Renta 4 BancoXMAD:R4 -0.78%74 Return-on-Tangible-Equity is 34.29% as of Mar. 2026, which is 56% above its 10-year median of 22.05. GuruFocus rates XMAD:R4 with a GF Score™ of 74/100 and a GF Value™ of €17.04 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,588 Asset Management companies, Renta 4 Banco ranks better than 88.35% 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. Renta 4 Banco's annualized net income for the quarter that ended in Mar. 2026 was €50.6 Mil. Renta 4 Banco's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €147.5 Mil. Therefore, Renta 4 Banco's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 34.29%.
The historical rank and industry rank for Renta 4 Banco's Return-on-Tangible-Equity or its related term are showing as below:
XMAD:R4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.77 Med: 22.05 Max: 33.11
Current: 33.11
During the past 13 years, Renta 4 Banco's highest Return-on-Tangible-Equity was 33.11%. The lowest was 17.77%. And the median was 22.05%.
XMAD:R4's Return-on-Tangible-Equity is ranked better than 88.35% of 1588
companies
in the Asset Management industry
Industry Median: 7.19
vs XMAD:R4: 33.11
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.
Renta 4 Banco Return-on-Tangible-Equity Related Terms
Renta 4 Banco Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Renta 4 Banco'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.
XMAD:R4 vs BLK, BX, KKR: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Renta 4 Banco'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.
Renta 4 Banco Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Renta 4 Banco's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Renta 4 Banco'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 34.29% mean?
Renta 4 Banco (XMAD:R4) has a Return-on-Tangible-Equity of 34.29% 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 Renta 4 Banco and its competitors. This is 56% above median its historical median of 22.05. Over the past decade, Renta 4 Banco's Return-on-Tangible-Equity has ranged from 17.77 to 33.11. According to the industry distribution chart, Renta 4 Banco ranks #185 out of 1588 companies in the Asset Management industry, placing it in the top 11.6%.
Is Renta 4 Banco's Return-on-Tangible-Equity too high?
Renta 4 Banco's current Return-on-Tangible-Equity of 34.29% is 56% above median its 10-year median of 22.05. Over the past 10 years, this metric has ranged from a low of 17.77 to a high of 33.11. The Asset Management industry median Return-on-Tangible-Equity is 7.19. Renta 4 Banco's value of 34.29% is 376.9% above this industry median. Based on the distribution chart, Renta 4 Banco ranks #185 out of 1588 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Renta 4 Banco has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Renta 4 Banco's Return-on-Tangible-Equity compare to BLK and BX?
According to the Asset Management industry distribution chart, Renta 4 Banco ranks #185 out of 1588 companies for Return-on-Tangible-Equity. This places Renta 4 Banco in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.19. Renta 4 Banco's value of 34.29% is 376.9% above this benchmark. Historically, Renta 4 Banco's own Return-on-Tangible-Equity has ranged from 17.77 to 33.11 over the past decade. While the company's 10-year median is 22.05 vs. the industry median of 7.19, Renta 4 Banco 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. Renta 4 Banco's current Return-on-Tangible-Equity of 34.29% is 376.9% 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 Renta 4 Banco 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. Renta 4 Banco's current Return-on-Tangible-Equity is 34.29%, which is 56% above median its own 10-year median of 22.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renta 4 Banco stock overvalued right now?
Based on GuruFocus' analysis, Renta 4 Banco (XMAD:R4) is currently considered Modestly Overvalued. The stock's GF Value™ is €17.04, compared to a current price of €19.00 — trading 11.5% above its estimated fair value. The current Return-on-Tangible-Equity is 34.29%, which is 56% above median its 10-year median of 22.05 and 376.9% above the Asset Management industry median of 7.19. Renta 4 Banco's overall GF Score™ is 74/100 with 2 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 Renta 4 Banco (XMAD:R4), the current Return-on-Tangible-Equity is 34.29% 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 Renta 4 Banco (XMAD:R4) Overvalued in 2026?
Based on GuruFocus' analysis, Renta 4 Banco stock appears to be overvalued.
The current stock price of €19.00 is trading 11.5% above its estimated GF Value™ of €17.04.
GuruFocus considers Renta 4 Banco to be Modestly Overvalued.
Key valuation signals for XMAD:R4:
Return-on-Tangible-Equity: 34.29% (56% above median its 10-year median of 22.05)
GF Value™: €17.04 vs. price of €19.00 (11.5% above fair value)
Industry Position: 376.9% above the Asset Management median (#185 of 1588)
No single metric tells the full story. See the XMAD:R4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renta 4 Banco SA is an asset management company providing wealth management, brokerage services, and corporate advisory services. It operates through a network of branches, agents, and subsidiaries spread widely across Spain and offers services to individuals and financial intermediaries, and small and medium-sized enterprises. Its activities include the provision of investment services, and the acquisition, holding, exploitation, administration, and disposal of all manner of transferable securities. It has three businesses as a reportable segment Intermediation, Portfolio, and asset management and advice, and Corporate Services.
74GF Score
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