The European Smaller TrustLSE:ESCT -0.64%40 ROE % is 13.61% as of Dec. 2025, which is 15% above its 10-year median of 11.79. GuruFocus rates LSE:ESCT with a GF Score™ of 40/100. The stock has 4 warning signs investors should review. Among 1,615 Asset Management companies, The European Smaller Trust ranks better than 89.78% on this metric.
The historical rank and industry rank for The European Smaller Trust's ROE % or its related term are showing as below:
LSE:ESCT'
s ROE % Range Over the Past 10 Years
Min: -23.4 Med: 11.79 Max: 48.17
Current: 28.4
During the past 13 years, The European Smaller Trust's highest ROE % was 48.17%. The lowest was -23.40%. And the median was 11.79%.
LSE:ESCT's ROE % is ranked better than 89.78% of 1615
companies
in the Asset Management industry
Industry Median: 6.35
vs LSE:ESCT: 28.40
The European Smaller Trust (LSE:ESCT) 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 (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 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.
* 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, The European 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.
The European Smaller Trust ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, The European Smaller Trust's ROE % distribution charts can be found below:
* The bar in red indicates where The European 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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
The European Smaller Trust (LSE:ESCT) has a ROE % of 13.61% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The European Smaller Trust and its competitors. This is 15% above median its historical median of 11.79. According to the industry distribution chart, The European Smaller Trust ranks #165 out of 1615 companies in the Asset Management industry, placing it in the top 10.2%.
Is The European Smaller Trust's ROE % too high?
The European Smaller Trust's current ROE % of 13.61% is 15% above median its 10-year median of 11.79. The Asset Management industry median ROE % is 6.35. The European Smaller Trust's value of 13.61% is 114.3% above this industry median. Based on the distribution chart, The European Smaller Trust ranks #165 out of 1615 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, The European Smaller Trust has a GF Score™ of 40/100, reflecting its overall financial health beyond just this single metric.
How does The European Smaller Trust's ROE % compare to BLK and BX?
According to the Asset Management industry distribution chart, The European Smaller Trust ranks #165 out of 1615 companies for ROE %. This places The European Smaller Trust in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 6.35. The European Smaller Trust's value of 13.61% is 114.3% above this benchmark. While the company's 10-year median is 11.79 vs. the industry median of 6.35, The European 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 6.35, based on 1,615 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. The European Smaller Trust's current ROE % of 13.61% is 114.3% 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 The European Smaller Trust and its competitors. For the Asset Management industry, the median ROE % is 6.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The European Smaller Trust's current ROE % is 13.61%, which is 15% above median its own 10-year median of 11.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The European Smaller Trust stock overvalued right now?
The European Smaller Trust (LSE:ESCT) has a current ROE % of 13.61%. The current ROE % is 13.61%, which is 15% above median its 10-year median of 11.79 and 114.3% above the Asset Management industry median of 6.35. The European Smaller Trust's overall GF Score™ is 40/100 with 4 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 The European Smaller Trust (LSE:ESCT), the current ROE % is 13.61% as of Dec. 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.
The European Smaller Companies Trust PLC is a United Kingdom-based trust focused on capital growth through equities in smaller and medium-sized European companies. It focuses on equities from smaller and medium-sized companies quoted, domiciled, listed, or operating across Europe, excluding the UK. Its portfolio includes industrial goods, technology, financials, business providers, basic materials, consumer goods, retail providers and natural resource sectors.
40GF Score
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