Annaly Capital ManagementFRA:AAYA +0.93%24 Return-on-Tangible-Equity is 7.21% as of Mar. 2026, which is 31% below its 10-year median of 10.38. GuruFocus rates FRA:AAYA with a GF Score™ of 24/100. The stock has 9 warning signs investors should review. Among 935 REITs companies, Annaly Capital Management ranks better than 87.59% 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. Annaly Capital Management's annualized net income for the quarter that ended in Mar. 2026 was €978 Mil. Annaly Capital Management's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €13,570 Mil. Therefore, Annaly Capital Management's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.21%.
The historical rank and industry rank for Annaly Capital Management's Return-on-Tangible-Equity or its related term are showing as below:
FRA:AAYA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -15.58 Med: 10.38 Max: 18.17
Current: 15.18
During the past 13 years, Annaly Capital Management's highest Return-on-Tangible-Equity was 18.17%. The lowest was -15.58%. And the median was 10.38%.
FRA:AAYA's Return-on-Tangible-Equity is ranked better than 87.59% of 935
companies
in the REITs industry
Industry Median: 6.23
vs FRA:AAYA: 15.18
Annaly Capital Management (FRA:AAYA) 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.
Annaly Capital Management Return-on-Tangible-Equity Related Terms
Annaly Capital Management Return-on-Tangible-Equity Historical Data
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The historical data trend for Annaly Capital Management'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.
Annaly Capital Management Return-on-Tangible-Equity Chart
FRA:AAYA vs AGNC, STWD, RITM: Return-on-Tangible-Equity Comparison
For the REIT - Mortgage subindustry, Annaly Capital Management'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.
Annaly Capital Management Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Annaly Capital Management's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Annaly Capital Management'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 7.21% mean?
Annaly Capital Management (FRA:AAYA) has a Return-on-Tangible-Equity of 7.21% 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 Annaly Capital Management and its competitors. This is 31% below median its historical median of 10.38. According to the industry distribution chart, Annaly Capital Management ranks #116 out of 935 companies in the REITs industry, placing it in the top 12.4%.
Is Annaly Capital Management's Return-on-Tangible-Equity too high?
Annaly Capital Management's current Return-on-Tangible-Equity of 7.21% is 31% below median its 10-year median of 10.38. The REITs industry median Return-on-Tangible-Equity is 6.23. Annaly Capital Management's value of 7.21% is 15.7% above this industry median. Based on the distribution chart, Annaly Capital Management ranks #116 out of 935 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Annaly Capital Management has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does Annaly Capital Management's Return-on-Tangible-Equity compare to AGNC and STWD?
According to the REITs industry distribution chart, Annaly Capital Management ranks #116 out of 935 companies for Return-on-Tangible-Equity. This places Annaly Capital Management in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.23. Annaly Capital Management's value of 7.21% is 15.7% above this benchmark. While the company's 10-year median is 10.38 vs. the industry median of 6.23, Annaly Capital Management 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 REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.23, based on 935 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. Annaly Capital Management's current Return-on-Tangible-Equity of 7.21% is 15.7% 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 Annaly Capital Management and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Annaly Capital Management's current Return-on-Tangible-Equity is 7.21%, which is 31% below median its own 10-year median of 10.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Annaly Capital Management stock overvalued right now?
Annaly Capital Management (FRA:AAYA) has a current Return-on-Tangible-Equity of 7.21%. The current Return-on-Tangible-Equity is 7.21%, which is 31% below median its 10-year median of 10.38 and 15.7% above the REITs industry median of 6.23. Annaly Capital Management's overall GF Score™ is 24/100 with 9 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 Annaly Capital Management (FRA:AAYA), the current Return-on-Tangible-Equity is 7.21% 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.
Annaly Capital Management Inc is an American mortgage real estate investment trust. Its business objective is to generate net income for distribution to its stockholders and optimize its returns through prudent management of its diversified investment strategies. The company's reportable operating segments are: the Agency segment, which invests in Agency mortgage-backed securities collateralized by residential mortgages; the Residential Credit segment, which invests in non-Agency residential whole loans and securitized products within the residential and commercial markets; the Mortgage Servicing Rights segment; and Corporate & Other. Maximum revenue for the company is generated from its Agency segment.
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