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Merchants Trust (The)LSE:MRCH +0.15%39 Return-on-Tangible-Equity is 25.47% as of Jan. 2026, which is 97% above its 10-year median of 12.94. GuruFocus rates LSE:MRCH with a GF Score™ of 39/100. The stock has 5 warning signs investors should review. Among 1,591 Asset Management companies, Merchants Trust (The) ranks better than 75.24% 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. Merchants Trust (The)'s annualized net income for the quarter that ended in Jan. 2026 was £234.1 Mil. Merchants Trust (The)'s average shareholder tangible equity for the quarter that ended in Jan. 2026 was £919.0 Mil. Therefore, Merchants Trust (The)'s annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2026 was 25.47%.
The historical rank and industry rank for Merchants Trust (The)'s Return-on-Tangible-Equity or its related term are showing as below:
LSE:MRCH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -11.61 Med: 12.94 Max: 28.17
Current: 18.13
During the past 13 years, Merchants Trust (The)'s highest Return-on-Tangible-Equity was 28.17%. The lowest was -11.61%. And the median was 12.94%.
LSE:MRCH's Return-on-Tangible-Equity is ranked better than 75.24% of 1591
companies
in the Asset Management industry
Industry Median: 7.21
vs LSE:MRCH: 18.13
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.
Merchants Trust (The) Return-on-Tangible-Equity Related Terms
Merchants Trust (The) Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Merchants Trust (The)'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:MRCH vs BLK, BX, KKR: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Merchants Trust (The)'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.
Merchants Trust (The) Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Merchants Trust (The)'s Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Merchants Trust (The)'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 (Jan. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 25.47% mean?
Merchants Trust (The) (LSE:MRCH) has a Return-on-Tangible-Equity of 25.47% as of Jan. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Merchants Trust (The) and its competitors. This is 97% above median its historical median of 12.94. According to the industry distribution chart, Merchants Trust (The) ranks #394 out of 1591 companies in the Asset Management industry, placing it in the top 24.8%.
Is Merchants Trust (The)'s Return-on-Tangible-Equity too high?
Merchants Trust (The)'s current Return-on-Tangible-Equity of 25.47% is 97% above median its 10-year median of 12.94. The Asset Management industry median Return-on-Tangible-Equity is 7.21. Merchants Trust (The)'s value of 25.47% is 253.3% above this industry median. Based on the distribution chart, Merchants Trust (The) ranks #394 out of 1591 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Merchants Trust (The) has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Merchants Trust (The)'s Return-on-Tangible-Equity compare to BLK and BX?
According to the Asset Management industry distribution chart, Merchants Trust (The) ranks #394 out of 1591 companies for Return-on-Tangible-Equity. This places Merchants Trust (The) in the top 25% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.21. Merchants Trust (The)'s value of 25.47% is 253.3% above this benchmark. While the company's 10-year median is 12.94 vs. the industry median of 7.21, Merchants Trust (The) 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 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. Merchants Trust (The)'s current Return-on-Tangible-Equity of 25.47% is 253.3% 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 Merchants Trust (The) 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. Merchants Trust (The)'s current Return-on-Tangible-Equity is 25.47%, which is 97% above median its own 10-year median of 12.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merchants Trust (The) stock overvalued right now?
Merchants Trust (The) (LSE:MRCH) has a current Return-on-Tangible-Equity of 25.47%. The current Return-on-Tangible-Equity is 25.47%, which is 97% above median its 10-year median of 12.94 and 253.3% above the Asset Management industry median of 7.21. Merchants Trust (The)'s overall GF Score™ is 39/100 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 Merchants Trust (The) (LSE:MRCH), the current Return-on-Tangible-Equity is 25.47% as of Jan. 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.
Merchants Trust (The) PLC is an investment trust. Its objective is to provide an above-average level of income and income growth together with long-term capital growth through a policy of investing mainly in higher-yielding large UK companies. Its performance is benchmarked against the FTSE All-Share Index.
39GF Score
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