Testa Residencial SocimiXMAD:YTST 63 Return-on-Tangible-Equity is 16.54% as of Dec. 2025, which is 295% above its 10-year median of 4.19. GuruFocus rates XMAD:YTST with a GF Score™ of 63/100 and a GF Value™ of €3.67 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 935 REITs companies, Testa Residencial Socimi ranks better than 60.75% 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. Testa Residencial Socimi's annualized net income for the quarter that ended in Dec. 2025 was €171.0 Mil. Testa Residencial Socimi's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €1,034.1 Mil. Therefore, Testa Residencial Socimi's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 16.54%.
The historical rank and industry rank for Testa Residencial Socimi's Return-on-Tangible-Equity or its related term are showing as below:
XMAD:YTST'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -9.65 Med: 4.19 Max: 10.24
Current: 7.66
During the past 7 years, Testa Residencial Socimi's highest Return-on-Tangible-Equity was 10.24%. The lowest was -9.65%. And the median was 4.19%.
XMAD:YTST's Return-on-Tangible-Equity is ranked better than 60.75% of 935
companies
in the REITs industry
Industry Median: 6.23
vs XMAD:YTST: 7.66
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.
Testa Residencial Socimi Return-on-Tangible-Equity Related Terms
Testa Residencial Socimi Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Testa Residencial Socimi'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:YTST vs VICI, WPC: Return-on-Tangible-Equity Comparison
For the REIT - Diversified subindustry, Testa Residencial Socimi'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.
Testa Residencial Socimi Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Testa Residencial Socimi's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Testa Residencial Socimi'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 16.54% mean?
Testa Residencial Socimi (XMAD:YTST) has a Return-on-Tangible-Equity of 16.54% 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 Testa Residencial Socimi and its competitors. This is 295% above median its historical median of 4.19. According to the industry distribution chart, Testa Residencial Socimi ranks #367 out of 935 companies in the REITs industry, placing it in the top 39.3%.
Is Testa Residencial Socimi's Return-on-Tangible-Equity too high?
Testa Residencial Socimi's current Return-on-Tangible-Equity of 16.54% is 295% above median its 10-year median of 4.19. The REITs industry median Return-on-Tangible-Equity is 6.23. Testa Residencial Socimi's value of 16.54% is 165.5% above this industry median. Based on the distribution chart, Testa Residencial Socimi ranks #367 out of 935 companies in the REITs industry, which is above the industry midpoint. Overall, Testa Residencial Socimi has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Testa Residencial Socimi's Return-on-Tangible-Equity compare to VICI and WPC?
According to the REITs industry distribution chart, Testa Residencial Socimi ranks #367 out of 935 companies for Return-on-Tangible-Equity. This puts Testa Residencial Socimi in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.23. Testa Residencial Socimi's value of 16.54% is 165.5% above this benchmark. While the company's 10-year median is 4.19 vs. the industry median of 6.23, Testa Residencial Socimi 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 6.23, based on 935 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. Testa Residencial Socimi's current Return-on-Tangible-Equity of 16.54% is 165.5% 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 Testa Residencial Socimi and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Testa Residencial Socimi's current Return-on-Tangible-Equity is 16.54%, which is 295% above median its own 10-year median of 4.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Testa Residencial Socimi stock overvalued right now?
Based on GuruFocus' analysis, Testa Residencial Socimi (XMAD:YTST) is currently considered Modestly Undervalued. The stock's GF Value™ is €3.67, compared to a current price of €3.24 — trading 11.7% below its estimated fair value. The current Return-on-Tangible-Equity is 16.54%, which is 295% above median its 10-year median of 4.19 and 165.5% above the REITs industry median of 6.23. Testa Residencial Socimi's overall GF Score™ is 63/100 with 6 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 Testa Residencial Socimi (XMAD:YTST), the current Return-on-Tangible-Equity is 16.54% 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 Testa Residencial Socimi (XMAD:YTST) Overvalued in 2026?
Based on GuruFocus' analysis, Testa Residencial Socimi stock appears to be undervalued.
The current stock price of €3.24 is trading 11.7% below its estimated GF Value™ of €3.67.
GuruFocus considers Testa Residencial Socimi to be Modestly Undervalued.
Key valuation signals for XMAD:YTST:
Return-on-Tangible-Equity: 16.54% (295% above median its 10-year median of 4.19)
GF Value™: €3.67 vs. price of €3.24 (11.7% below fair value)
Industry Position: 165.5% above the REITs median (#367 of 935)
No single metric tells the full story. See the XMAD:YTST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Testa Residencial Socimi SA is a real estate investment trust. The company is a property company in the rental housing sector. Its portfolio includes residential and retail properties.
63GF Score
Get the complete analysis for XMAD:YTST
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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