FTHY's ROE % is ranked better than 51.36% of 1612
companies
in the Asset Management industry
Industry Median: 6.395
vs FTHY: 6.75
FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND (NYSE:FTHY) 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 (Nov. 2025) net income data. The Revenue data used here is two times the semi-annual (Nov. 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.
FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND ROE % Related Terms
FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM 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.
FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND ROE % Chart
FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND Annual Data
Trend
May21
May22
May23
May24
May25
ROE %
10.45
-10.27
-3.24
9.57
8.15
FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND Semi-Annual Data
* 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 HIGH YIELD OPPORTUNITIES 2027 TERM FUND ROE % vs Asset Management 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 two times the semi-annual (Nov. 2025) net income data.
ROE % is displayed in the 30-year financial page.
FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND (FTHY) has a ROE % of 8.96% as of Nov. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND and its competitors. This is 10% above median its historical median of 8.15. According to the industry distribution chart, FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND ranks #784 out of 1612 companies in the Asset Management industry, placing it in the top 48.6%.
Is FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND's ROE % too high?
FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND's current ROE % of 8.96% is 10% above median its 10-year median of 8.15. The Asset Management industry median ROE % is 6.40. FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND's value of 8.96% is 40.1% above this industry median. Based on the distribution chart, FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND ranks #784 out of 1612 companies in the Asset Management industry, which is above the industry midpoint. Overall, FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND's ROE % compare to BGB and ETO?
According to the Asset Management industry distribution chart, FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND ranks #784 out of 1612 companies for ROE %. This puts FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND in the upper half of its industry. The industry median ROE % is 6.40. FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND's value of 8.96% is 40.1% above this benchmark. While the company's 10-year median is 8.15 vs. the industry median of 6.40, FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND 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 an Asset Management company?
The median ROE % among Asset Management companies is 6.40, based on 1,612 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 HIGH YIELD OPPORTUNITIES 2027 TERM FUND's current ROE % of 8.96% is 40.1% 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 FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND and its competitors. For the Asset Management industry, the median ROE % is 6.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND's current ROE % is 8.96%, which is 10% above median its own 10-year median of 8.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND stock overvalued right now?
FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND (FTHY) has a current ROE % of 8.96%. The current ROE % is 8.96%, which is 10% above median its 10-year median of 8.15 and 40.1% above the Asset Management industry median of 6.40. FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND's overall GF Score™ is 26/100 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 FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND (FTHY), the current ROE % is 8.96% as of Nov. 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.
FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND Business Description
FIRST TRUST HIGH YIELD OPPORTUNITIES 2027 TERM FUND is a diversified, closed-end management investment company. The investment objective of the fund is to provide current income. The fund invests a majority of its managed assets in high-yield debt securities of any maturity that are rated below investment grade at the time of purchase or unrated securities. Its investment portfolio comprises corporate bonds and notes, senior floating-rate loan interests, foreign corporate bonds and notes, money market funds, and other instruments across various industries.
26GF Score
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