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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
First Trust Mortgageome FundFMY -3.46%54 ROE % is 2.48% as of Apr. 2026, which is 7% below its 10-year median of 2.66. GuruFocus rates FMY with a GF Score™ of 54/100 and a GF Value™ of $11.71 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,598 Asset Management companies, First Trust Mortgageome Fund ranks worse than 54.88% on this metric.
First Trust Mortgageome Fund (NYSE:FMY) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Apr. 2026) net income data. The Revenue data used here is two times the semi-annual (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
First Trust Mortgageome Fund ROE % Related Terms
First Trust Mortgageome Fund ROE % Historical Data
* 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.
For the Asset Management subindustry, First Trust Mortgageome Fund's ROE %, along with its competitors' market caps and ROE % 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.
First Trust Mortgageome Fund ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, First Trust Mortgageome Fund's ROE % distribution charts can be found below:
* The bar in red indicates where First Trust Mortgageome Fund's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Apr. 2026) net income data.
ROE % is displayed in the 30-year financial page.
First Trust Mortgageome Fund (FMY) has a ROE % of 2.48% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on First Trust Mortgageome Fund and its competitors. This is near median its historical median of 2.66. According to the industry distribution chart, First Trust Mortgageome Fund ranks #877 out of 1598 companies in the Asset Management industry, placing it in the top 54.9%.
Is First Trust Mortgageome Fund's ROE % too high?
First Trust Mortgageome Fund's current ROE % of 2.48% is near median its 10-year median of 2.66. The Asset Management industry median ROE % is 6.76. First Trust Mortgageome Fund's value of 2.48% is 63.3% below this industry median. Based on the distribution chart, First Trust Mortgageome Fund ranks #877 out of 1598 companies in the Asset Management industry, which is below the industry midpoint. Overall, First Trust Mortgageome Fund has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First Trust Mortgageome Fund's ROE % compare to OFS and SDEV?
According to the Asset Management industry distribution chart, First Trust Mortgageome Fund ranks #877 out of 1598 companies for ROE %. This places First Trust Mortgageome Fund in the lower half of its industry. The industry median ROE % is 6.76. First Trust Mortgageome Fund's value of 2.48% is 63.3% below this benchmark. While the company's 10-year median is 2.66 vs. the industry median of 6.76, First Trust Mortgageome Fund has consistently been below 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 ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.76, based on 1,598 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Trust Mortgageome Fund's current ROE % of 2.48% is 63.3% below 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on First Trust Mortgageome Fund and its competitors. For the Asset Management industry, the median ROE % is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Trust Mortgageome Fund's current ROE % is 2.48%, which is near median its own 10-year median of 2.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Trust Mortgageome Fund stock overvalued right now?
Based on GuruFocus' analysis, First Trust Mortgageome Fund (FMY) is currently considered Fairly Valued. The stock's GF Value™ is $11.71, compared to a current price of $11.43 — trading 2.4% below its estimated fair value. The current ROE % is 2.48%, which is near median its 10-year median of 2.66 and 63.3% below the Asset Management industry median of 6.76. First Trust Mortgageome Fund's overall GF Score™ is 54/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For First Trust Mortgageome Fund (FMY), the current ROE % is 2.48% as of Apr. 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 First Trust Mortgageome Fund (FMY) Overvalued in 2026?
Based on GuruFocus' analysis, First Trust Mortgageome Fund stock appears to be undervalued.
The current stock price of $11.43 is trading 2.4% below its estimated GF Value™ of $11.71.
GuruFocus considers First Trust Mortgageome Fund to be Fairly Valued.
Key valuation signals for FMY:
ROE %: 2.48% (near median its 10-year median of 2.66)
GF Value™: $11.71 vs. price of $11.43 (2.4% below fair value)
Industry Position: 63.3% below the Asset Management median (#877 of 1598)
No single metric tells the full story. See the FMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Trust Mortgage Income Fund is a United States-based diversified, closed-end management investment company. The fund's primary investment objective is to seek a high level of current income. Its secondary investment objective is to preserve capital. The fund pursues its objectives by investing predominantly in mortgage-backed securities representing part ownership in a pool of either residential or commercial mortgage loans that, in the opinion of the Fund's investment advisor, offer an attractive combination of credit quality, yield, and maturity.
54GF Score
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