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SmartCentres Real Estate Investment Trust (FRA:C7J1) 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.
SmartCentres Real Estate Investment Trust Return-on-Tangible-Equity Related Terms
SmartCentres Real Estate Investment Trust 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.
SmartCentres Real Estate Investment Trust Return-on-Tangible-Equity Chart
SmartCentres Real Estate Investment Trust Annual Data
FRA:C7J1 vs SPG, O, KIM: Return-on-Tangible-Equity Comparison
For the REIT - Retail subindustry, SmartCentres Real Estate Investment Trust'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.
SmartCentres Real Estate Investment Trust Return-on-Tangible-Equity vs REITs 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 four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -8.23% mean?
SmartCentres Real Estate Investment Trust (FRA:C7J1) has a Return-on-Tangible-Equity of -8.23% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on SmartCentres Real Estate Investment Trust and its competitors. Over the past decade, SmartCentres Real Estate Investment Trust's Return-on-Tangible-Equity has ranged from 1.73 to 18.19. According to the industry distribution chart, SmartCentres Real Estate Investment Trust ranks #631 out of 923 companies in the REITs industry, placing it in the top 68.4%.
Is SmartCentres Real Estate Investment Trust's Return-on-Tangible-Equity too high?
SmartCentres Real Estate Investment Trust's current Return-on-Tangible-Equity is -8.23%. Over the past 10 years, this metric has ranged from a low of 1.73 to a high of 18.19. Based on the distribution chart, SmartCentres Real Estate Investment Trust ranks #631 out of 923 companies in the REITs industry, which is below the industry midpoint. Overall, SmartCentres Real Estate Investment Trust has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SmartCentres Real Estate Investment Trust's Return-on-Tangible-Equity compare to SPG and O?
According to the REITs industry distribution chart, SmartCentres Real Estate Investment Trust ranks #631 out of 923 companies for Return-on-Tangible-Equity. This places SmartCentres Real Estate Investment Trust in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.35. Historically, SmartCentres Real Estate Investment Trust's own Return-on-Tangible-Equity has ranged from 1.73 to 18.19 over the past decade. 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 6.35, based on 923 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. 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 SmartCentres Real Estate Investment Trust and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SmartCentres Real Estate Investment Trust's current Return-on-Tangible-Equity is -8.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SmartCentres Real Estate Investment Trust stock overvalued right now?
Based on GuruFocus' analysis, SmartCentres Real Estate Investment Trust (FRA:C7J1) is currently considered Fairly Valued. The stock's GF Value™ is €15.84, compared to a current price of €16.59 — trading 4.7% above its estimated fair value. The current Return-on-Tangible-Equity is -8.23%. SmartCentres Real Estate Investment Trust's overall GF Score™ is 75/100 with 7 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 SmartCentres Real Estate Investment Trust (FRA:C7J1), the current Return-on-Tangible-Equity is -8.23% as of Jun. 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 SmartCentres Real Estate Investment Trust (FRA:C7J1) Overvalued in 2026?
Based on GuruFocus' analysis, SmartCentres Real Estate Investment Trust stock appears to be overvalued.
The current stock price of €16.59 is trading 4.7% above its estimated GF Value™ of €15.84.
GuruFocus considers SmartCentres Real Estate Investment Trust to be Fairly Valued.
Key valuation signals for FRA:C7J1:
Return-on-Tangible-Equity: -8.23%
GF Value™: €15.84 vs. price of €16.59 (4.7% above fair value)
No single metric tells the full story. See the FRA:C7J1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SmartCentres Real Estate Investment Trust is a Canadian fully integrated commercial and residential REIT, with several strategically located properties in communities across the country. It develops, leases, constructs, owns, and manages shopping centers, office buildings, high-rise and low-rise condos and rental residences, seniors' housing, townhome units, self-storage rental facilities, and industrial facilities in Canada, both directly and through its subsidiaries. The company generates maximum revenue from its retail properties. It has one reportable segment, which comprises the development, ownership, management, and operation of investment properties located in Canada.
75GF 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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