Scottish Mortgage Investment TrustLSE:SMT +0.61%34 ROE % is 6.37% as of Mar. 2026, which is 50% below its 10-year median of 12.70. GuruFocus rates LSE:SMT with a GF Score™ of 34/100. The stock has 4 warning signs investors should review. Among 1,609 Asset Management companies, Scottish Mortgage Investment Trust ranks better than 85.89% 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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 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.
Scottish Mortgage Investment Trust ROE % Related Terms
Scottish Mortgage Investment Trust 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.
For the Asset Management subindustry, Scottish Mortgage Investment 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.
Scottish Mortgage Investment Trust ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Scottish Mortgage Investment Trust's ROE % distribution charts can be found below:
* The bar in red indicates where Scottish Mortgage Investment 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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Scottish Mortgage Investment Trust (LSE:SMT) has a ROE % of 6.37% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Scottish Mortgage Investment Trust and its competitors. This is 50% below median its historical median of 12.70. According to the industry distribution chart, Scottish Mortgage Investment Trust ranks #227 out of 1609 companies in the Asset Management industry, placing it in the top 14.1%.
Is Scottish Mortgage Investment Trust's ROE % too high?
Scottish Mortgage Investment Trust's current ROE % of 6.37% is 50% below median its 10-year median of 12.70. The Asset Management industry median ROE % is 6.52. Scottish Mortgage Investment Trust's value of 6.37% is 2.3% below this industry median. Based on the distribution chart, Scottish Mortgage Investment Trust ranks #227 out of 1609 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Scottish Mortgage Investment Trust has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Scottish Mortgage Investment Trust's ROE % compare to BLK and BX?
According to the Asset Management industry distribution chart, Scottish Mortgage Investment Trust ranks #227 out of 1609 companies for ROE %. This places Scottish Mortgage Investment Trust in the top 14% of its industry — outperforming the majority of peers. The industry median ROE % is 6.52. Scottish Mortgage Investment Trust's value of 6.37% is 2.3% below this benchmark. While the company's 10-year median is 12.70 vs. the industry median of 6.52, Scottish Mortgage Investment Trust has consistently been below 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 6.52, based on 1,609 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. Scottish Mortgage Investment Trust's current ROE % of 6.37% is 2.3% 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 Scottish Mortgage Investment Trust and its competitors. For the Asset Management industry, the median ROE % is 6.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Scottish Mortgage Investment Trust's current ROE % is 6.37%, which is 50% below median its own 10-year median of 12.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Scottish Mortgage Investment Trust stock overvalued right now?
Scottish Mortgage Investment Trust (LSE:SMT) has a current ROE % of 6.37%. The current ROE % is 6.37%, which is 50% below median its 10-year median of 12.70 and 2.3% below the Asset Management industry median of 6.52. Scottish Mortgage Investment Trust's overall GF Score™ is 34/100 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 Scottish Mortgage Investment Trust (LSE:SMT), the current ROE % is 6.37% as of Mar. 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.
Scottish Mortgage Investment Trust Business Description
Scottish Mortgage Investment Trust PLC is an investment trust company. The company's objective is to maximize total return from a portfolio of long-term investments chosen on a global basis enabling the company to provide capital and dividend growth. The company focuses on investment in quoted securities irrespective of any geographical, industry, and sector exposure. The portfolio also invests in fixed-income securities, convertible securities, funds, unquoted entities, and other assets.
34GF Score
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