Finance of AmericaFOA -1.54%47 Return-on-Tangible-Equity is 43.54% as of Mar. 2026, which is 74% below its 10-year median of 167.58. GuruFocus rates FOA with a GF Score™ of 47/100 and a GF Value™ of $25.10 (Fairly Valued). The stock has 6 warning signs investors should review. Among 525 Credit Services companies, Finance of America ranks better than 90.1% 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. Finance of America's annualized net income for the quarter that ended in Mar. 2026 was $70.0 Mil. Finance of America's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $160.8 Mil. Therefore, Finance of America's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 43.54%.
The historical rank and industry rank for Finance of America's Return-on-Tangible-Equity or its related term are showing as below:
FOA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 25.92 Med: 167.58 Max: 274.2
Current: 25.92
During the past 7 years, Finance of America's highest Return-on-Tangible-Equity was 274.20%. The lowest was 25.92%. And the median was 167.58%.
FOA's Return-on-Tangible-Equity is ranked better than 90.1% of 525
companies
in the Credit Services industry
Industry Median: 7.01
vs FOA: 25.92
Finance of America (NYSE:FOA) 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.
Finance of America Return-on-Tangible-Equity Related Terms
Finance of America Return-on-Tangible-Equity Historical Data
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The historical data trend for Finance of America'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.
Finance of America Return-on-Tangible-Equity Chart
FOA vs CPSS, PMTS, MFIN: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Finance of America'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.
Finance of America Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Finance of America's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Finance of America'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 43.54% mean?
Finance of America (FOA) has a Return-on-Tangible-Equity of 43.54% 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 Finance of America and its competitors. This is 74% below median its historical median of 167.58. Over the past decade, Finance of America's Return-on-Tangible-Equity has ranged from 25.92 to 274.20. According to the industry distribution chart, Finance of America ranks #52 out of 525 companies in the Credit Services industry, placing it in the top 9.9%.
Is Finance of America's Return-on-Tangible-Equity too high?
Finance of America's current Return-on-Tangible-Equity of 43.54% is 74% below median its 10-year median of 167.58. Over the past 10 years, this metric has ranged from a low of 25.92 to a high of 274.20. The Credit Services industry median Return-on-Tangible-Equity is 7.01. Finance of America's value of 43.54% is 521.1% above this industry median. Based on the distribution chart, Finance of America ranks #52 out of 525 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Finance of America has a GF Score™ of 47/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Finance of America's Return-on-Tangible-Equity compare to CPSS and PMTS?
According to the Credit Services industry distribution chart, Finance of America ranks #52 out of 525 companies for Return-on-Tangible-Equity. This places Finance of America in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.01. Finance of America's value of 43.54% is 521.1% above this benchmark. Historically, Finance of America's own Return-on-Tangible-Equity has ranged from 25.92 to 274.20 over the past decade. While the company's 10-year median is 167.58 vs. the industry median of 7.01, Finance of America 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 7.01, based on 525 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. Finance of America's current Return-on-Tangible-Equity of 43.54% is 521.1% 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 Finance of America and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Finance of America's current Return-on-Tangible-Equity is 43.54%, which is 74% below median its own 10-year median of 167.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Finance of America stock overvalued right now?
Based on GuruFocus' analysis, Finance of America (FOA) is currently considered Fairly Valued. The stock's GF Value™ is $25.10, compared to a current price of $27.47 — trading 9.4% above its estimated fair value. The current Return-on-Tangible-Equity is 43.54%, which is 74% below median its 10-year median of 167.58 and 521.1% above the Credit Services industry median of 7.01. Finance of America's overall GF Score™ is 47/100 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 Finance of America (FOA), the current Return-on-Tangible-Equity is 43.54% 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 Finance of America (FOA) Overvalued in 2026?
Based on GuruFocus' analysis, Finance of America stock appears to be overvalued.
The current stock price of $27.47 is trading 9.4% above its estimated GF Value™ of $25.10.
GuruFocus considers Finance of America to be Fairly Valued.
Key valuation signals for FOA:
Return-on-Tangible-Equity: 43.54% (74% below median its 10-year median of 167.58)
GF Value™: $25.10 vs. price of $27.47 (9.4% above fair value)
Industry Position: 521.1% above the Credit Services median (#52 of 525)
No single metric tells the full story. See the FOA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Finance of America Companies Inc provides home equity-based financing solutions for modern retirement and offers capital markets and portfolio management capabilities to optimize loan distribution to investors. The Company operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment handles loan origination, including HECM and non-agency reverse mortgage loans, generating revenue from origination fees and initial gains, with loans transferred to the Portfolio Management segment. The Portfolio Management segment, which generates the majority of revenue, provides securitization, loan sales, risk management, and asset management services, and earns revenue from net interest income, fair value changes, and servicing-related income.
47GF Score
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