Coles GroupFRA:2OF +1.47%73 Return-on-Tangible-Asset is 5.66% as of Dec. 2025, which is 14% below its 10-year median of 6.56. GuruFocus rates FRA:2OF with a GF Score™ of 73/100 and a GF Value™ of €12.12 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 312 Retail - Defensive companies, Coles Group ranks better than 64.74% 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. Coles Group's annualizedNet Income for the quarter that ended in Dec. 2025 was €580 Mil. Coles Group's average total tangible assets for the quarter that ended in Dec. 2025 was €10,249 Mil. Therefore, Coles Group's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 5.66%.
The historical rank and industry rank for Coles Group's Return-on-Tangible-Asset or its related term are showing as below:
FRA:2OF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 5.62 Med: 6.56 Max: 20.29
Current: 5.62
During the past 8 years, Coles Group's highest Return-on-Tangible-Asset was 20.29%. The lowest was 5.62%. And the median was 6.56%.
FRA:2OF's Return-on-Tangible-Asset is ranked better than 64.74% of 312
companies
in the Retail - Defensive industry
Industry Median: 3.88
vs FRA:2OF: 5.62
Coles Group (FRA:2OF) Return-on-Tangible-Asset Explanation
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.
Coles Group Return-on-Tangible-Asset Related Terms
Coles Group Return-on-Tangible-Asset Historical Data
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The historical data trend for Coles Group'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.
FRA:2OF vs KR, SFM, ACI: Return-on-Tangible-Asset Comparison
For the Grocery Stores subindustry, Coles Group'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.
Coles Group Return-on-Tangible-Asset vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Coles Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Coles Group'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 5.66% mean?
Coles Group (FRA:2OF) has a Return-on-Tangible-Asset of 5.66% 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 Coles Group and its competitors. This is 14% below median its historical median of 6.56. Over the past decade, Coles Group's Return-on-Tangible-Asset has ranged from 5.62 to 20.29. According to the industry distribution chart, Coles Group ranks #110 out of 312 companies in the Retail - Defensive industry, placing it in the top 35.3%.
Is Coles Group's Return-on-Tangible-Asset too high?
Coles Group's current Return-on-Tangible-Asset of 5.66% is 14% below median its 10-year median of 6.56. Over the past 10 years, this metric has ranged from a low of 5.62 to a high of 20.29. The Retail - Defensive industry median Return-on-Tangible-Asset is 3.88. Coles Group's value of 5.66% is 45.9% above this industry median. Based on the distribution chart, Coles Group ranks #110 out of 312 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Coles Group has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Coles Group's Return-on-Tangible-Asset compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Coles Group ranks #110 out of 312 companies for Return-on-Tangible-Asset. This puts Coles Group in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.88. Coles Group's value of 5.66% is 45.9% above this benchmark. Historically, Coles Group's own Return-on-Tangible-Asset has ranged from 5.62 to 20.29 over the past decade. While the company's 10-year median is 6.56 vs. the industry median of 3.88, Coles Group 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 Return-on-Tangible-Asset for a Retail - Defensive company?
The median Return-on-Tangible-Asset among Retail - Defensive companies is 3.88, based on 312 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. Coles Group's current Return-on-Tangible-Asset of 5.66% is 45.9% 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 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 Coles Group and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Asset is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coles Group's current Return-on-Tangible-Asset is 5.66%, which is 14% below median its own 10-year median of 6.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coles Group stock overvalued right now?
Based on GuruFocus' analysis, Coles Group (FRA:2OF) is currently considered Modestly Overvalued. The stock's GF Value™ is €12.12, compared to a current price of €13.80 — trading 13.9% above its estimated fair value. The current Return-on-Tangible-Asset is 5.66%, which is 14% below median its 10-year median of 6.56 and 45.9% above the Retail - Defensive industry median of 3.88. Coles Group's overall GF Score™ is 73/100 with 8 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 Coles Group (FRA:2OF), the current Return-on-Tangible-Asset is 5.66% 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 Coles Group (FRA:2OF) Overvalued in 2026?
Based on GuruFocus' analysis, Coles Group stock appears to be overvalued.
The current stock price of €13.80 is trading 13.9% above its estimated GF Value™ of €12.12.
GuruFocus considers Coles Group to be Modestly Overvalued.
Key valuation signals for FRA:2OF:
Return-on-Tangible-Asset: 5.66% (14% below median its 10-year median of 6.56)
GF Value™: €12.12 vs. price of €13.80 (13.9% above fair value)
Industry Position: 45.9% above the Retail - Defensive median (#110 of 312)
No single metric tells the full story. See the FRA:2OF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coles is one of Australia's largest retailers, operating the second-largest supermarket chain behind market leader Woolworths, and the country's second-largest liquor chain. The group has an extensive store network of over 1,800 stores and roughly 80% of Australians live within a 10-minute drive from a Coles store. The retailer employs some 120,000 people, who process some 20 million individual customer transactions a week. This compares with Woolworths processing about 30 million customer transactions per week from Australia's population of 27 million.
73GF Score
Get the complete analysis for FRA:2OF
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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