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. Credito RealB de CV Sofom ER's annualized net income for the quarter that ended in Sep. 2021 was MXN814 Mil. Credito RealB de CV Sofom ER's average shareholder tangible equity for the quarter that ended in Sep. 2021 was MXN14,343 Mil. Therefore, Credito RealB de CV Sofom ER's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2021 was 5.68%.
The historical rank and industry rank for Credito RealB de CV Sofom ER's Return-on-Tangible-Equity or its related term are showing as below:
MEX:CREAL's Return-on-Tangible-Equity is not ranked *
in the Credit Services industry.
Industry Median: 7.01 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Credito RealB de CV Sofom ER (MEX:CREAL) 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.
Credito RealB de CV Sofom ER Return-on-Tangible-Equity Related Terms
Credito RealB de CV Sofom ER Return-on-Tangible-Equity Historical Data
* 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.
Credito RealB de CV Sofom ER Return-on-Tangible-Equity Chart
MEX:CREAL vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Credito RealB de CV Sofom ER'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.
Credito RealB de CV Sofom ER Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Credito RealB de CV Sofom ER's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Credito RealB de CV Sofom ER'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 (Sep. 2021) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 5.68% mean?
Credito RealB de CV Sofom ER (MEX:CREAL) has a Return-on-Tangible-Equity of 5.68% as of Sep. 2021. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Credito RealB de CV Sofom ER and its competitors.
Is Credito RealB de CV Sofom ER's Return-on-Tangible-Equity too high?
Credito RealB de CV Sofom ER's current Return-on-Tangible-Equity is 5.68%. The Credit Services industry median Return-on-Tangible-Equity is 7.01. Credito RealB de CV Sofom ER's value of 5.68% is 19% below this industry median. Overall, Credito RealB de CV Sofom ER has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Credito RealB de CV Sofom ER's Return-on-Tangible-Equity compare to V and MA?
Credito RealB de CV Sofom ER's Return-on-Tangible-Equity of 5.68% can be compared against companies in the Credit Services industry. The industry median Return-on-Tangible-Equity is 7.01. Credito RealB de CV Sofom ER's value of 5.68% is 19% below this benchmark. 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 Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.01, based on 525 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. Credito RealB de CV Sofom ER's current Return-on-Tangible-Equity of 5.68% is 19% below 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 Credito RealB de CV Sofom ER and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Credito RealB de CV Sofom ER's current Return-on-Tangible-Equity is 5.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Credito RealB de CV Sofom ER stock overvalued right now?
Credito RealB de CV Sofom ER (MEX:CREAL) has a current Return-on-Tangible-Equity of 5.68%. The current Return-on-Tangible-Equity is 5.68% and 19% below the Credit Services industry median of 7.01. Credito RealB de CV Sofom ER's overall GF Score™ is 8/100. 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 Credito RealB de CV Sofom ER (MEX:CREAL), the current Return-on-Tangible-Equity is 5.68% as of Sep. 2021. 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.
Credito Real SAB de CV Sofom ER is a nonbanking financial institution in Mexico that focuses on consumer lending to low-income and middle-income customers. The company mainly makes payroll loans, durable goods loans, small business loans, group loans, and used-car loans.
8GF Score
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