Mercia Asset ManagementLSE:MERC 58 Return-on-Tangible-Equity is -13.79% as of Mar. 2026. GuruFocus rates LSE:MERC with a GF Score™ of 58/100 and a GF Value™ of £0.33 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,591 Asset Management companies, Mercia Asset Management ranks worse than 83.85% 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. Mercia Asset Management's annualized net income for the quarter that ended in Mar. 2026 was £-20.58 Mil. Mercia Asset Management's average shareholder tangible equity for the quarter that ended in Mar. 2026 was £149.27 Mil. Therefore, Mercia Asset Management's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -13.79%.
The historical rank and industry rank for Mercia Asset Management's Return-on-Tangible-Equity or its related term are showing as below:
LSE:MERC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -15.87 Med: 1.61 Max: 27.97
Current: -5.7
During the past 13 years, Mercia Asset Management's highest Return-on-Tangible-Equity was 27.97%. The lowest was -15.87%. And the median was 1.61%.
LSE:MERC's Return-on-Tangible-Equity is ranked worse than 83.85% of 1591
companies
in the Asset Management industry
Industry Median: 7.21
vs LSE:MERC: -5.70
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.
Mercia Asset Management Return-on-Tangible-Equity Related Terms
Mercia Asset Management Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Mercia Asset Management'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.
LSE:MERC vs BLK, BX, KKR: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Mercia Asset Management'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.
Mercia Asset Management Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Mercia Asset Management's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Mercia Asset Management'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 (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 -13.79% mean?
Mercia Asset Management (LSE:MERC) has a Return-on-Tangible-Equity of -13.79% 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 Mercia Asset Management and its competitors. According to the industry distribution chart, Mercia Asset Management ranks #1334 out of 1591 companies in the Asset Management industry, placing it in the top 83.8%.
Is Mercia Asset Management's Return-on-Tangible-Equity too high?
Mercia Asset Management's current Return-on-Tangible-Equity is -13.79%. Based on the distribution chart, Mercia Asset Management ranks #1334 out of 1591 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Mercia Asset Management has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mercia Asset Management's Return-on-Tangible-Equity compare to BLK and BX?
According to the Asset Management industry distribution chart, Mercia Asset Management ranks #1334 out of 1591 companies for Return-on-Tangible-Equity. This places Mercia Asset Management in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.21. 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 7.21, based on 1,591 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 Mercia Asset Management and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercia Asset Management's current Return-on-Tangible-Equity is -13.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercia Asset Management stock overvalued right now?
Based on GuruFocus' analysis, Mercia Asset Management (LSE:MERC) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.33, compared to a current price of £0.27 — trading 19.7% below its estimated fair value. The current Return-on-Tangible-Equity is -13.79%. Mercia Asset Management's overall GF Score™ is 58/100 with 6 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 Mercia Asset Management (LSE:MERC), the current Return-on-Tangible-Equity is -13.79% 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 Mercia Asset Management (LSE:MERC) Overvalued in 2026?
Based on GuruFocus' analysis, Mercia Asset Management stock appears to be undervalued.
The current stock price of £0.27 is trading 19.7% below its estimated GF Value™ of £0.33.
GuruFocus considers Mercia Asset Management to be Modestly Undervalued.
Key valuation signals for LSE:MERC:
Return-on-Tangible-Equity: -13.79%
GF Value™: £0.33 vs. price of £0.27 (19.7% below fair value)
No single metric tells the full story. See the LSE:MERC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercia Asset Management PLC is a specialist asset manager focusing on supporting regional SMEs. The company provides capital across its four asset classes proprietary balance sheet capital, venture capital, private equity, and debt. The company initially nurtures businesses via its third-party funds under management and then, over time, provides further funding to the companies by deploying direct investment follow-on capital from its balance sheet. It has more than eight offices in the UK region, approx. 20 university partnerships and extensive personal networks, providing it with access to high-quality deal flow.
58GF Score
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