The historical rank and industry rank for Trustco Group Holdings's ROE % or its related term are showing as below:
JSE:TTO's ROE % is not ranked *
in the Asset Management industry.
Industry Median: 6.395 * Ranked among companies with meaningful ROE % only.
Trustco Group Holdings (JSE:TTO) 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 (Feb. 2024) net income data. The Revenue data used here is two times the semi-annual (Feb. 2024) 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 Asset Management subindustry, Trustco Group Holdings'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.
Trustco Group Holdings ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Trustco Group Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Trustco Group Holdings'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 (Feb. 2024) net income data.
ROE % is displayed in the 30-year financial page.
Trustco Group Holdings (JSE:TTO) has a ROE % of 18.21% as of Feb. 2024. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Trustco Group Holdings and its competitors.
Is Trustco Group Holdings' ROE % too high?
Trustco Group Holdings' current ROE % is 18.21%. The Asset Management industry median ROE % is 6.40. Trustco Group Holdings' value of 18.21% is 184.8% above this industry median. Overall, Trustco Group Holdings has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Trustco Group Holdings' ROE % compare to BLK and BX?
Trustco Group Holdings' ROE % of 18.21% can be compared against companies in the Asset Management industry. The industry median ROE % is 6.40. Trustco Group Holdings' value of 18.21% is 184.8% above this benchmark. 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. Trustco Group Holdings's current ROE % of 18.21% is 184.8% 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 Trustco Group Holdings 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. Trustco Group Holdings's current ROE % is 18.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trustco Group Holdings stock overvalued right now?
Trustco Group Holdings (JSE:TTO) has a current ROE % of 18.21%. The current ROE % is 18.21% and 184.8% above the Asset Management industry median of 6.40. Trustco Group Holdings' overall GF Score™ is 11/100. 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 Trustco Group Holdings (JSE:TTO), the current ROE % is 18.21% as of Feb. 2024. 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.
Trustco Group Holdings Ltd engages in the provision of financial services. The company's operating segment includes Financial Services and Resources. The Financial Services portfolio earns income from insurance premiums, property sales, rental income, investment property activities, banking and finance activities, interest, fees, and commissions from customers, and tuition income. The Resources portfolio conducts mining operations in Namibia and Sierra Leone. The company earns maximum revenue through Micro-Finance.
11GF Score
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