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ClearBridge Energy Midstream Opportunity Fund (NYSE:EMO) 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.
ClearBridge Energy Midstream Opportunity Fund Return-on-Tangible-Equity Related Terms
ClearBridge Energy Midstream 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.
ClearBridge Energy Midstream Opportunity Fund Return-on-Tangible-Equity Chart
ClearBridge Energy Midstream Opportunity Fund Annual Data
EMO vs EVV, PSEC, PTA: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, ClearBridge Energy Midstream 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.
ClearBridge Energy Midstream 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 (May. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 34.93% mean?
ClearBridge Energy Midstream Opportunity Fund (EMO) has a Return-on-Tangible-Equity of 34.93% as of May. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ClearBridge Energy Midstream Opportunity Fund and its competitors. According to the industry distribution chart, ClearBridge Energy Midstream Opportunity Fund ranks #336 out of 1591 companies in the Asset Management industry, placing it in the top 21.1%.
Is ClearBridge Energy Midstream Opportunity Fund's Return-on-Tangible-Equity too high?
ClearBridge Energy Midstream Opportunity Fund's current Return-on-Tangible-Equity is 34.93%. The Asset Management industry median Return-on-Tangible-Equity is 7.44. ClearBridge Energy Midstream Opportunity Fund's value of 34.93% is 369.5% above this industry median. Based on the distribution chart, ClearBridge Energy Midstream Opportunity Fund ranks #336 out of 1591 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, ClearBridge Energy Midstream Opportunity Fund has a GF Score™ of 51/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ClearBridge Energy Midstream Opportunity Fund's Return-on-Tangible-Equity compare to EVV and PSEC?
According to the Asset Management industry distribution chart, ClearBridge Energy Midstream Opportunity Fund ranks #336 out of 1591 companies for Return-on-Tangible-Equity. This places ClearBridge Energy Midstream Opportunity Fund in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.44. ClearBridge Energy Midstream Opportunity Fund's value of 34.93% is 369.5% above this benchmark. 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 7.44, based on 1,591 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. ClearBridge Energy Midstream Opportunity Fund's current Return-on-Tangible-Equity of 34.93% is 369.5% 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 ClearBridge Energy Midstream Opportunity Fund and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ClearBridge Energy Midstream Opportunity Fund's current Return-on-Tangible-Equity is 34.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ClearBridge Energy Midstream Opportunity Fund stock overvalued right now?
Based on GuruFocus' analysis, ClearBridge Energy Midstream Opportunity Fund (EMO) is currently considered Significantly Undervalued. The stock's GF Value™ is $80.98, compared to a current price of $54.37 — trading 32.9% below its estimated fair value. The current Return-on-Tangible-Equity is 34.93% and 369.5% above the Asset Management industry median of 7.44. ClearBridge Energy Midstream Opportunity Fund's overall GF Score™ is 51/100 with 1 warning sign 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 ClearBridge Energy Midstream Opportunity Fund (EMO), the current Return-on-Tangible-Equity is 34.93% as of May. 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 ClearBridge Energy Midstream Opportunity Fund (EMO) Overvalued in 2026?
Based on GuruFocus' analysis, ClearBridge Energy Midstream Opportunity Fund stock appears to be undervalued.
The current stock price of $54.37 is trading 32.9% below its estimated GF Value™ of $80.98.
GuruFocus considers ClearBridge Energy Midstream Opportunity Fund to be Significantly Undervalued.
Key valuation signals for EMO:
Return-on-Tangible-Equity: 34.93%
GF Value™: $80.98 vs. price of $54.37 (32.9% below fair value)
Industry Position: 369.5% above the Asset Management median (#336 of 1591)
No single metric tells the full story. See the EMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ClearBridge Energy Midstream Opportunity Fund Inc is a non-diversified, closed-end management investment company. Its investment objective is to provide long-term investors with a high level of total return with an emphasis on cash distributions. The Fund considers investments in midstream entities as those entities that provide midstream services including the gathering, transporting, processing, fractionation, storing, refining, and distribution of oil, natural gas liquids and natural gas.
51GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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