LM Funding AmericaLMFA -0.83%26 Return-on-Tangible-Equity is -208.33% as of Mar. 2026. GuruFocus rates LMFA with a GF Score™ of 26/100 and a GF Value™ of $0.50 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 783 Capital Markets companies, LM Funding America ranks worse than 97.06% 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. LM Funding America's annualized net income for the quarter that ended in Mar. 2026 was $-40.48 Mil. LM Funding America's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $19.43 Mil. Therefore, LM Funding America's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -208.33%.
The historical rank and industry rank for LM Funding America's Return-on-Tangible-Equity or its related term are showing as below:
LMFA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -340.58 Med: -49.31 Max: 13.18
Current: -126.52
During the past 13 years, LM Funding America's highest Return-on-Tangible-Equity was 13.18%. The lowest was -340.58%. And the median was -49.31%.
LMFA's Return-on-Tangible-Equity is ranked worse than 97.06% of 783
companies
in the Capital Markets industry
Industry Median: 6.45
vs LMFA: -126.52
LM Funding America (NAS:LMFA) 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.
LM Funding America Return-on-Tangible-Equity Related Terms
LM Funding America Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for LM Funding America'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.
LM Funding America Return-on-Tangible-Equity Chart
LMFA vs IPST, MWAI, LGHL: Return-on-Tangible-Equity Comparison
For the Capital Markets subindustry, LM Funding America'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.
LM Funding America Return-on-Tangible-Equity vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LM Funding America's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where LM Funding America'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 -208.33% mean?
LM Funding America (LMFA) has a Return-on-Tangible-Equity of -208.33% 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 LM Funding America and its competitors. According to the industry distribution chart, LM Funding America ranks #760 out of 783 companies in the Capital Markets industry, placing it in the top 97.1%.
Is LM Funding America's Return-on-Tangible-Equity too high?
LM Funding America's current Return-on-Tangible-Equity is -208.33%. Based on the distribution chart, LM Funding America ranks #760 out of 783 companies in the Capital Markets industry, which is in the bottom quartile relative to peers. Overall, LM Funding America has a GF Score™ of 26/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does LM Funding America's Return-on-Tangible-Equity compare to IPST and MWAI?
According to the Capital Markets industry distribution chart, LM Funding America ranks #760 out of 783 companies for Return-on-Tangible-Equity. This places LM Funding America in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.45. 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 Capital Markets company?
The median Return-on-Tangible-Equity among Capital Markets companies is 6.45, based on 783 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 LM Funding America and its competitors. For the Capital Markets industry, the median Return-on-Tangible-Equity is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LM Funding America's current Return-on-Tangible-Equity is -208.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LM Funding America stock overvalued right now?
Based on GuruFocus' analysis, LM Funding America (LMFA) is currently considered Possible Value Trap. The stock's GF Value™ is $0.50, compared to a current price of $0.14 — trading 71.2% below its estimated fair value. The current Return-on-Tangible-Equity is -208.33%. LM Funding America's overall GF Score™ is 26/100 with 5 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 LM Funding America (LMFA), the current Return-on-Tangible-Equity is -208.33% 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 LM Funding America (LMFA) Overvalued in 2026?
Based on GuruFocus' analysis, LM Funding America stock appears to be undervalued.
The current stock price of $0.14 is trading 71.2% below its estimated GF Value™ of $0.50.
GuruFocus considers LM Funding America to be Possible Value Trap.
Key valuation signals for LMFA:
Return-on-Tangible-Equity: -208.33%
GF Value™: $0.50 vs. price of $0.14 (71.2% below fair value)
No single metric tells the full story. See the LMFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LM Funding America Inc is a financial services company. The company provides funding to nonprofit community associations located in the state of Florida and to nonprofit community associations in the states of Washington and Colorado. Its products include Original Product and New Neighbor Guaranty. Its original product offering consists of providing funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. It currently has two lines of business recently commenced cryptocurrency mining business and historical specialty finance business. The Company has two operating segments: Specialty Finance and Mining and Treasury Operations.
26GF Score
Get the complete analysis for LMFA
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
LMFA has been successfully added to your 
