Merchants BancorpMBIN -0.71%78 Return-on-Tangible-Equity is 13.06% as of Mar. 2026, which is 35% below its 10-year median of 20.07. GuruFocus rates MBIN with a GF Score™ of 78/100 and a GF Value™ of $42.62 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 1,523 Banks companies, Merchants Bancorp ranks better than 50.95% 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 Bancorp's annualized net income for the quarter that ended in Mar. 2026 was $270.9 Mil. Merchants Bancorp's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $2,074.0 Mil. Therefore, Merchants Bancorp's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.06%.
The historical rank and industry rank for Merchants Bancorp's Return-on-Tangible-Equity or its related term are showing as below:
MBIN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.67 Med: 20.07 Max: 28.44
Current: 11.3
During the past 11 years, Merchants Bancorp's highest Return-on-Tangible-Equity was 28.44%. The lowest was 10.67%. And the median was 20.07%.
MBIN's Return-on-Tangible-Equity is ranked better than 50.95% of 1523
companies
in the Banks industry
Industry Median: 11.2
vs MBIN: 11.30
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 Bancorp Return-on-Tangible-Equity Related Terms
Merchants Bancorp Return-on-Tangible-Equity Historical Data
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The historical data trend for Merchants Bancorp'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.
MBIN vs BANR, BLX, HAPN: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Merchants Bancorp'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 Bancorp Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Merchants Bancorp's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Merchants Bancorp'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 13.06% mean?
Merchants Bancorp (MBIN) has a Return-on-Tangible-Equity of 13.06% 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 Merchants Bancorp and its competitors. This is 35% below median its historical median of 20.07. Over the past decade, Merchants Bancorp's Return-on-Tangible-Equity has ranged from 10.67 to 28.44. According to the industry distribution chart, Merchants Bancorp ranks #747 out of 1523 companies in the Banks industry, placing it in the top 49%.
Is Merchants Bancorp's Return-on-Tangible-Equity too high?
Merchants Bancorp's current Return-on-Tangible-Equity of 13.06% is 35% below median its 10-year median of 20.07. Over the past 10 years, this metric has ranged from a low of 10.67 to a high of 28.44. The Banks industry median Return-on-Tangible-Equity is 11.20. Merchants Bancorp's value of 13.06% is 16.6% above this industry median. Based on the distribution chart, Merchants Bancorp ranks #747 out of 1523 companies in the Banks industry, which is above the industry midpoint. Overall, Merchants Bancorp has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Merchants Bancorp's Return-on-Tangible-Equity compare to BANR and BLX?
According to the Banks industry distribution chart, Merchants Bancorp ranks #747 out of 1523 companies for Return-on-Tangible-Equity. This puts Merchants Bancorp in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.20. Merchants Bancorp's value of 13.06% is 16.6% above this benchmark. Historically, Merchants Bancorp's own Return-on-Tangible-Equity has ranged from 10.67 to 28.44 over the past decade. While the company's 10-year median is 20.07 vs. the industry median of 11.20, Merchants Bancorp 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.20, based on 1,523 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 Bancorp's current Return-on-Tangible-Equity of 13.06% is 16.6% 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 Merchants Bancorp and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merchants Bancorp's current Return-on-Tangible-Equity is 13.06%, which is 35% below median its own 10-year median of 20.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merchants Bancorp stock overvalued right now?
Based on GuruFocus' analysis, Merchants Bancorp (MBIN) is currently considered Modestly Overvalued. The stock's GF Value™ is $42.62, compared to a current price of $50.00 — trading 17.3% above its estimated fair value. The current Return-on-Tangible-Equity is 13.06%, which is 35% below median its 10-year median of 20.07 and 16.6% above the Banks industry median of 11.20. Merchants Bancorp's overall GF Score™ is 78/100 with 10 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 Bancorp (MBIN), the current Return-on-Tangible-Equity is 13.06% 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 Merchants Bancorp (MBIN) Overvalued in 2026?
Based on GuruFocus' analysis, Merchants Bancorp stock appears to be overvalued.
The current stock price of $50.00 is trading 17.3% above its estimated GF Value™ of $42.62.
GuruFocus considers Merchants Bancorp to be Modestly Overvalued.
Key valuation signals for MBIN:
Return-on-Tangible-Equity: 13.06% (35% below median its 10-year median of 20.07)
GF Value™: $42.62 vs. price of $50.00 (17.3% above fair value)
Industry Position: 16.6% above the Banks median (#747 of 1523)
No single metric tells the full story. See the MBIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merchants Bancorp is a United States-based bank holding company operating multiple lines of business focused on FHA multi-family housing and healthcare facility financing and servicing, retail and correspondent residential mortgage banking, and traditional community banking. Its segments include Multi-family Mortgage Banking, which originates and services government-sponsored mortgages for multi-family and healthcare facilities; Mortgage Warehousing, which offers mortgage warehouse financing, commercial loans and deposit services; and the Banking segment, which generates maximum revenue and provides portfolio lending for multi-family and healthcare facility loans, residential mortgage banking, agricultural lending, SBA lending and community banking.
78GF Score
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