finance receivables. Its operating segments are banking business segment and securities business segment. The bank distributed its products through a wide range of retail distribution channels, including only banking brands, affinity groups, and sales teams, among others. The majority of the bank's mortgage exposure is titled toward the state of California, particularly its southern region. Net interest income is a majority of the bank's revenue.
85GF Score
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