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. Trustco Group Holdings's annualized net income for the quarter that ended in Feb. 2024 was R221.13 Mil. Trustco Group Holdings's average shareholder tangible equity for the quarter that ended in Feb. 2024 was R1,214.20 Mil. Therefore, Trustco Group Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2024 was 18.21%.
The historical rank and industry rank for Trustco Group Holdings's Return-on-Tangible-Equity or its related term are showing as below:
JSE:TTO's Return-on-Tangible-Equity is not ranked *
in the Asset Management industry.
Industry Median: 7.12 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Trustco Group Holdings (JSE:TTO) 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.
Trustco Group Holdings Return-on-Tangible-Equity Related Terms
Trustco Group Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Trustco Group 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.
Trustco Group Holdings Return-on-Tangible-Equity Chart
JSE:TTO vs BLK, BX, KKR: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Trustco Group 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.
Trustco Group Holdings Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Trustco Group Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Trustco Group 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. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 18.21% mean?
Trustco Group Holdings (JSE:TTO) has a Return-on-Tangible-Equity of 18.21% as of Feb. 2024. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Trustco Group Holdings and its competitors.
Is Trustco Group Holdings' Return-on-Tangible-Equity too high?
Trustco Group Holdings' current Return-on-Tangible-Equity is 18.21%. The Asset Management industry median Return-on-Tangible-Equity is 7.12. Trustco Group Holdings' value of 18.21% is 155.8% above this industry median. Overall, Trustco Group Holdings has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Trustco Group Holdings' Return-on-Tangible-Equity compare to BLK and BX?
Trustco Group Holdings' Return-on-Tangible-Equity of 18.21% can be compared against companies in the Asset Management industry. The industry median Return-on-Tangible-Equity is 7.12. Trustco Group Holdings' value of 18.21% is 155.8% 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 7.12, based on 1,590 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. Trustco Group Holdings's current Return-on-Tangible-Equity of 18.21% is 155.8% 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 Trustco Group Holdings and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trustco Group Holdings's current Return-on-Tangible-Equity is 18.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trustco Group Holdings stock overvalued right now?
Trustco Group Holdings (JSE:TTO) has a current Return-on-Tangible-Equity of 18.21%. The current Return-on-Tangible-Equity is 18.21% and 155.8% above the Asset Management industry median of 7.12. Trustco Group Holdings' overall GF Score™ is 11/100. 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 Trustco Group Holdings (JSE:TTO), the current Return-on-Tangible-Equity is 18.21% as of Feb. 2024. 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.
Trustco Group Holdings Ltd engages in the provision of financial services. The company's operating segment includes Financial Services and Resources. The Financial Services portfolio earns income from insurance premiums, property sales, rental income, investment property activities, banking and finance activities, interest, fees, and commissions from customers, and tuition income. The Resources portfolio conducts mining operations in Namibia and Sierra Leone. The company earns maximum revenue through Micro-Finance.
11GF Score
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