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Luckin CoffeeSTU:LC0A +3.68%74 Return-on-Tangible-Asset is 17.84% as of Jun. 2026, which is 276% above its 10-year median of 4.75. GuruFocus rates STU:LC0A with a GF Score™ of 74/100 and a GF Value™ of €43.94 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 364 Restaurants companies, Luckin Coffee ranks better than 88.74% 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. Luckin Coffee's annualizedNet Income for the quarter that ended in Jun. 2026 was €762 Mil. Luckin Coffee's average total tangible assets for the quarter that ended in Jun. 2026 was €4,270 Mil. Therefore, Luckin Coffee's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 17.84%.
The historical rank and industry rank for Luckin Coffee's Return-on-Tangible-Asset or its related term are showing as below:
STU:LC0A'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -84.4 Med: 4.75 Max: 19.64
Current: 12.37
During the past 9 years, Luckin Coffee's highest Return-on-Tangible-Asset was 19.64%. The lowest was -84.40%. And the median was 4.75%.
STU:LC0A's Return-on-Tangible-Asset is ranked better than 88.74% of 364
companies
in the Restaurants industry
Industry Median: 2.375
vs STU:LC0A: 12.37
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.
Luckin Coffee Return-on-Tangible-Asset Related Terms
Luckin Coffee Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Luckin Coffee'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.
STU:LC0A vs BROS, EAT, DPZ: Return-on-Tangible-Asset Comparison
For the Restaurants subindustry, Luckin Coffee'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.
Luckin Coffee Return-on-Tangible-Asset vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Luckin Coffee's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Luckin Coffee'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 four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 17.84% mean?
Luckin Coffee (STU:LC0A) has a Return-on-Tangible-Asset of 17.84% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Luckin Coffee and its competitors. This is 276% above median its historical median of 4.75. According to the industry distribution chart, Luckin Coffee ranks #41 out of 364 companies in the Restaurants industry, placing it in the top 11.3%.
Is Luckin Coffee's Return-on-Tangible-Asset too high?
Luckin Coffee's current Return-on-Tangible-Asset of 17.84% is 276% above median its 10-year median of 4.75. The Restaurants industry median Return-on-Tangible-Asset is 2.38. Luckin Coffee's value of 17.84% is 651.2% above this industry median. Based on the distribution chart, Luckin Coffee ranks #41 out of 364 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Luckin Coffee has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luckin Coffee's Return-on-Tangible-Asset compare to BROS and EAT?
According to the Restaurants industry distribution chart, Luckin Coffee ranks #41 out of 364 companies for Return-on-Tangible-Asset. This places Luckin Coffee in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.38. Luckin Coffee's value of 17.84% is 651.2% above this benchmark. While the company's 10-year median is 4.75 vs. the industry median of 2.38, Luckin Coffee 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 Restaurants company?
The median Return-on-Tangible-Asset among Restaurants companies is 2.38, based on 364 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. Luckin Coffee's current Return-on-Tangible-Asset of 17.84% is 651.2% 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 Luckin Coffee and its competitors. For the Restaurants industry, the median Return-on-Tangible-Asset is 2.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luckin Coffee's current Return-on-Tangible-Asset is 17.84%, which is 276% above median its own 10-year median of 4.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luckin Coffee stock overvalued right now?
Based on GuruFocus' analysis, Luckin Coffee (STU:LC0A) is currently considered Modestly Undervalued. The stock's GF Value™ is €43.94, compared to a current price of €31.00 — trading 29.4% below its estimated fair value. The current Return-on-Tangible-Asset is 17.84%, which is 276% above median its 10-year median of 4.75 and 651.2% above the Restaurants industry median of 2.38. Luckin Coffee's overall GF Score™ is 74/100 with 1 warning sign 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 Luckin Coffee (STU:LC0A), the current Return-on-Tangible-Asset is 17.84% as of Jun. 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 Luckin Coffee (STU:LC0A) Overvalued in 2026?
Based on GuruFocus' analysis, Luckin Coffee stock appears to be undervalued.
The current stock price of €31.00 is trading 29.4% below its estimated GF Value™ of €43.94.
GuruFocus considers Luckin Coffee to be Modestly Undervalued.
Key valuation signals for STU:LC0A:
Return-on-Tangible-Asset: 17.84% (276% above median its 10-year median of 4.75)
GF Value™: €43.94 vs. price of €31.00 (29.4% below fair value)
Industry Position: 651.2% above the Restaurants median (#41 of 364)
No single metric tells the full story. See the STU:LC0A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luckin Coffee Inc operates a coffee network in China, providing retail services for freshly brewed drinks and pre-made food and beverage items. Its technology-driven model is built on mobile apps and a store network, offering a cashier-less purchase experience with features such as store selection, advance ordering, multiple payment options, and real-time order tracking. The company mainly operates self-operated pick-up stores in high-demand locations, enabling rapid and cost-efficient expansion, and also uses partnership and franchise models. It offers multiple products, including coffee, tea drinks, snacks, and light meals, with recipes tailored to local preferences, supported by sourcing and proprietary technology for operations and supply chain management.
74GF Score
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