Chow Tai Fook Jewellery GroupFRA:1CT +2.46%94 Return-on-Tangible-Equity is 45.50% as of Mar. 2026, which is 144% above its 10-year median of 18.65. GuruFocus rates FRA:1CT with a GF Score™ of 94/100 and a GF Value™ of €1.19 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,056 Retail - Cyclical companies, Chow Tai Fook Jewellery Group ranks better than 82.95% 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. Chow Tai Fook Jewellery Group's annualized net income for the quarter that ended in Mar. 2026 was €1,430 Mil. Chow Tai Fook Jewellery Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €3,143 Mil. Therefore, Chow Tai Fook Jewellery Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 45.50%.
The historical rank and industry rank for Chow Tai Fook Jewellery Group's Return-on-Tangible-Equity or its related term are showing as below:
FRA:1CT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.4 Med: 18.65 Max: 32.33
Current: 32.33
During the past 13 years, Chow Tai Fook Jewellery Group's highest Return-on-Tangible-Equity was 32.33%. The lowest was 9.40%. And the median was 18.65%.
FRA:1CT's Return-on-Tangible-Equity is ranked better than 82.95% of 1056
companies
in the Retail - Cyclical industry
Industry Median: 8.325
vs FRA:1CT: 32.33
Chow Tai Fook Jewellery Group (FRA:1CT) 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.
Chow Tai Fook Jewellery Group Return-on-Tangible-Equity Related Terms
Chow Tai Fook Jewellery Group 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.
Chow Tai Fook Jewellery Group Return-on-Tangible-Equity Chart
FRA:1CT vs TPR: Return-on-Tangible-Equity Comparison
For the Luxury Goods subindustry, Chow Tai Fook Jewellery 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.
Chow Tai Fook Jewellery Group Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Chow Tai Fook Jewellery Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Chow Tai Fook Jewellery 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 (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 45.50% mean?
Chow Tai Fook Jewellery Group (FRA:1CT) has a Return-on-Tangible-Equity of 45.50% 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 Chow Tai Fook Jewellery Group and its competitors. This is 144% above median its historical median of 18.65. Over the past decade, Chow Tai Fook Jewellery Group's Return-on-Tangible-Equity has ranged from 9.40 to 32.33. According to the industry distribution chart, Chow Tai Fook Jewellery Group ranks #180 out of 1056 companies in the Retail - Cyclical industry, placing it in the top 17%.
Is Chow Tai Fook Jewellery Group's Return-on-Tangible-Equity too high?
Chow Tai Fook Jewellery Group's current Return-on-Tangible-Equity of 45.50% is 144% above median its 10-year median of 18.65. Over the past 10 years, this metric has ranged from a low of 9.40 to a high of 32.33. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.33. Chow Tai Fook Jewellery Group's value of 45.50% is 446.5% above this industry median. Based on the distribution chart, Chow Tai Fook Jewellery Group ranks #180 out of 1056 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Chow Tai Fook Jewellery Group has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chow Tai Fook Jewellery Group's Return-on-Tangible-Equity compare to TPR?
According to the Retail - Cyclical industry distribution chart, Chow Tai Fook Jewellery Group ranks #180 out of 1056 companies for Return-on-Tangible-Equity. This places Chow Tai Fook Jewellery Group in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.33. Chow Tai Fook Jewellery Group's value of 45.50% is 446.5% above this benchmark. Historically, Chow Tai Fook Jewellery Group's own Return-on-Tangible-Equity has ranged from 9.40 to 32.33 over the past decade. While the company's 10-year median is 18.65 vs. the industry median of 8.33, Chow Tai Fook Jewellery 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 - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.33, based on 1,056 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. Chow Tai Fook Jewellery Group's current Return-on-Tangible-Equity of 45.50% is 446.5% 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 Chow Tai Fook Jewellery Group and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chow Tai Fook Jewellery Group's current Return-on-Tangible-Equity is 45.50%, which is 144% above median its own 10-year median of 18.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chow Tai Fook Jewellery Group stock overvalued right now?
Based on GuruFocus' analysis, Chow Tai Fook Jewellery Group (FRA:1CT) is currently considered Fairly Valued. The stock's GF Value™ is €1.19, compared to a current price of €1.25 — trading 5% above its estimated fair value. The current Return-on-Tangible-Equity is 45.50%, which is 144% above median its 10-year median of 18.65 and 446.5% above the Retail - Cyclical industry median of 8.33. Chow Tai Fook Jewellery Group's overall GF Score™ is 94/100 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 Chow Tai Fook Jewellery Group (FRA:1CT), the current Return-on-Tangible-Equity is 45.50% 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 Chow Tai Fook Jewellery Group (FRA:1CT) Overvalued in 2026?
Based on GuruFocus' analysis, Chow Tai Fook Jewellery Group stock appears to be overvalued.
The current stock price of €1.25 is trading 5% above its estimated GF Value™ of €1.19.
GuruFocus considers Chow Tai Fook Jewellery Group to be Fairly Valued.
Key valuation signals for FRA:1CT:
Return-on-Tangible-Equity: 45.50% (144% above median its 10-year median of 18.65)
GF Value™: €1.19 vs. price of €1.25 (5% above fair value)
Industry Position: 446.5% above the Retail - Cyclical median (#180 of 1056)
No single metric tells the full story. See the FRA:1CT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chow Tai Fook Jewellery Group Business Description
Chow Tai Fook Jewellery Group Ltd core business is the manufacturing and selling of high-end luxury, mass luxury, and youth line jewellery products, and the distribution of watches of various brands. Its brand portfolio includes Chow Tai Fook, Hearts On Fire, Enzo and Monologue, offering a wide multiple products and an expanding range of IP collaborations. The Group's offerings include high jewellery collections and Chow Tai Fook Home, a luxury home decor category. Geographically, the Group operates through Mainland China, Hong Kong, Macau and other markets, with Mainland China contributing the majority of revenue.
94GF Score
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