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Associated British FoodsCHIX:ABFL +0.89%82 Return-on-Tangible-Equity is 17.38% as of Feb. 2026, which is 54% above its 10-year median of 11.28. GuruFocus rates CHIX:ABFL with a GF Score™ of 82/100 and a GF Value™ of £22.80 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,904 Consumer Packaged Goods companies, Associated British Foods ranks better than 56.93% 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. Associated British Foods's annualized net income for the quarter that ended in Feb. 2026 was £824 Mil. Associated British Foods's average shareholder tangible equity for the quarter that ended in Feb. 2026 was £9,294 Mil. Therefore, Associated British Foods's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 8.87%.
The historical rank and industry rank for Associated British Foods's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:ABFl'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.87 Med: 11.28 Max: 18.97
Current: 10.27
During the past 13 years, Associated British Foods's highest Return-on-Tangible-Equity was 18.97%. The lowest was 5.87%. And the median was 11.28%.
CHIX:ABFl's Return-on-Tangible-Equity is ranked better than 56.93% of 1904
companies
in the Consumer Packaged Goods industry
Industry Median: 8.045
vs CHIX:ABFl: 10.27
Associated British Foods (CHIX:ABFl) 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.
Associated British Foods Return-on-Tangible-Equity Related Terms
Associated British Foods Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Associated British Foods'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.
Associated British Foods Return-on-Tangible-Equity Chart
CHIX:ABFL vs KHC, GIS: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Associated British Foods'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.
Associated British Foods Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Associated British Foods's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Associated British Foods'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 (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 17.38% mean?
Associated British Foods (CHIX:ABFL) has a Return-on-Tangible-Equity of 17.38% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Associated British Foods and its competitors. This is 54% above median its historical median of 11.28. Over the past decade, Associated British Foods' Return-on-Tangible-Equity has ranged from 5.87 to 18.97. According to the industry distribution chart, Associated British Foods ranks #820 out of 1904 companies in the Consumer Packaged Goods industry, placing it in the top 43.1%.
Is Associated British Foods' Return-on-Tangible-Equity too high?
Associated British Foods' current Return-on-Tangible-Equity of 17.38% is 54% above median its 10-year median of 11.28. Over the past 10 years, this metric has ranged from a low of 5.87 to a high of 18.97. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 8.05. Associated British Foods' value of 17.38% is 116% above this industry median. Based on the distribution chart, Associated British Foods ranks #820 out of 1904 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Associated British Foods has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Associated British Foods' Return-on-Tangible-Equity compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Associated British Foods ranks #820 out of 1904 companies for Return-on-Tangible-Equity. This puts Associated British Foods in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.05. Associated British Foods' value of 17.38% is 116% above this benchmark. Historically, Associated British Foods' own Return-on-Tangible-Equity has ranged from 5.87 to 18.97 over the past decade. While the company's 10-year median is 11.28 vs. the industry median of 8.05, Associated British Foods 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-Equity for a Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 8.05, based on 1,904 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. Associated British Foods's current Return-on-Tangible-Equity of 17.38% is 116% 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-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 Associated British Foods and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 8.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Associated British Foods's current Return-on-Tangible-Equity is 17.38%, which is 54% above median its own 10-year median of 11.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Associated British Foods stock overvalued right now?
Based on GuruFocus' analysis, Associated British Foods (CHIX:ABFL) is currently considered Modestly Undervalued. The stock's GF Value™ is £22.80, compared to a current price of £18.62 — trading 18.3% below its estimated fair value. The current Return-on-Tangible-Equity is 17.38%, which is 54% above median its 10-year median of 11.28 and 116% above the Consumer Packaged Goods industry median of 8.05. Associated British Foods' overall GF Score™ is 82/100 with 2 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 Associated British Foods (CHIX:ABFL), the current Return-on-Tangible-Equity is 17.38% as of Feb. 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 Associated British Foods (CHIX:ABFL) Overvalued in 2026?
Based on GuruFocus' analysis, Associated British Foods stock appears to be undervalued.
The current stock price of £18.62 is trading 18.3% below its estimated GF Value™ of £22.80.
GuruFocus considers Associated British Foods to be Modestly Undervalued.
Key valuation signals for CHIX:ABFL:
Return-on-Tangible-Equity: 17.38% (54% above median its 10-year median of 11.28)
GF Value™: £22.80 vs. price of £18.62 (18.3% below fair value)
Industry Position: 116% above the Consumer Packaged Goods median (#820 of 1904)
No single metric tells the full story. See the CHIX:ABFL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Associated British Foods is a diversified international food, ingredients, and retail group with 138,000 employees and operations in 56 countries across Europe, Africa, the Americas, Asia, and Australia. The group sells branded groceries, grows and processes sugar, supplies farmers with crop input and animal feed, and runs the multinational Primark clothing retail chain. It also supplies ingredients like bakers' yeast, enzymes, lipids, and cereal specialties. In fiscal 2025, approximately 36% of sales came from the UK, and Primark accounted for around 60% of operating profit.On April 21, 2026, ABF announced it plans to separate Primark and the food businesses. Subject to approvals, the demerger is expected to become effective at the end of 2027.
82GF Score
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