ChallengerASX:CGF +0.77%59 Return-on-Tangible-Asset is 1.96% as of Dec. 2025, which is 81% above its 10-year median of 1.08. GuruFocus rates ASX:CGF with a GF Score™ of 59/100 and a GF Value™ of A$4.01 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 507 Insurance companies, Challenger ranks worse than 67.26% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Challenger's annualizedNet Income for the quarter that ended in Dec. 2025 was A$677 Mil. Challenger's average total tangible assets for the quarter that ended in Dec. 2025 was A$34,574 Mil. Therefore, Challenger's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 1.96%.
The historical rank and industry rank for Challenger's Return-on-Tangible-Asset or its related term are showing as below:
ASX:CGF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -1.5 Med: 1.08 Max: 2.07
Current: 1.34
During the past 13 years, Challenger's highest Return-on-Tangible-Asset was 2.07%. The lowest was -1.50%. And the median was 1.08%.
ASX:CGF's Return-on-Tangible-Asset is ranked worse than 67.26% of 507
companies
in the Insurance industry
Industry Median: 2.75
vs ASX:CGF: 1.34
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Challenger Return-on-Tangible-Asset Related Terms
Challenger Return-on-Tangible-Asset Historical Data
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The historical data trend for Challenger's Return-on-Tangible-Asset 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.
ASX:CGF vs AFL, MET, PRU: Return-on-Tangible-Asset Comparison
For the Insurance - Life subindustry, Challenger's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Challenger Return-on-Tangible-Asset vs Insurance Industry
For the Insurance industry and Financial Services sector, Challenger's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Challenger's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets 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.
What does a Return-on-Tangible-Asset of 1.96% mean?
Challenger (ASX:CGF) has a Return-on-Tangible-Asset of 1.96% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Challenger and its competitors. This is 81% above median its historical median of 1.08. According to the industry distribution chart, Challenger ranks #341 out of 507 companies in the Insurance industry, placing it in the top 67.3%.
Is Challenger's Return-on-Tangible-Asset too high?
Challenger's current Return-on-Tangible-Asset of 1.96% is 81% above median its 10-year median of 1.08. The Insurance industry median Return-on-Tangible-Asset is 2.75. Challenger's value of 1.96% is 28.7% below this industry median. Based on the distribution chart, Challenger ranks #341 out of 507 companies in the Insurance industry, which is below the industry midpoint. Overall, Challenger has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Challenger's Return-on-Tangible-Asset compare to AFL and MET?
According to the Insurance industry distribution chart, Challenger ranks #341 out of 507 companies for Return-on-Tangible-Asset. This places Challenger in the lower half of its industry. The industry median Return-on-Tangible-Asset is 2.75. Challenger's value of 1.96% is 28.7% below this benchmark. While the company's 10-year median is 1.08 vs. the industry median of 2.75, Challenger 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 Return-on-Tangible-Asset for an Insurance company?
The median Return-on-Tangible-Asset among Insurance companies is 2.75, based on 507 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Challenger's current Return-on-Tangible-Asset of 1.96% is 28.7% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Challenger and its competitors. For the Insurance industry, the median Return-on-Tangible-Asset is 2.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Challenger's current Return-on-Tangible-Asset is 1.96%, which is 81% above median its own 10-year median of 1.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Challenger stock overvalued right now?
Based on GuruFocus' analysis, Challenger (ASX:CGF) is currently considered Significantly Overvalued. The stock's GF Value™ is A$4.01, compared to a current price of A$10.50 — trading 161.8% above its estimated fair value. The current Return-on-Tangible-Asset is 1.96%, which is 81% above median its 10-year median of 1.08 and 28.7% below the Insurance industry median of 2.75. Challenger's overall GF Score™ is 59/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Challenger (ASX:CGF), the current Return-on-Tangible-Asset is 1.96% 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 Challenger (ASX:CGF) Overvalued in 2026?
Based on GuruFocus' analysis, Challenger stock appears to be overvalued.
The current stock price of A$10.50 is trading 161.8% above its estimated GF Value™ of A$4.01.
GuruFocus considers Challenger to be Significantly Overvalued.
Key valuation signals for ASX:CGF:
Return-on-Tangible-Asset: 1.96% (81% above median its 10-year median of 1.08)
GF Value™: A$4.01 vs. price of A$10.50 (161.8% above fair value)
Industry Position: 28.7% below the Insurance median (#341 of 507)
No single metric tells the full story. See the ASX:CGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Challenger's core business is selling annuity products in the Australian retirement market and, since November 2016, selling Australian dollar-denominated annuities into Japan's large retirement market. The firm's annuity products provide investors guaranteed regular payments over an agreed term for an upfront lump sum investment and is designed primarily to protect investors from the longevity risk of outliving their savings. Challenger also operates a funds management business, Fidante Partners, which has minority stakes in several boutique global investment managers, and Challenger Investment Management, which primarily manages investments supporting its annuities business.
59GF Score
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