Coles GroupCLEGF 60 Return-on-Tangible-Equity is 64.11% as of Dec. 2025, which is 27% below its 10-year median of 88.25. GuruFocus rates CLEGF with a GF Score™ of 60/100 and a GF Value™ of $12.79 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 298 Retail - Defensive companies, Coles Group ranks better than 87.92% 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. Coles Group's annualized net income for the quarter that ended in Dec. 2025 was $679 Mil. Coles Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $1,059 Mil. Therefore, Coles Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 64.11%.
The historical rank and industry rank for Coles Group's Return-on-Tangible-Equity or its related term are showing as below:
CLEGF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 64.22 Med: 88.25 Max: 152.16
Current: 64.22
During the past 8 years, Coles Group's highest Return-on-Tangible-Equity was 152.16%. The lowest was 64.22%. And the median was 88.25%.
CLEGF's Return-on-Tangible-Equity is ranked better than 87.92% of 298
companies
in the Retail - Defensive industry
Industry Median: 11.085
vs CLEGF: 64.22
Coles Group (OTCPK:CLEGF) 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.
Coles Group Return-on-Tangible-Equity Related Terms
Coles Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Coles 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.
CLEGF vs KR, SFM, ACI: Return-on-Tangible-Equity Comparison
For the Grocery Stores subindustry, Coles 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.
Coles Group Return-on-Tangible-Equity vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Coles Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Coles 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 64.11% mean?
Coles Group (CLEGF) has a Return-on-Tangible-Equity of 64.11% 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 Coles Group and its competitors. This is 27% below median its historical median of 88.25. Over the past decade, Coles Group's Return-on-Tangible-Equity has ranged from 64.22 to 152.16. According to the industry distribution chart, Coles Group ranks #36 out of 298 companies in the Retail - Defensive industry, placing it in the top 12.1%.
Is Coles Group's Return-on-Tangible-Equity too high?
Coles Group's current Return-on-Tangible-Equity of 64.11% is 27% below median its 10-year median of 88.25. Over the past 10 years, this metric has ranged from a low of 64.22 to a high of 152.16. The Retail - Defensive industry median Return-on-Tangible-Equity is 11.09. Coles Group's value of 64.11% is 478.3% above this industry median. Based on the distribution chart, Coles Group ranks #36 out of 298 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Coles Group has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Coles Group's Return-on-Tangible-Equity compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Coles Group ranks #36 out of 298 companies for Return-on-Tangible-Equity. This places Coles Group in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.09. Coles Group's value of 64.11% is 478.3% above this benchmark. Historically, Coles Group's own Return-on-Tangible-Equity has ranged from 64.22 to 152.16 over the past decade. While the company's 10-year median is 88.25 vs. the industry median of 11.09, Coles 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-Equity for a Retail - Defensive company?
The median Return-on-Tangible-Equity among Retail - Defensive companies is 11.09, based on 298 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. Coles Group's current Return-on-Tangible-Equity of 64.11% is 478.3% 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 Coles Group and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Equity is 11.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coles Group's current Return-on-Tangible-Equity is 64.11%, which is 27% below median its own 10-year median of 88.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coles Group stock overvalued right now?
Based on GuruFocus' analysis, Coles Group (CLEGF) is currently considered Significantly Overvalued. The stock's GF Value™ is $12.79, compared to a current price of $17.14 — trading 34% above its estimated fair value. The current Return-on-Tangible-Equity is 64.11%, which is 27% below median its 10-year median of 88.25 and 478.3% above the Retail - Defensive industry median of 11.09. Coles Group's overall GF Score™ is 60/100 with 8 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 Coles Group (CLEGF), the current Return-on-Tangible-Equity is 64.11% 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 Coles Group (CLEGF) Overvalued in 2026?
Based on GuruFocus' analysis, Coles Group stock appears to be overvalued.
The current stock price of $17.14 is trading 34% above its estimated GF Value™ of $12.79.
GuruFocus considers Coles Group to be Significantly Overvalued.
Key valuation signals for CLEGF:
Return-on-Tangible-Equity: 64.11% (27% below median its 10-year median of 88.25)
GF Value™: $12.79 vs. price of $17.14 (34% above fair value)
Industry Position: 478.3% above the Retail - Defensive median (#36 of 298)
No single metric tells the full story. See the CLEGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coles is one of Australia's largest retailers, operating the second-largest supermarket chain behind market leader Woolworths, and the country's second-largest liquor chain. The group has an extensive store network of over 1,800 stores and roughly 80% of Australians live within a 10-minute drive from a Coles store. The retailer employs some 120,000 people, who process some 20 million individual customer transactions a week. This compares with Woolworths processing about 30 million customer transactions per week from Australia's population of 27 million.
60GF Score
Get the complete analysis for CLEGF
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