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DMO's Return-on-Tangible-Equity is ranked better than 60.04% of 1589
companies
in the Asset Management industry
Industry Median: 7.21
vs DMO: 10.11
Western Asset Mortgage Defined Opportunity Fund (NYSE:DMO) 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.
Western Asset Mortgage Defined Opportunity Fund Return-on-Tangible-Equity Related Terms
Western Asset Mortgage Defined Opportunity Fund Return-on-Tangible-Equity Historical Data
* 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.
Western Asset Mortgage Defined Opportunity Fund Return-on-Tangible-Equity Chart
Western Asset Mortgage Defined Opportunity Fund Annual Data
DMO vs GGZ, PFO, OXSQ: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Western Asset Mortgage Defined Opportunity Fund'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.
Western Asset Mortgage Defined Opportunity Fund Return-on-Tangible-Equity vs Asset Management Industry
* 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 8.89% mean?
Western Asset Mortgage Defined Opportunity Fund (DMO) has a Return-on-Tangible-Equity of 8.89% 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 Western Asset Mortgage Defined Opportunity Fund and its competitors. This is 12% below median its historical median of 10.13. According to the industry distribution chart, Western Asset Mortgage Defined Opportunity Fund ranks #635 out of 1589 companies in the Asset Management industry, placing it in the top 40%.
Is Western Asset Mortgage Defined Opportunity Fund's Return-on-Tangible-Equity too high?
Western Asset Mortgage Defined Opportunity Fund's current Return-on-Tangible-Equity of 8.89% is 12% below median its 10-year median of 10.13. The Asset Management industry median Return-on-Tangible-Equity is 7.21. Western Asset Mortgage Defined Opportunity Fund's value of 8.89% is 23.3% above this industry median. Based on the distribution chart, Western Asset Mortgage Defined Opportunity Fund ranks #635 out of 1589 companies in the Asset Management industry, which is above the industry midpoint. Overall, Western Asset Mortgage Defined Opportunity Fund has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Western Asset Mortgage Defined Opportunity Fund's Return-on-Tangible-Equity compare to GGZ and PFO?
According to the Asset Management industry distribution chart, Western Asset Mortgage Defined Opportunity Fund ranks #635 out of 1589 companies for Return-on-Tangible-Equity. This puts Western Asset Mortgage Defined Opportunity Fund in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.21. Western Asset Mortgage Defined Opportunity Fund's value of 8.89% is 23.3% above this benchmark. While the company's 10-year median is 10.13 vs. the industry median of 7.21, Western Asset Mortgage Defined Opportunity Fund 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 7.21, based on 1,589 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. Western Asset Mortgage Defined Opportunity Fund's current Return-on-Tangible-Equity of 8.89% is 23.3% 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 Western Asset Mortgage Defined Opportunity Fund and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Asset Mortgage Defined Opportunity Fund's current Return-on-Tangible-Equity is 8.89%, which is 12% below median its own 10-year median of 10.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Asset Mortgage Defined Opportunity Fund stock overvalued right now?
Based on GuruFocus' analysis, Western Asset Mortgage Defined Opportunity Fund (DMO) is currently considered Fairly Valued. The stock's GF Value™ is $10.53, compared to a current price of $10.45 — trading 0.8% below its estimated fair value. The current Return-on-Tangible-Equity is 8.89%, which is 12% below median its 10-year median of 10.13 and 23.3% above the Asset Management industry median of 7.21. Western Asset Mortgage Defined Opportunity Fund's overall GF Score™ is 54/100 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 Western Asset Mortgage Defined Opportunity Fund (DMO), the current Return-on-Tangible-Equity is 8.89% 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 Western Asset Mortgage Defined Opportunity Fund (DMO) Overvalued in 2026?
Based on GuruFocus' analysis, Western Asset Mortgage Defined Opportunity Fund stock appears to be undervalued.
The current stock price of $10.45 is trading 0.8% below its estimated GF Value™ of $10.53.
GuruFocus considers Western Asset Mortgage Defined Opportunity Fund to be Fairly Valued.
Key valuation signals for DMO:
Return-on-Tangible-Equity: 8.89% (12% below median its 10-year median of 10.13)
GF Value™: $10.53 vs. price of $10.45 (0.8% below fair value)
Industry Position: 23.3% above the Asset Management median (#635 of 1589)
No single metric tells the full story. See the DMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Asset Mortgage Defined Opportunity Fund Business Description
Western Asset Mortgage Defined Opportunity Fund Inc is a non-diversified, limited-term, closed-end management investment company. The fund's primary investment objective is to provide current income. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing in a diverse portfolio of mortgage-backed securities, consisting of non-agency residential mortgage-backed securities and commercial mortgage-backed securities.
54GF Score
Get the complete analysis for DMO
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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