Legato Merger IVLEGO.U 13 ROE % is 1.22% as of Feb. 2026. GuruFocus rates LEGO.U with a GF Score™ of 13/100. Among 493 Diversified Financial Services companies, Legato Merger IV ranks worse than 63.49% on this metric.
The historical rank and industry rank for Legato Merger IV's ROE % or its related term are showing as below:
LEGO.U'
s ROE % Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0.61
Current: 0.61
During the past 0 years, Legato Merger IV's highest ROE % was 0.61%. The lowest was 0.00%. And the median was 0.00%.
LEGO.U's ROE % is ranked worse than 63.49% of 493
companies
in the Diversified Financial Services industry
Industry Median: 1.65
vs LEGO.U: 0.61
Legato Merger IV (AMEX:LEGO.U) 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 (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 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.
Legato Merger IV ROE % Related Terms
Legato Merger IV ROE % Historical Data
* Premium members only.
The historical data trend for Legato Merger IV's ROE % can be seen below:
* 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.
Legato Merger IV ROE % Chart
Legato Merger IV Annual Data
Trend
ROE %
Legato Merger IV Quarterly Data
Sep25
Feb26
ROE %
0.00
1.22
LEGO.U vs AACO, ILLU, LPAA: ROE % Comparison
For the Shell Companies subindustry, Legato Merger IV'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.
Legato Merger IV ROE % vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Legato Merger IV's ROE % distribution charts can be found below:
* The bar in red indicates where Legato Merger IV'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 (Feb. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Legato Merger IV (LEGO.U) has a ROE % of 1.22% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Legato Merger IV and its competitors. According to the industry distribution chart, Legato Merger IV ranks #313 out of 493 companies in the Diversified Financial Services industry, placing it in the top 63.5%.
Is Legato Merger IV's ROE % too high?
Legato Merger IV's current ROE % is 1.22%. The Diversified Financial Services industry median ROE % is 1.65. Legato Merger IV's value of 1.22% is 26.1% below this industry median. Based on the distribution chart, Legato Merger IV ranks #313 out of 493 companies in the Diversified Financial Services industry, which is below the industry midpoint. Overall, Legato Merger IV has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Legato Merger IV's ROE % compare to AACO and ILLU?
According to the Diversified Financial Services industry distribution chart, Legato Merger IV ranks #313 out of 493 companies for ROE %. This places Legato Merger IV in the lower half of its industry. The industry median ROE % is 1.65. Legato Merger IV's value of 1.22% is 26.1% below 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 a Diversified Financial Services company?
The median ROE % among Diversified Financial Services companies is 1.65, based on 493 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. Legato Merger IV's current ROE % of 1.22% is 26.1% 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 Legato Merger IV and its competitors. For the Diversified Financial Services industry, the median ROE % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Legato Merger IV's current ROE % is 1.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Legato Merger IV stock overvalued right now?
Legato Merger IV (LEGO.U) has a current ROE % of 1.22%. The current ROE % is 1.22% and 26.1% below the Diversified Financial Services industry median of 1.65. Legato Merger IV's overall GF Score™ is 13/100. 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 Legato Merger IV (LEGO.U), the current ROE % is 1.22% as of Feb. 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.
Address777 Third Avenue, 37th Floor, New York, NY, USA, 10017
Legato Merger Corp IV is a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities.
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