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The historical rank and industry rank for Invesco Mortgage Capital's ROE % or its related term are showing as below:
FRA:7M20'
s ROE % Range Over the Past 10 Years
Min: -77.89 Med: 2.96 Max: 14.31
Current: 7.89
During the past 13 years, Invesco Mortgage Capital's highest ROE % was 14.31%. The lowest was -77.89%. And the median was 2.96%.
FRA:7M20's ROE % is ranked better than 63.32% of 935
companies
in the REITs industry
Industry Median: 6.14
vs FRA:7M20: 7.89
Invesco Mortgage Capital (FRA:7M20) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 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.
* 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 REIT - Mortgage subindustry, Invesco Mortgage Capital'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.
Invesco Mortgage Capital ROE % vs REITs Industry
For the REITs industry and Real Estate sector, Invesco Mortgage Capital's ROE % distribution charts can be found below:
* The bar in red indicates where Invesco Mortgage Capital'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 four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Invesco Mortgage Capital (FRA:7M20) has a ROE % of -9.57% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Invesco Mortgage Capital and its competitors. According to the industry distribution chart, Invesco Mortgage Capital ranks #343 out of 935 companies in the REITs industry, placing it in the top 36.7%.
Is Invesco Mortgage Capital's ROE % too high?
Invesco Mortgage Capital's current ROE % is -9.57%. Based on the distribution chart, Invesco Mortgage Capital ranks #343 out of 935 companies in the REITs industry, which is above the industry midpoint. Overall, Invesco Mortgage Capital has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Invesco Mortgage Capital's ROE % compare to BRSP and ADAM?
According to the REITs industry distribution chart, Invesco Mortgage Capital ranks #343 out of 935 companies for ROE %. This puts Invesco Mortgage Capital in the upper half of its industry. The industry median ROE % is 6.14. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a REITs company?
The median ROE % among REITs companies is 6.14, based on 935 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. 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 Invesco Mortgage Capital and its competitors. For the REITs industry, the median ROE % is 6.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Invesco Mortgage Capital's current ROE % is -9.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Invesco Mortgage Capital stock overvalued right now?
Invesco Mortgage Capital (FRA:7M20) has a current ROE % of -9.57%. The current ROE % is -9.57%. Invesco Mortgage Capital's overall GF Score™ is 39/100 with 2 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 Invesco Mortgage Capital (FRA:7M20), the current ROE % is -9.57% 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.
Invesco Mortgage Capital Inc is a REIT that invests, finances, and manages residential and commercial mortgage-backed securities and mortgage loans. The company's portfolio consists of residential mortgage-backed securities (RMBS) that are guaranteed by a U.S. government agency such as the Government National Mortgage Association, or a federally chartered corporation such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation; Commercial mortgage-backed securities (CMBS) that are not guaranteed by a U.S. government agency or a federally chartered corporation; RMBS that are not guaranteed by a U.S. government agency or a federally chartered corporation; and other real estate-related financing arrangements.
39GF Score
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