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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. China Shengmu Organic Milk's annualized net income for the quarter that ended in Dec. 2025 was €-78.8 Mil. China Shengmu Organic Milk's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €438.1 Mil. Therefore, China Shengmu Organic Milk's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -18.00%.
The historical rank and industry rank for China Shengmu Organic Milk's Return-on-Tangible-Equity or its related term are showing as below:
FRA:7OM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -68.53 Med: 1.71 Max: 15.55
Current: -10.67
During the past 13 years, China Shengmu Organic Milk's highest Return-on-Tangible-Equity was 15.55%. The lowest was -68.53%. And the median was 1.71%.
FRA:7OM's Return-on-Tangible-Equity is ranked worse than 86.85% of 1878
companies
in the Consumer Packaged Goods industry
Industry Median: 7.78
vs FRA:7OM: -10.67
China Shengmu Organic Milk (FRA:7OM) 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.
China Shengmu Organic Milk Return-on-Tangible-Equity Related Terms
China Shengmu Organic Milk 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.
China Shengmu Organic Milk Return-on-Tangible-Equity Chart
FRA:7OM vs ADM, BG, TSN: Return-on-Tangible-Equity Comparison
For the Farm Products subindustry, China Shengmu Organic Milk'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.
China Shengmu Organic Milk Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, China Shengmu Organic Milk's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where China Shengmu Organic Milk'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 -18.00% mean?
China Shengmu Organic Milk (FRA:7OM) has a Return-on-Tangible-Equity of -18.00% 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 China Shengmu Organic Milk and its competitors. According to the industry distribution chart, China Shengmu Organic Milk ranks #1631 out of 1878 companies in the Consumer Packaged Goods industry, placing it in the top 86.8%.
Is China Shengmu Organic Milk's Return-on-Tangible-Equity too high?
China Shengmu Organic Milk's current Return-on-Tangible-Equity is -18.00%. Based on the distribution chart, China Shengmu Organic Milk ranks #1631 out of 1878 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, China Shengmu Organic Milk has a GF Score™ of 49/100, reflecting its overall financial health beyond just this single metric.
How does China Shengmu Organic Milk's Return-on-Tangible-Equity compare to ADM and BG?
According to the Consumer Packaged Goods industry distribution chart, China Shengmu Organic Milk ranks #1631 out of 1878 companies for Return-on-Tangible-Equity. This places China Shengmu Organic Milk in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.78. 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 7.78, based on 1,878 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. 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 China Shengmu Organic Milk and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Shengmu Organic Milk's current Return-on-Tangible-Equity is -18.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Shengmu Organic Milk stock overvalued right now?
China Shengmu Organic Milk (FRA:7OM) has a current Return-on-Tangible-Equity of -18.00%. The stock's GF Value™ is €0.03, compared to a current price of €0.04 — trading 23.3% above its estimated fair value. The current Return-on-Tangible-Equity is -18.00%. China Shengmu Organic Milk's overall GF Score™ is 49/100 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 China Shengmu Organic Milk (FRA:7OM), the current Return-on-Tangible-Equity is -18.00% 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 China Shengmu Organic Milk (FRA:7OM) Overvalued in 2026?
Based on GuruFocus' analysis, China Shengmu Organic Milk stock appears to be overvalued.
The current stock price of €0.04 is trading 23.3% above its estimated GF Value™ of €0.03.
Key valuation signals for FRA:7OM:
Return-on-Tangible-Equity: -18.00%
GF Value™: €0.03 vs. price of €0.04 (23.3% above fair value)
No single metric tells the full story. See the FRA:7OM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Shengmu Organic Milk Ltd is an organic dairy company in China. The company, through its subsidiaries, is engaged in the production and distribution of raw milk and dairy products. It operates in a single segment, which is the Sale of raw milk. The company's income is mainly derived from its business activities in Mainland China.
49GF Score
Get the complete analysis for FRA:7OM
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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