RTC GroupLSE:RTC -1.49%60 Return-on-Tangible-Equity is 24.46% as of Dec. 2025, which is 2% below its 10-year median of 24.85. GuruFocus rates LSE:RTC with a GF Score™ of 60/100 and a GF Value™ of £0.84 (Modestly Overvalued). Among 1,009 Business Services companies, RTC Group ranks better than 72.65% 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. RTC Group's annualized net income for the quarter that ended in Dec. 2025 was £1.85 Mil. RTC Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was £7.57 Mil. Therefore, RTC Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 24.46%.
The historical rank and industry rank for RTC Group's Return-on-Tangible-Equity or its related term are showing as below:
LSE:RTC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -5.67 Med: 24.85 Max: 34.93
Current: 23.73
During the past 13 years, RTC Group's highest Return-on-Tangible-Equity was 34.93%. The lowest was -5.67%. And the median was 24.85%.
LSE:RTC's Return-on-Tangible-Equity is ranked better than 72.65% of 1009
companies
in the Business Services industry
Industry Median: 10.56
vs LSE:RTC: 23.73
RTC Group (LSE:RTC) 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.
RTC Group Return-on-Tangible-Equity Related Terms
RTC Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for RTC Group'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:RTC vs KFY, RHI, TNET: Return-on-Tangible-Equity Comparison
For the Staffing & Employment Services subindustry, RTC Group'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.
RTC Group Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, RTC Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where RTC Group'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 (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 24.46% mean?
RTC Group (LSE:RTC) has a Return-on-Tangible-Equity of 24.46% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on RTC Group and its competitors. This is near median its historical median of 24.85. According to the industry distribution chart, RTC Group ranks #276 out of 1009 companies in the Business Services industry, placing it in the top 27.4%.
Is RTC Group's Return-on-Tangible-Equity too high?
RTC Group's current Return-on-Tangible-Equity of 24.46% is near median its 10-year median of 24.85. The Business Services industry median Return-on-Tangible-Equity is 10.56. RTC Group's value of 24.46% is 131.6% above this industry median. Based on the distribution chart, RTC Group ranks #276 out of 1009 companies in the Business Services industry, which is above the industry midpoint. Overall, RTC Group has a GF Score™ of 60/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does RTC Group's Return-on-Tangible-Equity compare to KFY and RHI?
According to the Business Services industry distribution chart, RTC Group ranks #276 out of 1009 companies for Return-on-Tangible-Equity. This puts RTC Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.56. RTC Group's value of 24.46% is 131.6% above this benchmark. While the company's 10-year median is 24.85 vs. the industry median of 10.56, RTC Group 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 a Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.56, based on 1,009 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. RTC Group's current Return-on-Tangible-Equity of 24.46% is 131.6% 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 RTC Group and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RTC Group's current Return-on-Tangible-Equity is 24.46%, which is near median its own 10-year median of 24.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RTC Group stock overvalued right now?
Based on GuruFocus' analysis, RTC Group (LSE:RTC) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.84, compared to a current price of £1.00 — trading 18.5% above its estimated fair value. The current Return-on-Tangible-Equity is 24.46%, which is near median its 10-year median of 24.85 and 131.6% above the Business Services industry median of 10.56. RTC Group's overall GF Score™ is 60/100. 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 RTC Group (LSE:RTC), the current Return-on-Tangible-Equity is 24.46% as of Dec. 2025. 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 RTC Group (LSE:RTC) Overvalued in 2026?
Based on GuruFocus' analysis, RTC Group stock appears to be overvalued.
The current stock price of £1.00 is trading 18.5% above its estimated GF Value™ of £0.84.
GuruFocus considers RTC Group to be Modestly Overvalued.
Key valuation signals for LSE:RTC:
Return-on-Tangible-Equity: 24.46% (near median its 10-year median of 24.85)
GF Value™: £0.84 vs. price of £1.00 (18.5% above fair value)
Industry Position: 131.6% above the Business Services median (#276 of 1009)
No single metric tells the full story. See the LSE:RTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RTC Group PLC is a holding company. Along with its subsidiaries, it is engaged in the provision of engineering and technical recruitment services that provide temporary and permanent labor to a broad range of industries and customers in both domestic and international markets. It focuses on white and blue-collar recruitment, providing temporary, permanent, and contingent staff to a range of industries and clients in both domestic and international markets. The Group's operating segments include UK Recruitment, UK Central Services, and International Recruitment. The majority of its revenues are generated from the UK Recruitment segment. Geographically, the group derives maximum revenue from the United Kingdom, and the rest from the United States and the Middle East.
60GF Score
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