Essex Property TrustMEX:ESS 78 Return-on-Tangible-Equity is 7.74% as of Mar. 2026, which is 8% above its 10-year median of 7.17. GuruFocus rates MEX:ESS with a GF Score™ of 78/100 and a GF Value™ of MXN3,852.15. The stock has 12 warning signs investors should review. Among 932 REITs companies, Essex Property Trust ranks better than 72.75% 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. Essex Property Trust's annualized net income for the quarter that ended in Mar. 2026 was MXN7,659 Mil. Essex Property Trust's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN98,897 Mil. Therefore, Essex Property Trust's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.74%.
The historical rank and industry rank for Essex Property Trust's Return-on-Tangible-Equity or its related term are showing as below:
MEX:ESS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.22 Med: 7.17 Max: 13.53
Current: 10.3
During the past 13 years, Essex Property Trust's highest Return-on-Tangible-Equity was 13.53%. The lowest was 6.22%. And the median was 7.17%.
MEX:ESS's Return-on-Tangible-Equity is ranked better than 72.75% of 932
companies
in the REITs industry
Industry Median: 6.29
vs MEX:ESS: 10.30
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.
Essex Property Trust Return-on-Tangible-Equity Related Terms
Essex Property Trust Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Essex Property Trust'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.
MEX:ESS vs INVH, SUI, MAA: Return-on-Tangible-Equity Comparison
For the REIT - Residential subindustry, Essex Property Trust'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.
Essex Property Trust Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Essex Property Trust's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Essex Property Trust'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 7.74% mean?
Essex Property Trust (MEX:ESS) has a Return-on-Tangible-Equity of 7.74% 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 Essex Property Trust and its competitors. This is near median its historical median of 7.17. Over the past decade, Essex Property Trust's Return-on-Tangible-Equity has ranged from 6.22 to 13.53. According to the industry distribution chart, Essex Property Trust ranks #254 out of 932 companies in the REITs industry, placing it in the top 27.3%.
Is Essex Property Trust's Return-on-Tangible-Equity too high?
Essex Property Trust's current Return-on-Tangible-Equity of 7.74% is near median its 10-year median of 7.17. Over the past 10 years, this metric has ranged from a low of 6.22 to a high of 13.53. The REITs industry median Return-on-Tangible-Equity is 6.29. Essex Property Trust's value of 7.74% is 23.1% above this industry median. Based on the distribution chart, Essex Property Trust ranks #254 out of 932 companies in the REITs industry, which is above the industry midpoint. Overall, Essex Property Trust has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Essex Property Trust's Return-on-Tangible-Equity compare to INVH and SUI?
According to the REITs industry distribution chart, Essex Property Trust ranks #254 out of 932 companies for Return-on-Tangible-Equity. This puts Essex Property Trust in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.29. Essex Property Trust's value of 7.74% is 23.1% above this benchmark. Historically, Essex Property Trust's own Return-on-Tangible-Equity has ranged from 6.22 to 13.53 over the past decade. While the company's 10-year median is 7.17 vs. the industry median of 6.29, Essex Property Trust 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 REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.29, based on 932 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. Essex Property Trust's current Return-on-Tangible-Equity of 7.74% is 23.1% 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 Essex Property Trust and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essex Property Trust's current Return-on-Tangible-Equity is 7.74%, which is near median its own 10-year median of 7.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essex Property Trust stock overvalued right now?
Essex Property Trust (MEX:ESS) has a current Return-on-Tangible-Equity of 7.74%. The stock's GF Value™ is MXN3,852.15, compared to a current price of MXN4,081.12 — trading 5.9% above its estimated fair value. The current Return-on-Tangible-Equity is 7.74%, which is near median its 10-year median of 7.17 and 23.1% above the REITs industry median of 6.29. Essex Property Trust's overall GF Score™ is 78/100 with 12 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 Essex Property Trust (MEX:ESS), the current Return-on-Tangible-Equity is 7.74% 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 Essex Property Trust (MEX:ESS) Overvalued in 2026?
Based on GuruFocus' analysis, Essex Property Trust stock appears to be overvalued.
The current stock price of MXN4,081.12 is trading 5.9% above its estimated GF Value™ of MXN3,852.15.
Key valuation signals for MEX:ESS:
Return-on-Tangible-Equity: 7.74% (near median its 10-year median of 7.17)
GF Value™: MXN3,852.15 vs. price of MXN4,081.12 (5.9% above fair value)
Industry Position: 23.1% above the REITs median (#254 of 932)
No single metric tells the full story. See the MEX:ESS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Essex Property Trust owns a portfolio of 259 apartment communities with over 63,000 units. The company focuses on owning large, high-quality properties on the West Coast in the urban and suburban submarkets of Southern California, Northern California, and Seattle.
78GF Score
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