Kuwait Finance HouseBAH:KFH 79 Return-on-Tangible-Equity is 17.64% as of Mar. 2026, which is 40% above its 10-year median of 12.60. GuruFocus rates BAH:KFH with a GF Score™ of 79/100 and a GF Value™ of $2.51 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,521 Banks companies, Kuwait Finance House ranks better than 82.05% 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. Kuwait Finance House's annualized net income for the quarter that ended in Mar. 2026 was $2,281 Mil. Kuwait Finance House's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $12,934 Mil. Therefore, Kuwait Finance House's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.64%.
The historical rank and industry rank for Kuwait Finance House's Return-on-Tangible-Equity or its related term are showing as below:
BAH:KFH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.55 Med: 12.6 Max: 17.15
Current: 16.91
During the past 13 years, Kuwait Finance House's highest Return-on-Tangible-Equity was 17.15%. The lowest was 7.55%. And the median was 12.60%.
BAH:KFH's Return-on-Tangible-Equity is ranked better than 82.05% of 1521
companies
in the Banks industry
Industry Median: 11.19
vs BAH:KFH: 16.91
Kuwait Finance House (BAH:KFH) 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.
Kuwait Finance House Return-on-Tangible-Equity Related Terms
Kuwait Finance House Return-on-Tangible-Equity Historical Data
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The historical data trend for Kuwait Finance House'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.
Kuwait Finance House Return-on-Tangible-Equity Chart
BAH:KFH vs JPM, BAC, WFC: Return-on-Tangible-Equity Comparison
For the Banks - Diversified subindustry, Kuwait Finance House'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.
Kuwait Finance House Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Kuwait Finance House's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kuwait Finance House'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 17.64% mean?
Kuwait Finance House (BAH:KFH) has a Return-on-Tangible-Equity of 17.64% 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 Kuwait Finance House and its competitors. This is 40% above median its historical median of 12.60. Over the past decade, Kuwait Finance House's Return-on-Tangible-Equity has ranged from 7.55 to 17.15. According to the industry distribution chart, Kuwait Finance House ranks #273 out of 1521 companies in the Banks industry, placing it in the top 17.9%.
Is Kuwait Finance House's Return-on-Tangible-Equity too high?
Kuwait Finance House's current Return-on-Tangible-Equity of 17.64% is 40% above median its 10-year median of 12.60. Over the past 10 years, this metric has ranged from a low of 7.55 to a high of 17.15. The Banks industry median Return-on-Tangible-Equity is 11.19. Kuwait Finance House's value of 17.64% is 57.6% above this industry median. Based on the distribution chart, Kuwait Finance House ranks #273 out of 1521 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Kuwait Finance House has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kuwait Finance House's Return-on-Tangible-Equity compare to JPM and BAC?
According to the Banks industry distribution chart, Kuwait Finance House ranks #273 out of 1521 companies for Return-on-Tangible-Equity. This places Kuwait Finance House in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.19. Kuwait Finance House's value of 17.64% is 57.6% above this benchmark. Historically, Kuwait Finance House's own Return-on-Tangible-Equity has ranged from 7.55 to 17.15 over the past decade. While the company's 10-year median is 12.60 vs. the industry median of 11.19, Kuwait Finance House 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 11.19, based on 1,521 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. Kuwait Finance House's current Return-on-Tangible-Equity of 17.64% is 57.6% 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 Kuwait Finance House and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kuwait Finance House's current Return-on-Tangible-Equity is 17.64%, which is 40% above median its own 10-year median of 12.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kuwait Finance House stock overvalued right now?
Based on GuruFocus' analysis, Kuwait Finance House (BAH:KFH) is currently considered Fairly Valued. The stock's GF Value™ is $2.51, compared to a current price of $2.49 — trading 0.8% below its estimated fair value. The current Return-on-Tangible-Equity is 17.64%, which is 40% above median its 10-year median of 12.60 and 57.6% above the Banks industry median of 11.19. Kuwait Finance House's overall GF Score™ is 79/100 with 6 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 Kuwait Finance House (BAH:KFH), the current Return-on-Tangible-Equity is 17.64% 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 Kuwait Finance House (BAH:KFH) Overvalued in 2026?
Based on GuruFocus' analysis, Kuwait Finance House stock appears to be undervalued.
The current stock price of $2.49 is trading 0.8% below its estimated GF Value™ of $2.51.
GuruFocus considers Kuwait Finance House to be Fairly Valued.
Key valuation signals for BAH:KFH:
Return-on-Tangible-Equity: 17.64% (40% above median its 10-year median of 12.60)
GF Value™: $2.51 vs. price of $2.49 (0.8% below fair value)
Industry Position: 57.6% above the Banks median (#273 of 1521)
No single metric tells the full story. See the BAH:KFH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kuwait Finance House is an Islamic banking institution. It provides a range of banking Sharia-compliant products and services which include real estate, trade finance, investment portfolios, commercial, retail, and corporate banking. The company's segments are Treasury, Investment, Retail & Private Banking, and Corporates Banking. The Treasury and Corporate Banking gains maximum revenue, and it operates in Kuwait, Middle East, European, and others.
79GF Score
Get the complete analysis for BAH:KFH
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