Lument Finance TrustLFT +4.37%42 Return-on-Tangible-Equity is 0.38% as of Mar. 2026, which is 92% below its 10-year median of 4.88. GuruFocus rates LFT with a GF Score™ of 42/100 and a GF Value™ of $1.35 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 933 REITs companies, Lument Finance Trust ranks worse than 82.53% 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. Lument Finance Trust's annualized net income for the quarter that ended in Mar. 2026 was $0.83 Mil. Lument Finance Trust's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $216.94 Mil. Therefore, Lument Finance Trust's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 0.38%.
The historical rank and industry rank for Lument Finance Trust's Return-on-Tangible-Equity or its related term are showing as below:
LFT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -6.68 Med: 4.88 Max: 9.49
Current: -0.9
During the past 13 years, Lument Finance Trust's highest Return-on-Tangible-Equity was 9.49%. The lowest was -6.68%. And the median was 4.88%.
LFT's Return-on-Tangible-Equity is ranked worse than 82.53% of 933
companies
in the REITs industry
Industry Median: 6.26
vs LFT: -0.90
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.
Lument Finance Trust Return-on-Tangible-Equity Related Terms
Lument Finance Trust Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lument Finance Trust'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.
LFT vs LOAN, SACH, GPMT: Return-on-Tangible-Equity Comparison
For the REIT - Mortgage subindustry, Lument Finance 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.
Lument Finance Trust Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Lument Finance Trust's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lument Finance Trust'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 0.38% mean?
Lument Finance Trust (LFT) has a Return-on-Tangible-Equity of 0.38% 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 Lument Finance Trust and its competitors. This is 92% below median its historical median of 4.88. According to the industry distribution chart, Lument Finance Trust ranks #770 out of 933 companies in the REITs industry, placing it in the top 82.5%.
Is Lument Finance Trust's Return-on-Tangible-Equity too high?
Lument Finance Trust's current Return-on-Tangible-Equity of 0.38% is 92% below median its 10-year median of 4.88. The REITs industry median Return-on-Tangible-Equity is 6.26. Lument Finance Trust's value of 0.38% is 93.9% below this industry median. Based on the distribution chart, Lument Finance Trust ranks #770 out of 933 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Lument Finance Trust has a GF Score™ of 42/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lument Finance Trust's Return-on-Tangible-Equity compare to LOAN and SACH?
According to the REITs industry distribution chart, Lument Finance Trust ranks #770 out of 933 companies for Return-on-Tangible-Equity. This places Lument Finance Trust in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.26. Lument Finance Trust's value of 0.38% is 93.9% below this benchmark. While the company's 10-year median is 4.88 vs. the industry median of 6.26, Lument Finance Trust has consistently been below 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 6.26, based on 933 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. Lument Finance Trust's current Return-on-Tangible-Equity of 0.38% is 93.9% below 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 Lument Finance Trust and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lument Finance Trust's current Return-on-Tangible-Equity is 0.38%, which is 92% below median its own 10-year median of 4.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lument Finance Trust stock overvalued right now?
Based on GuruFocus' analysis, Lument Finance Trust (LFT) is currently considered Modestly Undervalued. The stock's GF Value™ is $1.35, compared to a current price of $0.98 — trading 27.4% below its estimated fair value. The current Return-on-Tangible-Equity is 0.38%, which is 92% below median its 10-year median of 4.88 and 93.9% below the REITs industry median of 6.26. Lument Finance Trust's overall GF Score™ is 42/100 with 3 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 Lument Finance Trust (LFT), the current Return-on-Tangible-Equity is 0.38% 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 Lument Finance Trust (LFT) Overvalued in 2026?
Based on GuruFocus' analysis, Lument Finance Trust stock appears to be undervalued.
The current stock price of $0.98 is trading 27.4% below its estimated GF Value™ of $1.35.
GuruFocus considers Lument Finance Trust to be Modestly Undervalued.
Key valuation signals for LFT:
Return-on-Tangible-Equity: 0.38% (92% below median its 10-year median of 4.88)
GF Value™: $1.35 vs. price of $0.98 (27.4% below fair value)
Industry Position: 93.9% below the REITs median (#770 of 933)
No single metric tells the full story. See the LFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lument Finance Trust Inc operates as a real estate investment trust. The company is engaged in investment, financing, and management of a portfolio of commercial real estate debt investments. It invests in transitional floating-rate commercial real estate mortgage loans, mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed-rate loans, construction loans, and other CRE debt instruments.
42GF Score
Get the complete analysis for LFT
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LFT has been successfully added to your 
