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Merchants Financial GroupMFGI 49 Return-on-Tangible-Equity is 12.57% as of Jun. 2026, which is 8% below its 10-year median of 13.70. GuruFocus rates MFGI with a GF Score™ of 49/100 and a GF Value™ of $28.33 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,522 Banks companies, Merchants Financial Group ranks better than 65.37% 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 Financial Group's annualized net income for the quarter that ended in Jun. 2026 was $33.2 Mil. Merchants Financial Group's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $264.5 Mil. Therefore, Merchants Financial Group's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 12.57%.
The historical rank and industry rank for Merchants Financial Group's Return-on-Tangible-Equity or its related term are showing as below:
MFGI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.47 Med: 13.7 Max: 17.13
Current: 13.68
During the past 7 years, Merchants Financial Group's highest Return-on-Tangible-Equity was 17.13%. The lowest was 8.47%. And the median was 13.70%.
MFGI's Return-on-Tangible-Equity is ranked better than 65.37% of 1522
companies
in the Banks industry
Industry Median: 11.375
vs MFGI: 13.68
Merchants Financial Group (OTCPK:MFGI) 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.
Merchants Financial Group Return-on-Tangible-Equity Related Terms
Merchants Financial Group Return-on-Tangible-Equity Historical Data
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The historical data trend for Merchants Financial 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.
Merchants Financial Group Return-on-Tangible-Equity Chart
MFGI vs BFCC, TSBK, MSBC: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Merchants Financial 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.
Merchants Financial Group Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Merchants Financial Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Merchants Financial 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 four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.57% mean?
Merchants Financial Group (MFGI) has a Return-on-Tangible-Equity of 12.57% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Merchants Financial Group and its competitors. This is near median its historical median of 13.70. Over the past decade, Merchants Financial Group's Return-on-Tangible-Equity has ranged from 8.47 to 17.13. According to the industry distribution chart, Merchants Financial Group ranks #527 out of 1522 companies in the Banks industry, placing it in the top 34.6%.
Is Merchants Financial Group's Return-on-Tangible-Equity too high?
Merchants Financial Group's current Return-on-Tangible-Equity of 12.57% is near median its 10-year median of 13.70. Over the past 10 years, this metric has ranged from a low of 8.47 to a high of 17.13. The Banks industry median Return-on-Tangible-Equity is 11.38. Merchants Financial Group's value of 12.57% is 10.5% above this industry median. Based on the distribution chart, Merchants Financial Group ranks #527 out of 1522 companies in the Banks industry, which is above the industry midpoint. Overall, Merchants Financial Group has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Merchants Financial Group's Return-on-Tangible-Equity compare to BFCC and TSBK?
According to the Banks industry distribution chart, Merchants Financial Group ranks #527 out of 1522 companies for Return-on-Tangible-Equity. This puts Merchants Financial Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.38. Merchants Financial Group's value of 12.57% is 10.5% above this benchmark. Historically, Merchants Financial Group's own Return-on-Tangible-Equity has ranged from 8.47 to 17.13 over the past decade. While the company's 10-year median is 13.70 vs. the industry median of 11.38, Merchants Financial 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.38, based on 1,522 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 Financial Group's current Return-on-Tangible-Equity of 12.57% is 10.5% 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 Financial Group and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merchants Financial Group's current Return-on-Tangible-Equity is 12.57%, which is near median its own 10-year median of 13.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merchants Financial Group stock overvalued right now?
Based on GuruFocus' analysis, Merchants Financial Group (MFGI) is currently considered Significantly Overvalued. The stock's GF Value™ is $28.33, compared to a current price of $41.35 — trading 46% above its estimated fair value. The current Return-on-Tangible-Equity is 12.57%, which is near median its 10-year median of 13.70 and 10.5% above the Banks industry median of 11.38. Merchants Financial Group's overall GF Score™ is 49/100 with 4 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 Financial Group (MFGI), the current Return-on-Tangible-Equity is 12.57% as of Jun. 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 Financial Group (MFGI) Overvalued in 2026?
Based on GuruFocus' analysis, Merchants Financial Group stock appears to be overvalued.
The current stock price of $41.35 is trading 46% above its estimated GF Value™ of $28.33.
GuruFocus considers Merchants Financial Group to be Significantly Overvalued.
Key valuation signals for MFGI:
Return-on-Tangible-Equity: 12.57% (near median its 10-year median of 13.70)
GF Value™: $28.33 vs. price of $41.35 (46% above fair value)
Industry Position: 10.5% above the Banks median (#527 of 1522)
No single metric tells the full story. See the MFGI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merchants Financial Group Inc is a bank holding company. Through its banking subsidiary, it provides retail, commercial loans, and deposit services to individual as well as business customers. The various products and services offered by the Group include business credit cards, treasury management services, online and mobile banking services, different types of loans, checking accounts, saving accounts, digital wallet, military banking services, mortgage loans, etc. These services are offered through a network of branch offices and a leasing division across Winona, Goodview, Rushford, Lanesboro, St. Charles, Rochester, La Crescent, Caledonia, Spring Grove, and other locations in the USA.
49GF Score
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