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Capitec Bank HoldingsJSE:CPI +0.79%88 Return-on-Tangible-Equity is 32.11% as of Feb. 2026, which is 20% above its 10-year median of 26.69. GuruFocus rates JSE:CPI with a GF Score™ of 88/100 and a GF Value™ of R4,274.87 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,523 Banks companies, Capitec Bank Holdings ranks better than 96.72% 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. Capitec Bank Holdings's annualized net income for the quarter that ended in Feb. 2026 was R17,683 Mil. Capitec Bank Holdings's average shareholder tangible equity for the quarter that ended in Feb. 2026 was R55,070 Mil. Therefore, Capitec Bank Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 32.11%.
The historical rank and industry rank for Capitec Bank Holdings's Return-on-Tangible-Equity or its related term are showing as below:
JSE:CPI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 16.94 Med: 26.69 Max: 31.68
Current: 31.68
During the past 13 years, Capitec Bank Holdings's highest Return-on-Tangible-Equity was 31.68%. The lowest was 16.94%. And the median was 26.69%.
JSE:CPI's Return-on-Tangible-Equity is ranked better than 96.72% of 1523
companies
in the Banks industry
Industry Median: 11.23
vs JSE:CPI: 31.68
Capitec Bank Holdings (JSE:CPI) 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.
Capitec Bank Holdings Return-on-Tangible-Equity Related Terms
Capitec Bank Holdings Return-on-Tangible-Equity Historical Data
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The historical data trend for Capitec Bank Holdings'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.
Capitec Bank Holdings Return-on-Tangible-Equity Chart
JSE:CPI vs PNC, USB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Capitec Bank Holdings'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.
Capitec Bank Holdings Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Capitec Bank Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Capitec Bank Holdings'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 two times the semi-annual (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 32.11% mean?
Capitec Bank Holdings (JSE:CPI) has a Return-on-Tangible-Equity of 32.11% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Capitec Bank Holdings and its competitors. This is 20% above median its historical median of 26.69. Over the past decade, Capitec Bank Holdings' Return-on-Tangible-Equity has ranged from 16.94 to 31.68. According to the industry distribution chart, Capitec Bank Holdings ranks #50 out of 1523 companies in the Banks industry, placing it in the top 3.3%.
Is Capitec Bank Holdings' Return-on-Tangible-Equity too high?
Capitec Bank Holdings' current Return-on-Tangible-Equity of 32.11% is 20% above median its 10-year median of 26.69. Over the past 10 years, this metric has ranged from a low of 16.94 to a high of 31.68. The Banks industry median Return-on-Tangible-Equity is 11.23. Capitec Bank Holdings' value of 32.11% is 185.9% above this industry median. Based on the distribution chart, Capitec Bank Holdings ranks #50 out of 1523 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Capitec Bank Holdings has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Capitec Bank Holdings' Return-on-Tangible-Equity compare to PNC and USB?
According to the Banks industry distribution chart, Capitec Bank Holdings ranks #50 out of 1523 companies for Return-on-Tangible-Equity. This places Capitec Bank Holdings in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.23. Capitec Bank Holdings' value of 32.11% is 185.9% above this benchmark. Historically, Capitec Bank Holdings' own Return-on-Tangible-Equity has ranged from 16.94 to 31.68 over the past decade. While the company's 10-year median is 26.69 vs. the industry median of 11.23, Capitec Bank Holdings 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.23, based on 1,523 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. Capitec Bank Holdings's current Return-on-Tangible-Equity of 32.11% is 185.9% 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 Capitec Bank Holdings and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capitec Bank Holdings's current Return-on-Tangible-Equity is 32.11%, which is 20% above median its own 10-year median of 26.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capitec Bank Holdings stock overvalued right now?
Based on GuruFocus' analysis, Capitec Bank Holdings (JSE:CPI) is currently considered Modestly Overvalued. The stock's GF Value™ is R4,274.87, compared to a current price of R4,738.66 — trading 10.8% above its estimated fair value. The current Return-on-Tangible-Equity is 32.11%, which is 20% above median its 10-year median of 26.69 and 185.9% above the Banks industry median of 11.23. Capitec Bank Holdings' overall GF Score™ is 88/100 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 Capitec Bank Holdings (JSE:CPI), the current Return-on-Tangible-Equity is 32.11% as of Feb. 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 Capitec Bank Holdings (JSE:CPI) Overvalued in 2026?
Based on GuruFocus' analysis, Capitec Bank Holdings stock appears to be overvalued.
The current stock price of R4,738.66 is trading 10.8% above its estimated GF Value™ of R4,274.87.
GuruFocus considers Capitec Bank Holdings to be Modestly Overvalued.
Key valuation signals for JSE:CPI:
Return-on-Tangible-Equity: 32.11% (20% above median its 10-year median of 26.69)
GF Value™: R4,274.87 vs. price of R4,738.66 (10.8% above fair value)
Industry Position: 185.9% above the Banks median (#50 of 1523)
No single metric tells the full story. See the JSE:CPI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capitec Bank Holdings Ltd is a bank holding company along with its subsidiary, which conducts personal and business banking, online consumer lending, rental financing, holds an insurance cell captive, and has an insurance licence for life products. Its segments are Personal Banking, Business Banking, and the Insurance business.
88GF Score
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