BlackRock Smaller TrustLSE:BRSC -0.91%36 ROE % is 15.89% as of Feb. 2026, which is 89% above its 10-year median of 8.42. GuruFocus rates LSE:BRSC with a GF Score™ of 36/100. The stock has 1 warning sign investors should review. Among 1,612 Asset Management companies, BlackRock Smaller Trust ranks better than 63.46% on this metric.
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. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
* 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, BlackRock Smaller Trust'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.
BlackRock Smaller Trust ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, BlackRock Smaller Trust's ROE % distribution charts can be found below:
* The bar in red indicates where BlackRock Smaller Trust'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. 2026) net income data.
ROE % is displayed in the 30-year financial page.
BlackRock Smaller Trust (LSE:BRSC) has a ROE % of 15.89% 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 BlackRock Smaller Trust and its competitors. This is 89% above median its historical median of 8.42. According to the industry distribution chart, BlackRock Smaller Trust ranks #589 out of 1612 companies in the Asset Management industry, placing it in the top 36.5%.
Is BlackRock Smaller Trust's ROE % too high?
BlackRock Smaller Trust's current ROE % of 15.89% is 89% above median its 10-year median of 8.42. The Asset Management industry median ROE % is 6.40. BlackRock Smaller Trust's value of 15.89% is 148.5% above this industry median. Based on the distribution chart, BlackRock Smaller Trust ranks #589 out of 1612 companies in the Asset Management industry, which is above the industry midpoint. Overall, BlackRock Smaller Trust has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does BlackRock Smaller Trust's ROE % compare to BLK and BX?
According to the Asset Management industry distribution chart, BlackRock Smaller Trust ranks #589 out of 1612 companies for ROE %. This puts BlackRock Smaller Trust in the upper half of its industry. The industry median ROE % is 6.40. BlackRock Smaller Trust's value of 15.89% is 148.5% above this benchmark. While the company's 10-year median is 8.42 vs. the industry median of 6.40, BlackRock Smaller Trust 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. BlackRock Smaller Trust's current ROE % of 15.89% is 148.5% 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 BlackRock Smaller Trust 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. BlackRock Smaller Trust's current ROE % is 15.89%, which is 89% above median its own 10-year median of 8.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BlackRock Smaller Trust stock overvalued right now?
BlackRock Smaller Trust (LSE:BRSC) has a current ROE % of 15.89%. The current ROE % is 15.89%, which is 89% above median its 10-year median of 8.42 and 148.5% above the Asset Management industry median of 6.40. BlackRock Smaller Trust's overall GF Score™ is 36/100 with 1 warning sign 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 BlackRock Smaller Trust (LSE:BRSC), the current ROE % is 15.89% 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.
BlackRock Smaller Companies Trust PLC is a UK-based investment trust company. Its investment objective is to achieve long-term capital growth for shareholders through investment mainly in smaller UK quoted companies. The company mainly attracts long-term private and institutional investors wanting to benefit from the growth prospects of smaller companies. It focuses on investing UK smaller companies which are listed on the London Stock Exchange or on the Alternative Investment Market. The firm has adopted a consistent investment process, focusing on good quality growth companies that are trading well and it also considers sector weightings and underlying themes and method of stock selection.
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