Royce Micro-Cap TrustRMT +0.57%40 ROE % is 14.36% as of Dec. 2025, which is 2% below its 10-year median of 14.66. GuruFocus rates RMT with a GF Score™ of 40/100 and a GF Value™ of $10.44 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,614 Asset Management companies, Royce Micro-Cap Trust ranks better than 75.59% 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 (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, Royce Micro-Cap 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.
Royce Micro-Cap Trust ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Royce Micro-Cap Trust's ROE % distribution charts can be found below:
* The bar in red indicates where Royce Micro-Cap 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.
Royce Micro-Cap Trust (RMT) has a ROE % of 14.36% 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 Royce Micro-Cap Trust and its competitors. This is near median its historical median of 14.66. According to the industry distribution chart, Royce Micro-Cap Trust ranks #394 out of 1614 companies in the Asset Management industry, placing it in the top 24.4%.
Is Royce Micro-Cap Trust's ROE % too high?
Royce Micro-Cap Trust's current ROE % of 14.36% is near median its 10-year median of 14.66. The Asset Management industry median ROE % is 6.36. Royce Micro-Cap Trust's value of 14.36% is 125.8% above this industry median. Based on the distribution chart, Royce Micro-Cap Trust ranks #394 out of 1614 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Royce Micro-Cap Trust has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royce Micro-Cap Trust's ROE % compare to CGBD and NIE?
According to the Asset Management industry distribution chart, Royce Micro-Cap Trust ranks #394 out of 1614 companies for ROE %. This places Royce Micro-Cap Trust in the top 24% of its industry — outperforming the majority of peers. The industry median ROE % is 6.36. Royce Micro-Cap Trust's value of 14.36% is 125.8% above this benchmark. While the company's 10-year median is 14.66 vs. the industry median of 6.36, Royce Micro-Cap 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 6.36, based on 1,614 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. Royce Micro-Cap Trust's current ROE % of 14.36% is 125.8% 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 Royce Micro-Cap Trust and its competitors. For the Asset Management industry, the median ROE % is 6.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royce Micro-Cap Trust's current ROE % is 14.36%, which is near median its own 10-year median of 14.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royce Micro-Cap Trust stock overvalued right now?
Based on GuruFocus' analysis, Royce Micro-Cap Trust (RMT) is currently considered Significantly Overvalued. The stock's GF Value™ is $10.44, compared to a current price of $14.05 — trading 34.6% above its estimated fair value. The current ROE % is 14.36%, which is near median its 10-year median of 14.66 and 125.8% above the Asset Management industry median of 6.36. Royce Micro-Cap Trust's overall GF Score™ is 40/100 with 8 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 Royce Micro-Cap Trust (RMT), the current ROE % is 14.36% 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.
Is Royce Micro-Cap Trust (RMT) Overvalued in 2026?
Based on GuruFocus' analysis, Royce Micro-Cap Trust stock appears to be overvalued.
The current stock price of $14.05 is trading 34.6% above its estimated GF Value™ of $10.44.
GuruFocus considers Royce Micro-Cap Trust to be Significantly Overvalued.
Key valuation signals for RMT:
ROE %: 14.36% (near median its 10-year median of 14.66)
GF Value™: $10.44 vs. price of $14.05 (34.6% above fair value)
Industry Position: 125.8% above the Asset Management median (#394 of 1614)
No single metric tells the full story. See the RMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royce Micro-Cap Trust Inc is a diversified closed-end investment company. The company is engaged in investing in micro-cap securities. It invests in the consumer discretionary sector, including diversified consumer services, hotels, household durables, leisure products, and luxury goods. Consumer staples sector, including beverages, food, and staples retailing, food products, and personal products, Energy sector, including energy equipment and services, and oil, gas, and consumable fuels. The company also invests in other sectors, including healthcare, financials, industrials, IT, telecommunications, and materials.
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