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Fonterra Co-operative GroupNZSE:FCG 65 Return-on-Tangible-Asset is 8.11% as of Jan. 2026, which is 68% above its 10-year median of 4.82. GuruFocus rates NZSE:FCG with a GF Score™ of 65/100 and a GF Value™ of NZ$2.97 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,996 Consumer Packaged Goods companies, Fonterra Co-operative Group ranks better than 63.68% 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. Fonterra Co-operative Group's annualizedNet Income for the quarter that ended in Jan. 2026 was NZ$1,500 Mil. Fonterra Co-operative Group's average total tangible assets for the quarter that ended in Jan. 2026 was NZ$18,502 Mil. Therefore, Fonterra Co-operative Group's annualized Return-on-Tangible-Asset for the quarter that ended in Jan. 2026 was 8.11%.
The historical rank and industry rank for Fonterra Co-operative Group's Return-on-Tangible-Asset or its related term are showing as below:
NZSE:FCG'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -3.8 Med: 4.82 Max: 9.44
Current: 5.94
During the past 13 years, Fonterra Co-operative Group's highest Return-on-Tangible-Asset was 9.44%. The lowest was -3.80%. And the median was 4.82%.
NZSE:FCG's Return-on-Tangible-Asset is ranked better than 63.68% of 1996
companies
in the Consumer Packaged Goods industry
Industry Median: 3.45
vs NZSE:FCG: 5.94
Fonterra Co-operative Group (NZSE:FCG) 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.
Fonterra Co-operative Group Return-on-Tangible-Asset Related Terms
Fonterra Co-operative Group Return-on-Tangible-Asset 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.
Fonterra Co-operative Group Return-on-Tangible-Asset Chart
NZSE:FCG vs KHC, GIS, HRL: Return-on-Tangible-Asset Comparison
For the Packaged Foods subindustry, Fonterra Co-operative 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.
Fonterra Co-operative Group Return-on-Tangible-Asset vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Fonterra Co-operative Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Fonterra Co-operative 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 (Jan. 2026) net income data.
What does a Return-on-Tangible-Asset of 8.11% mean?
Fonterra Co-operative Group (NZSE:FCG) has a Return-on-Tangible-Asset of 8.11% as of Jan. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Fonterra Co-operative Group and its competitors. This is 68% above median its historical median of 4.82. According to the industry distribution chart, Fonterra Co-operative Group ranks #725 out of 1996 companies in the Consumer Packaged Goods industry, placing it in the top 36.3%.
Is Fonterra Co-operative Group's Return-on-Tangible-Asset too high?
Fonterra Co-operative Group's current Return-on-Tangible-Asset of 8.11% is 68% above median its 10-year median of 4.82. The Consumer Packaged Goods industry median Return-on-Tangible-Asset is 3.45. Fonterra Co-operative Group's value of 8.11% is 135.1% above this industry median. Based on the distribution chart, Fonterra Co-operative Group ranks #725 out of 1996 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Fonterra Co-operative Group has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fonterra Co-operative Group's Return-on-Tangible-Asset compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Fonterra Co-operative Group ranks #725 out of 1996 companies for Return-on-Tangible-Asset. This puts Fonterra Co-operative Group in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.45. Fonterra Co-operative Group's value of 8.11% is 135.1% above this benchmark. While the company's 10-year median is 4.82 vs. the industry median of 3.45, Fonterra Co-operative 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 Consumer Packaged Goods company?
The median Return-on-Tangible-Asset among Consumer Packaged Goods companies is 3.45, based on 1,996 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. Fonterra Co-operative Group's current Return-on-Tangible-Asset of 8.11% is 135.1% 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 Fonterra Co-operative Group and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Asset is 3.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fonterra Co-operative Group's current Return-on-Tangible-Asset is 8.11%, which is 68% above median its own 10-year median of 4.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fonterra Co-operative Group stock overvalued right now?
Based on GuruFocus' analysis, Fonterra Co-operative Group (NZSE:FCG) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$2.97, compared to a current price of NZ$4.24 — trading 42.8% above its estimated fair value. The current Return-on-Tangible-Asset is 8.11%, which is 68% above median its 10-year median of 4.82 and 135.1% above the Consumer Packaged Goods industry median of 3.45. Fonterra Co-operative Group's overall GF Score™ is 65/100 with 5 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 Fonterra Co-operative Group (NZSE:FCG), the current Return-on-Tangible-Asset is 8.11% as of Jan. 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.
Is Fonterra Co-operative Group (NZSE:FCG) Overvalued in 2026?
Based on GuruFocus' analysis, Fonterra Co-operative Group stock appears to be overvalued.
The current stock price of NZ$4.24 is trading 42.8% above its estimated GF Value™ of NZ$2.97.
GuruFocus considers Fonterra Co-operative Group to be Significantly Overvalued.
Key valuation signals for NZSE:FCG:
Return-on-Tangible-Asset: 8.11% (68% above median its 10-year median of 4.82)
GF Value™: NZ$2.97 vs. price of NZ$4.24 (42.8% above fair value)
Industry Position: 135.1% above the Consumer Packaged Goods median (#725 of 1996)
No single metric tells the full story. See the NZSE:FCG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets is Asia, China, Australia, New Zealand, the United States, and the Rest of the world.
65GF Score
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