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Saratoga InvestmentSAR +0.59%45 Return-on-Tangible-Equity is -7.13% as of May. 2026. GuruFocus rates SAR with a GF Score™ of 45/100 and a GF Value™ of $13.55 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,588 Asset Management companies, Saratoga Investment ranks worse than 63.22% 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. Saratoga Investment's annualized net income for the quarter that ended in May. 2026 was $-27.61 Mil. Saratoga Investment's average shareholder tangible equity for the quarter that ended in May. 2026 was $387.31 Mil. Therefore, Saratoga Investment's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2026 was -7.13%.
The historical rank and industry rank for Saratoga Investment's Return-on-Tangible-Equity or its related term are showing as below:
SAR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.49 Med: 9.15 Max: 22.98
Current: 3.95
During the past 13 years, Saratoga Investment's highest Return-on-Tangible-Equity was 22.98%. The lowest was 2.49%. And the median was 9.15%.
SAR's Return-on-Tangible-Equity is ranked worse than 63.22% of 1588
companies
in the Asset Management industry
Industry Median: 7.43
vs SAR: 3.95
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.
Saratoga Investment Return-on-Tangible-Equity Related Terms
Saratoga Investment Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Saratoga Investment'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.
SAR vs RIV, TEI, EFR: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Saratoga Investment'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.
Saratoga Investment Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Saratoga Investment's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Saratoga Investment'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 (May. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -7.13% mean?
Saratoga Investment (SAR) has a Return-on-Tangible-Equity of -7.13% as of May. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Saratoga Investment and its competitors. Over the past decade, Saratoga Investment's Return-on-Tangible-Equity has ranged from 2.49 to 22.98. According to the industry distribution chart, Saratoga Investment ranks #1004 out of 1588 companies in the Asset Management industry, placing it in the top 63.2%.
Is Saratoga Investment's Return-on-Tangible-Equity too high?
Saratoga Investment's current Return-on-Tangible-Equity is -7.13%. Over the past 10 years, this metric has ranged from a low of 2.49 to a high of 22.98. Based on the distribution chart, Saratoga Investment ranks #1004 out of 1588 companies in the Asset Management industry, which is below the industry midpoint. Overall, Saratoga Investment has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Saratoga Investment's Return-on-Tangible-Equity compare to RIV and TEI?
According to the Asset Management industry distribution chart, Saratoga Investment ranks #1004 out of 1588 companies for Return-on-Tangible-Equity. This places Saratoga Investment in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.43. Historically, Saratoga Investment's own Return-on-Tangible-Equity has ranged from 2.49 to 22.98 over the past decade. 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 7.43, 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. 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 Saratoga Investment and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saratoga Investment's current Return-on-Tangible-Equity is -7.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saratoga Investment stock overvalued right now?
Based on GuruFocus' analysis, Saratoga Investment (SAR) is currently considered Significantly Overvalued. The stock's GF Value™ is $13.55, compared to a current price of $18.80 — trading 38.7% above its estimated fair value. The current Return-on-Tangible-Equity is -7.13%. Saratoga Investment's overall GF Score™ is 45/100 with 7 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 Saratoga Investment (SAR), the current Return-on-Tangible-Equity is -7.13% as of May. 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 Saratoga Investment (SAR) Overvalued in 2026?
Based on GuruFocus' analysis, Saratoga Investment stock appears to be overvalued.
The current stock price of $18.80 is trading 38.7% above its estimated GF Value™ of $13.55.
GuruFocus considers Saratoga Investment to be Significantly Overvalued.
Key valuation signals for SAR:
Return-on-Tangible-Equity: -7.13%
GF Value™: $13.55 vs. price of $18.80 (38.7% above fair value)
No single metric tells the full story. See the SAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saratoga Investment Corp is a specialty finance company that provides customized financing solutions to U.S. middle-market businesses. The company invests in senior and unitranche leveraged loans and mezzanine debt, and, to a lesser extent, equity to provide financing for change of ownership transactions, strategic acquisitions, recapitalizations and growth initiatives in partnership with business owners, management teams and financial sponsors. Its objective is to create attractive risk-adjusted returns by generating current income and long-term capital appreciation from its debt and equity investments.
45GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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