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.
Mid-America Apartment Communities ROE % Related Terms
Mid-America Apartment Communities 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 REIT - Residential subindustry, Mid-America Apartment Communities'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.
Mid-America Apartment Communities ROE % vs REITs Industry
* 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.
Mid-America Apartment Communities (FRA:M2K) has a ROE % of 8.91% 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 Mid-America Apartment Communities and its competitors. This is 32% above median its historical median of 6.73. Over the past decade, Mid-America Apartment Communities' ROE % has ranged from 3.56 to 10.61. According to the industry distribution chart, Mid-America Apartment Communities ranks #421 out of 933 companies in the REITs industry, placing it in the top 45.1%.
Is Mid-America Apartment Communities' ROE % too high?
Mid-America Apartment Communities' current ROE % of 8.91% is 32% above median its 10-year median of 6.73. Over the past 10 years, this metric has ranged from a low of 3.56 to a high of 10.61. The REITs industry median ROE % is 6.15. Mid-America Apartment Communities' value of 8.91% is 44.9% above this industry median. Based on the distribution chart, Mid-America Apartment Communities ranks #421 out of 933 companies in the REITs industry, which is above the industry midpoint. Overall, Mid-America Apartment Communities has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mid-America Apartment Communities' ROE % compare to SUI and INVH?
According to the REITs industry distribution chart, Mid-America Apartment Communities ranks #421 out of 933 companies for ROE %. This puts Mid-America Apartment Communities in the upper half of its industry. The industry median ROE % is 6.15. Mid-America Apartment Communities' value of 8.91% is 44.9% above this benchmark. Historically, Mid-America Apartment Communities' own ROE % has ranged from 3.56 to 10.61 over the past decade. While the company's 10-year median is 6.73 vs. the industry median of 6.15, Mid-America Apartment Communities 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 ROE % for a REITs company?
The median ROE % among REITs companies is 6.15, based on 933 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. Mid-America Apartment Communities's current ROE % of 8.91% is 44.9% 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 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 Mid-America Apartment Communities and its competitors. For the REITs industry, the median ROE % is 6.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mid-America Apartment Communities's current ROE % is 8.91%, which is 32% above median its own 10-year median of 6.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mid-America Apartment Communities stock overvalued right now?
Based on GuruFocus' analysis, Mid-America Apartment Communities (FRA:M2K) is currently considered Fairly Valued. The stock's GF Value™ is €126.05, compared to a current price of €123.50 — trading 2% below its estimated fair value. The current ROE % is 8.91%, which is 32% above median its 10-year median of 6.73 and 44.9% above the REITs industry median of 6.15. Mid-America Apartment Communities' overall GF Score™ is 73/100 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 Mid-America Apartment Communities (FRA:M2K), the current ROE % is 8.91% 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 Mid-America Apartment Communities (FRA:M2K) Overvalued in 2026?
Based on GuruFocus' analysis, Mid-America Apartment Communities stock appears to be undervalued.
The current stock price of €123.50 is trading 2% below its estimated GF Value™ of €126.05.
GuruFocus considers Mid-America Apartment Communities to be Fairly Valued.
Key valuation signals for FRA:M2K:
ROE %: 8.91% (32% above median its 10-year median of 6.73)
GF Value™: €126.05 vs. price of €123.50 (2% below fair value)
Industry Position: 44.9% above the REITs median (#421 of 933)
No single metric tells the full story. See the FRA:M2K stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mid-America Apartment Communities Business Description
Mid-America Apartment Communities Inc is a multifamily-focused, self-administered and self-managed real estate investment trust. The company owns, operates, acquires and selectively develops apartment communities located in the Southeast, Southwest and Mid-Atlantic regions of the U.S. Its business objectives are to generate a sustainable, stable and increasing cash flow that will fund its dividends and distributions through all parts of the real estate investment cycle. It operates in two segments, Same Store and Non-Same Store and Other. The majority of the revenue is derived from Same Store segment.
73GF Score
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