Royce Micro-Cap TrustRMT -2.04%40 Return-on-Tangible-Equity is 14.36% as of Dec. 2025, which is 2% below its 10-year median of 14.66. GuruFocus rates RMT with a GF Score™ of 40/100 and a GF Value™ of $10.44 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,588 Asset Management companies, Royce Micro-Cap Trust ranks better than 70.84% 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. Royce Micro-Cap Trust's annualized net income for the quarter that ended in Dec. 2025 was $85.14 Mil. Royce Micro-Cap Trust's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $593.07 Mil. Therefore, Royce Micro-Cap Trust's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 14.36%.
The historical rank and industry rank for Royce Micro-Cap Trust's Return-on-Tangible-Equity or its related term are showing as below:
RMT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -19.46 Med: 14.66 Max: 19.89
Current: 15.02
During the past 9 years, Royce Micro-Cap Trust's highest Return-on-Tangible-Equity was 19.89%. The lowest was -19.46%. And the median was 14.66%.
RMT's Return-on-Tangible-Equity is ranked better than 70.84% of 1588
companies
in the Asset Management industry
Industry Median: 7.19
vs RMT: 15.02
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.
Royce Micro-Cap Trust Return-on-Tangible-Equity Related Terms
Royce Micro-Cap Trust Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Royce Micro-Cap 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.
RMT vs GGN, CGBD, GCMG: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Royce Micro-Cap 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.
Royce Micro-Cap Trust Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Royce Micro-Cap Trust's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Royce Micro-Cap 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 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 14.36% mean?
Royce Micro-Cap Trust (RMT) has a Return-on-Tangible-Equity of 14.36% 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 Royce Micro-Cap Trust and its competitors. This is near median its historical median of 14.66. According to the industry distribution chart, Royce Micro-Cap Trust ranks #463 out of 1588 companies in the Asset Management industry, placing it in the top 29.2%.
Is Royce Micro-Cap Trust's Return-on-Tangible-Equity too high?
Royce Micro-Cap Trust's current Return-on-Tangible-Equity of 14.36% is near median its 10-year median of 14.66. The Asset Management industry median Return-on-Tangible-Equity is 7.19. Royce Micro-Cap Trust's value of 14.36% is 99.7% above this industry median. Based on the distribution chart, Royce Micro-Cap Trust ranks #463 out of 1588 companies in the Asset Management industry, which is above the industry midpoint. Overall, Royce Micro-Cap Trust has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royce Micro-Cap Trust's Return-on-Tangible-Equity compare to GGN and CGBD?
According to the Asset Management industry distribution chart, Royce Micro-Cap Trust ranks #463 out of 1588 companies for Return-on-Tangible-Equity. This puts Royce Micro-Cap Trust in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.19. Royce Micro-Cap Trust's value of 14.36% is 99.7% above this benchmark. While the company's 10-year median is 14.66 vs. the industry median of 7.19, Royce Micro-Cap 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 an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.19, based on 1,588 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. Royce Micro-Cap Trust's current Return-on-Tangible-Equity of 14.36% is 99.7% 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 Royce Micro-Cap Trust and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royce Micro-Cap Trust's current Return-on-Tangible-Equity is 14.36%, which is near median its own 10-year median of 14.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royce Micro-Cap Trust stock overvalued right now?
Based on GuruFocus' analysis, Royce Micro-Cap Trust (RMT) is currently considered Significantly Overvalued. The stock's GF Value™ is $10.44, compared to a current price of $14.38 — trading 37.7% above its estimated fair value. The current Return-on-Tangible-Equity is 14.36%, which is near median its 10-year median of 14.66 and 99.7% above the Asset Management industry median of 7.19. Royce Micro-Cap Trust's overall GF Score™ is 40/100 with 8 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 Royce Micro-Cap Trust (RMT), the current Return-on-Tangible-Equity is 14.36% 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 Royce Micro-Cap Trust (RMT) Overvalued in 2026?
Based on GuruFocus' analysis, Royce Micro-Cap Trust stock appears to be overvalued.
The current stock price of $14.38 is trading 37.7% above its estimated GF Value™ of $10.44.
GuruFocus considers Royce Micro-Cap Trust to be Significantly Overvalued.
Key valuation signals for RMT:
Return-on-Tangible-Equity: 14.36% (near median its 10-year median of 14.66)
GF Value™: $10.44 vs. price of $14.38 (37.7% above fair value)
Industry Position: 99.7% above the Asset Management median (#463 of 1588)
No single metric tells the full story. See the RMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royce Micro-Cap Trust Inc is a diversified closed-end investment company. The company is engaged in investing in micro-cap securities. It invests in the consumer discretionary sector, including diversified consumer services, hotels, household durables, leisure products, and luxury goods. Consumer staples sector, including beverages, food, and staples retailing, food products, and personal products, Energy sector, including energy equipment and services, and oil, gas, and consumable fuels. The company also invests in other sectors, including healthcare, financials, industrials, IT, telecommunications, and materials.
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