Blackrock Floating Rate Stra FdFRA -0.46%37 ROE % is 6.09% as of Dec. 2025, which is 10% above its 10-year median of 5.52. GuruFocus rates FRA with a GF Score™ of 37/100 and a GF Value™ of $6.82 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,614 Asset Management companies, Blackrock Floating Rate Stra Fd ranks worse than 53.28% on this metric.
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 (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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.
Blackrock Floating Rate Stra Fd ROE % Related Terms
Blackrock Floating Rate Stra Fd 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, Blackrock Floating Rate Stra Fd'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.
Blackrock Floating Rate Stra Fd ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Blackrock Floating Rate Stra Fd's ROE % distribution charts can be found below:
* The bar in red indicates where Blackrock Floating Rate Stra Fd'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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Blackrock Floating Rate Stra Fd (FRA) has a ROE % of 6.09% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Blackrock Floating Rate Stra Fd and its competitors. This is 10% above median its historical median of 5.52. According to the industry distribution chart, Blackrock Floating Rate Stra Fd ranks #860 out of 1614 companies in the Asset Management industry, placing it in the top 53.3%.
Is Blackrock Floating Rate Stra Fd's ROE % too high?
Blackrock Floating Rate Stra Fd's current ROE % of 6.09% is 10% above median its 10-year median of 5.52. The Asset Management industry median ROE % is 6.36. Blackrock Floating Rate Stra Fd's value of 6.09% is 4.2% below this industry median. Based on the distribution chart, Blackrock Floating Rate Stra Fd ranks #860 out of 1614 companies in the Asset Management industry, which is below the industry midpoint. Overall, Blackrock Floating Rate Stra Fd has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Blackrock Floating Rate Stra Fd's ROE % compare to BGR and NCV?
According to the Asset Management industry distribution chart, Blackrock Floating Rate Stra Fd ranks #860 out of 1614 companies for ROE %. This places Blackrock Floating Rate Stra Fd in the lower half of its industry. The industry median ROE % is 6.36. Blackrock Floating Rate Stra Fd's value of 6.09% is 4.2% below this benchmark. While the company's 10-year median is 5.52 vs. the industry median of 6.36, Blackrock Floating Rate Stra Fd 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 6.36, based on 1,614 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. Blackrock Floating Rate Stra Fd's current ROE % of 6.09% is 4.2% 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 Blackrock Floating Rate Stra Fd and its competitors. For the Asset Management industry, the median ROE % is 6.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Blackrock Floating Rate Stra Fd's current ROE % is 6.09%, which is 10% above median its own 10-year median of 5.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Blackrock Floating Rate Stra Fd stock overvalued right now?
Based on GuruFocus' analysis, Blackrock Floating Rate Stra Fd (FRA) is currently considered Significantly Overvalued. The stock's GF Value™ is $6.82, compared to a current price of $10.84 — trading 58.9% above its estimated fair value. The current ROE % is 6.09%, which is 10% above median its 10-year median of 5.52 and 4.2% below the Asset Management industry median of 6.36. Blackrock Floating Rate Stra Fd's overall GF Score™ is 37/100 with 6 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 Blackrock Floating Rate Stra Fd (FRA), the current ROE % is 6.09% 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 Blackrock Floating Rate Stra Fd (FRA) Overvalued in 2026?
Based on GuruFocus' analysis, Blackrock Floating Rate Stra Fd stock appears to be overvalued.
The current stock price of $10.84 is trading 58.9% above its estimated GF Value™ of $6.82.
GuruFocus considers Blackrock Floating Rate Stra Fd to be Significantly Overvalued.
Key valuation signals for FRA:
ROE %: 6.09% (10% above median its 10-year median of 5.52)
GF Value™: $6.82 vs. price of $10.84 (58.9% above fair value)
Industry Position: 4.2% below the Asset Management median (#860 of 1614)
No single metric tells the full story. See the FRA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Blackrock Floating Rate Stra Fd Business Description
Blackrock Floating Rate Inc Stra Fd Inc is a closed-end management investment company. Its investment objective is to provide shareholders with high current income and such preservation of capital as is consistent with investment in a diversified, leveraged portfolio consisting of floating rate debt securities and instruments. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its managed assets in floating rate debt securities, including floating or variable rate debt securities that pay interest at rates that adjust whenever a specified interest rate changes and/or which reset on predetermined dates (such as the last day of a month or calendar quarter).
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