Compagnie Financiere RichemontCHIX:CFRZ -0.84%93 Return-on-Tangible-Equity is 15.24% as of Mar. 2026, which is 26% above its 10-year median of 12.11. GuruFocus rates CHIX:CFRZ with a GF Score™ of 93/100 and a GF Value™ of CHF146.43 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,060 Retail - Cyclical companies, Compagnie Financiere Richemont ranks better than 67.17% 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. Compagnie Financiere Richemont's annualized net income for the quarter that ended in Mar. 2026 was CHF3,042 Mil. Compagnie Financiere Richemont's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF19,960 Mil. Therefore, Compagnie Financiere Richemont's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.24%.
The historical rank and industry rank for Compagnie Financiere Richemont's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:CFRz'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.94 Med: 12.11 Max: 22.03
Current: 16.2
During the past 13 years, Compagnie Financiere Richemont's highest Return-on-Tangible-Equity was 22.03%. The lowest was 1.94%. And the median was 12.11%.
CHIX:CFRz's Return-on-Tangible-Equity is ranked better than 67.17% of 1060
companies
in the Retail - Cyclical industry
Industry Median: 8.34
vs CHIX:CFRz: 16.20
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.
Compagnie Financiere Richemont Return-on-Tangible-Equity Related Terms
Compagnie Financiere Richemont Return-on-Tangible-Equity 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.
CHIX:CFRZ vs TPR, SIG, CPRI: Return-on-Tangible-Equity Comparison
For the Luxury Goods subindustry, Compagnie Financiere Richemont'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.
Compagnie Financiere Richemont Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Compagnie Financiere Richemont's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Compagnie Financiere Richemont'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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.24% mean?
Compagnie Financiere Richemont (CHIX:CFRZ) has a Return-on-Tangible-Equity of 15.24% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Compagnie Financiere Richemont and its competitors. This is 26% above median its historical median of 12.11. Over the past decade, Compagnie Financiere Richemont's Return-on-Tangible-Equity has ranged from 1.94 to 22.03. According to the industry distribution chart, Compagnie Financiere Richemont ranks #348 out of 1060 companies in the Retail - Cyclical industry, placing it in the top 32.8%.
Is Compagnie Financiere Richemont's Return-on-Tangible-Equity too high?
Compagnie Financiere Richemont's current Return-on-Tangible-Equity of 15.24% is 26% above median its 10-year median of 12.11. Over the past 10 years, this metric has ranged from a low of 1.94 to a high of 22.03. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.34. Compagnie Financiere Richemont's value of 15.24% is 82.7% above this industry median. Based on the distribution chart, Compagnie Financiere Richemont ranks #348 out of 1060 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Compagnie Financiere Richemont has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Compagnie Financiere Richemont's Return-on-Tangible-Equity compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Compagnie Financiere Richemont ranks #348 out of 1060 companies for Return-on-Tangible-Equity. This puts Compagnie Financiere Richemont in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.34. Compagnie Financiere Richemont's value of 15.24% is 82.7% above this benchmark. Historically, Compagnie Financiere Richemont's own Return-on-Tangible-Equity has ranged from 1.94 to 22.03 over the past decade. While the company's 10-year median is 12.11 vs. the industry median of 8.34, Compagnie Financiere Richemont 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 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. Compagnie Financiere Richemont's current Return-on-Tangible-Equity of 15.24% is 82.7% 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 Compagnie Financiere Richemont 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. Compagnie Financiere Richemont's current Return-on-Tangible-Equity is 15.24%, which is 26% above median its own 10-year median of 12.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Compagnie Financiere Richemont stock overvalued right now?
Based on GuruFocus' analysis, Compagnie Financiere Richemont (CHIX:CFRZ) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF146.43, compared to a current price of CHF182.55 — trading 24.7% above its estimated fair value. The current Return-on-Tangible-Equity is 15.24%, which is 26% above median its 10-year median of 12.11 and 82.7% above the Retail - Cyclical industry median of 8.34. Compagnie Financiere Richemont's overall GF Score™ is 93/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Compagnie Financiere Richemont (CHIX:CFRZ), the current Return-on-Tangible-Equity is 15.24% as of Mar. 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 Compagnie Financiere Richemont (CHIX:CFRZ) Overvalued in 2026?
Based on GuruFocus' analysis, Compagnie Financiere Richemont stock appears to be overvalued.
The current stock price of CHF182.55 is trading 24.7% above its estimated GF Value™ of CHF146.43.
GuruFocus considers Compagnie Financiere Richemont to be Modestly Overvalued.
Key valuation signals for CHIX:CFRZ:
Return-on-Tangible-Equity: 15.24% (26% above median its 10-year median of 12.11)
GF Value™: CHF146.43 vs. price of CHF182.55 (24.7% above fair value)
Industry Position: 82.7% above the Retail - Cyclical median (#348 of 1060)
No single metric tells the full story. See the CHIX:CFRZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Compagnie Financiere Richemont Business Description
Richemont is a luxury goods conglomerate with 20 brands. Jewelry and watch brands make up 87% of sales, but the group is also active in accessories, writing instruments, clothing, and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for over 70% of revenue and the vast majority of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, Chloe, and Montblanc.
93GF Score
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