Baby Bunting GroupASX:BBN -2.21%77 Return-on-Tangible-Equity is 6.09% as of Dec. 2025, which is 69% below its 10-year median of 19.83. GuruFocus rates ASX:BBN with a GF Score™ of 77/100 and a GF Value™ of A$1.94 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 1,060 Retail - Cyclical companies, Baby Bunting Group ranks better than 60.57% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Baby Bunting Group's annualized net income for the quarter that ended in Dec. 2025 was A$3.7 Mil. Baby Bunting Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$60.7 Mil. Therefore, Baby Bunting Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 6.09%.
The historical rank and industry rank for Baby Bunting Group's Return-on-Tangible-Equity or its related term are showing as below:
ASX:BBN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.28 Med: 19.83 Max: 34.25
Current: 12.99
During the past 10 years, Baby Bunting Group's highest Return-on-Tangible-Equity was 34.25%. The lowest was 3.28%. And the median was 19.83%.
ASX:BBN's Return-on-Tangible-Equity is ranked better than 60.57% of 1060
companies
in the Retail - Cyclical industry
Industry Median: 8.34
vs ASX:BBN: 12.99
Baby Bunting Group (ASX:BBN) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
Baby Bunting Group Return-on-Tangible-Equity Related Terms
Baby Bunting Group Return-on-Tangible-Equity Historical Data
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The historical data trend for Baby Bunting Group's Return-on-Tangible-Equity 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.
Baby Bunting Group Return-on-Tangible-Equity Chart
ASX:BBN vs CASY, WSM, DKS: Return-on-Tangible-Equity Comparison
For the Specialty Retail subindustry, Baby Bunting Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Baby Bunting Group Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Baby Bunting Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Baby Bunting Group's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.09% mean?
Baby Bunting Group (ASX:BBN) has a Return-on-Tangible-Equity of 6.09% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Baby Bunting Group and its competitors. This is 69% below median its historical median of 19.83. Over the past decade, Baby Bunting Group's Return-on-Tangible-Equity has ranged from 3.28 to 34.25. According to the industry distribution chart, Baby Bunting Group ranks #418 out of 1060 companies in the Retail - Cyclical industry, placing it in the top 39.4%.
Is Baby Bunting Group's Return-on-Tangible-Equity too high?
Baby Bunting Group's current Return-on-Tangible-Equity of 6.09% is 69% below median its 10-year median of 19.83. Over the past 10 years, this metric has ranged from a low of 3.28 to a high of 34.25. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.34. Baby Bunting Group's value of 6.09% is 27% below this industry median. Based on the distribution chart, Baby Bunting Group ranks #418 out of 1060 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Baby Bunting Group has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Baby Bunting Group's Return-on-Tangible-Equity compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Baby Bunting Group ranks #418 out of 1060 companies for Return-on-Tangible-Equity. This puts Baby Bunting Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.34. Baby Bunting Group's value of 6.09% is 27% below this benchmark. Historically, Baby Bunting Group's own Return-on-Tangible-Equity has ranged from 3.28 to 34.25 over the past decade. While the company's 10-year median is 19.83 vs. the industry median of 8.34, Baby Bunting Group 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-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.34, based on 1,060 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Baby Bunting Group's current Return-on-Tangible-Equity of 6.09% is 27% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Baby Bunting Group and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Baby Bunting Group's current Return-on-Tangible-Equity is 6.09%, which is 69% below median its own 10-year median of 19.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Baby Bunting Group stock overvalued right now?
Based on GuruFocus' analysis, Baby Bunting Group (ASX:BBN) is currently considered Significantly Undervalued. The stock's GF Value™ is A$1.94, compared to a current price of A$1.33 — trading 31.7% below its estimated fair value. The current Return-on-Tangible-Equity is 6.09%, which is 69% below median its 10-year median of 19.83 and 27% below the Retail - Cyclical industry median of 8.34. Baby Bunting Group's overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Baby Bunting Group (ASX:BBN), the current Return-on-Tangible-Equity is 6.09% 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 Baby Bunting Group (ASX:BBN) Overvalued in 2026?
Based on GuruFocus' analysis, Baby Bunting Group stock appears to be undervalued.
The current stock price of A$1.33 is trading 31.7% below its estimated GF Value™ of A$1.94.
GuruFocus considers Baby Bunting Group to be Significantly Undervalued.
Key valuation signals for ASX:BBN:
Return-on-Tangible-Equity: 6.09% (69% below median its 10-year median of 19.83)
GF Value™: A$1.94 vs. price of A$1.33 (31.7% below fair value)
Industry Position: 27% below the Retail - Cyclical median (#418 of 1060)
No single metric tells the full story. See the ASX:BBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Baby Bunting Group Ltd operates as a nursery retailer in Australia. The company product categories include prams, cots and nursery furniture, car safety, toys, babywear, feeding, nappies, manchester, and associated accessories. The company also has operations in New Zealand, with a store in Auckland and an online store. Geographically, it derives revenue from Australia and New Zealand.
77GF Score
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