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Muthoot MicrofinBOM:544055 -4.07%35 Return-on-Tangible-Equity is 9.97% as of Mar. 2026, which is 90% above its 10-year median of 5.24. GuruFocus rates BOM:544055 with a GF Score™ of 35/100. The stock has 8 warning signs investors should review. Among 527 Credit Services companies, Muthoot Microfin ranks worse than 52.75% 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. Muthoot Microfin's annualized net income for the quarter that ended in Mar. 2026 was ₹2,845 Mil. Muthoot Microfin's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹28,539 Mil. Therefore, Muthoot Microfin's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 9.97%.
The historical rank and industry rank for Muthoot Microfin's Return-on-Tangible-Equity or its related term are showing as below:
BOM:544055'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8.19 Med: 5.24 Max: 20.3
Current: 6.24
During the past 6 years, Muthoot Microfin's highest Return-on-Tangible-Equity was 20.30%. The lowest was -8.19%. And the median was 5.24%.
BOM:544055's Return-on-Tangible-Equity is ranked worse than 52.75% of 527
companies
in the Credit Services industry
Industry Median: 7.05
vs BOM:544055: 6.24
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.
Muthoot Microfin Return-on-Tangible-Equity Related Terms
Muthoot Microfin Return-on-Tangible-Equity Historical Data
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The historical data trend for Muthoot Microfin'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.
BOM:544055 vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Muthoot Microfin'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.
Muthoot Microfin Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Muthoot Microfin's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Muthoot Microfin'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 9.97% mean?
Muthoot Microfin (BOM:544055) has a Return-on-Tangible-Equity of 9.97% 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 Muthoot Microfin and its competitors. This is 90% above median its historical median of 5.24. According to the industry distribution chart, Muthoot Microfin ranks #278 out of 527 companies in the Credit Services industry, placing it in the top 52.8%.
Is Muthoot Microfin's Return-on-Tangible-Equity too high?
Muthoot Microfin's current Return-on-Tangible-Equity of 9.97% is 90% above median its 10-year median of 5.24. The Credit Services industry median Return-on-Tangible-Equity is 7.05. Muthoot Microfin's value of 9.97% is 41.4% above this industry median. Based on the distribution chart, Muthoot Microfin ranks #278 out of 527 companies in the Credit Services industry, which is below the industry midpoint. Overall, Muthoot Microfin has a GF Score™ of 35/100, reflecting its overall financial health beyond just this single metric.
How does Muthoot Microfin's Return-on-Tangible-Equity compare to V and MA?
According to the Credit Services industry distribution chart, Muthoot Microfin ranks #278 out of 527 companies for Return-on-Tangible-Equity. This places Muthoot Microfin in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.05. Muthoot Microfin's value of 9.97% is 41.4% above this benchmark. While the company's 10-year median is 5.24 vs. the industry median of 7.05, Muthoot Microfin 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 7.05, based on 527 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. Muthoot Microfin's current Return-on-Tangible-Equity of 9.97% is 41.4% 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 Muthoot Microfin and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muthoot Microfin's current Return-on-Tangible-Equity is 9.97%, which is 90% above median its own 10-year median of 5.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muthoot Microfin stock overvalued right now?
Muthoot Microfin (BOM:544055) has a current Return-on-Tangible-Equity of 9.97%. The current Return-on-Tangible-Equity is 9.97%, which is 90% above median its 10-year median of 5.24 and 41.4% above the Credit Services industry median of 7.05. Muthoot Microfin's overall GF Score™ is 35/100 with 8 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 Muthoot Microfin (BOM:544055), the current Return-on-Tangible-Equity is 9.97% 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.
Muthoot Microfin Ltd is a microfinance institution providing micro-loans to women customers with a focus on rural regions of India. The company offers loan products such as group loans for livelihood solutions such as income generating loans, Pragathi loans, and individual loans; life betterment solutions including mobile phones loans, solar lighting product loans, and household appliances product loans; health and hygiene loans such as sanitation improvement loans; and secured loans in the form of gold loans and Muthoot Small & Growing Business loans.
35GF Score
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