Central SecuritiesCET -0.45%49 Return-on-Tangible-Equity is 18.61% as of Dec. 2025, which is 3% above its 10-year median of 18.08. GuruFocus rates CET with a GF Score™ of 49/100 and a GF Value™ of $48.47 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,588 Asset Management companies, Central Securities ranks better than 72.04% 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. Central Securities's annualized net income for the quarter that ended in Dec. 2025 was $321.5 Mil. Central Securities's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $1,727.1 Mil. Therefore, Central Securities's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 18.61%.
The historical rank and industry rank for Central Securities's Return-on-Tangible-Equity or its related term are showing as below:
CET'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -12.87 Med: 18.08 Max: 29.85
Current: 15.84
During the past 13 years, Central Securities's highest Return-on-Tangible-Equity was 29.85%. The lowest was -12.87%. And the median was 18.08%.
CET's Return-on-Tangible-Equity is ranked better than 72.04% of 1588
companies
in the Asset Management industry
Industry Median: 7.19
vs CET: 15.84
Central Securities (AMEX:CET) 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.
Central Securities Return-on-Tangible-Equity Related Terms
Central Securities Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Central Securities'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.
Central Securities Return-on-Tangible-Equity Chart
CET vs TRIN, ECAT, GAM: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Central Securities'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.
Central Securities Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Central Securities's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Central Securities'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 18.61% mean?
Central Securities (CET) has a Return-on-Tangible-Equity of 18.61% 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 Central Securities and its competitors. This is near median its historical median of 18.08. According to the industry distribution chart, Central Securities ranks #444 out of 1588 companies in the Asset Management industry, placing it in the top 28%.
Is Central Securities' Return-on-Tangible-Equity too high?
Central Securities' current Return-on-Tangible-Equity of 18.61% is near median its 10-year median of 18.08. The Asset Management industry median Return-on-Tangible-Equity is 7.19. Central Securities' value of 18.61% is 158.8% above this industry median. Based on the distribution chart, Central Securities ranks #444 out of 1588 companies in the Asset Management industry, which is above the industry midpoint. Overall, Central Securities has a GF Score™ of 49/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Central Securities' Return-on-Tangible-Equity compare to TRIN and ECAT?
According to the Asset Management industry distribution chart, Central Securities ranks #444 out of 1588 companies for Return-on-Tangible-Equity. This puts Central Securities in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.19. Central Securities' value of 18.61% is 158.8% above this benchmark. While the company's 10-year median is 18.08 vs. the industry median of 7.19, Central Securities 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 an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.19, based on 1,588 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. Central Securities's current Return-on-Tangible-Equity of 18.61% is 158.8% 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 Central Securities and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Central Securities's current Return-on-Tangible-Equity is 18.61%, which is near median its own 10-year median of 18.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Central Securities stock overvalued right now?
Based on GuruFocus' analysis, Central Securities (CET) is currently considered Fairly Valued. The stock's GF Value™ is $48.47, compared to a current price of $52.70 — trading 8.7% above its estimated fair value. The current Return-on-Tangible-Equity is 18.61%, which is near median its 10-year median of 18.08 and 158.8% above the Asset Management industry median of 7.19. Central Securities' overall GF Score™ is 49/100 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 Central Securities (CET), the current Return-on-Tangible-Equity is 18.61% 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 Central Securities (CET) Overvalued in 2026?
Based on GuruFocus' analysis, Central Securities stock appears to be overvalued.
The current stock price of $52.70 is trading 8.7% above its estimated GF Value™ of $48.47.
GuruFocus considers Central Securities to be Fairly Valued.
Key valuation signals for CET:
Return-on-Tangible-Equity: 18.61% (near median its 10-year median of 18.08)
GF Value™: $48.47 vs. price of $52.70 (8.7% above fair value)
Industry Position: 158.8% above the Asset Management median (#444 of 1588)
No single metric tells the full story. See the CET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Central Securities Corp is a non-diversified closed-end management investment company. The company's investment objective is long-term growth of capital. It invests in common stocks, bonds, convertible bonds, preferred stocks, convertible preferred stocks, warrants, options real estate, or short-term obligations of governments, banks, and corporations.
49GF Score
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