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DAVIDsTEAFRA:DAT 44 Return-on-Tangible-Equity is 13.05% as of Jan. 2026. GuruFocus rates FRA:DAT with a GF Score™ of 44/100 and a GF Value™ of €0.13 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,881 Consumer Packaged Goods companies, DAVIDsTEA ranks better than 67.57% 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. DAVIDsTEA's annualized net income for the quarter that ended in Jan. 2026 was €1.80 Mil. DAVIDsTEA's average shareholder tangible equity for the quarter that ended in Jan. 2026 was €13.76 Mil. Therefore, DAVIDsTEA's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2026 was 13.05%.
The historical rank and industry rank for DAVIDsTEA's Return-on-Tangible-Equity or its related term are showing as below:
FRA:DAT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -202.54 Med: -17.48 Max: 1401.97
Current: 13.79
During the past 12 years, DAVIDsTEA's highest Return-on-Tangible-Equity was 1,401.97%. The lowest was -202.54%. And the median was -17.48%.
FRA:DAT's Return-on-Tangible-Equity is ranked better than 67.57% of 1881
companies
in the Consumer Packaged Goods industry
Industry Median: 7.86
vs FRA:DAT: 13.79
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.
DAVIDsTEA Return-on-Tangible-Equity Related Terms
DAVIDsTEA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for DAVIDsTEA'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.
FRA:DAT vs BRLS, JVA, STCB: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, DAVIDsTEA'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.
DAVIDsTEA Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, DAVIDsTEA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where DAVIDsTEA'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 one times the annual (Jan. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.05% mean?
DAVIDsTEA (FRA:DAT) has a Return-on-Tangible-Equity of 13.05% as of Jan. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on DAVIDsTEA and its competitors. According to the industry distribution chart, DAVIDsTEA ranks #610 out of 1881 companies in the Consumer Packaged Goods industry, placing it in the top 32.4%.
Is DAVIDsTEA's Return-on-Tangible-Equity too high?
DAVIDsTEA's current Return-on-Tangible-Equity is 13.05%. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.86. DAVIDsTEA's value of 13.05% is 66% above this industry median. Based on the distribution chart, DAVIDsTEA ranks #610 out of 1881 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, DAVIDsTEA has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does DAVIDsTEA's Return-on-Tangible-Equity compare to BRLS and JVA?
According to the Consumer Packaged Goods industry distribution chart, DAVIDsTEA ranks #610 out of 1881 companies for Return-on-Tangible-Equity. This puts DAVIDsTEA in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.86. DAVIDsTEA's value of 13.05% is 66% above this benchmark. 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 7.86, based on 1,881 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. DAVIDsTEA's current Return-on-Tangible-Equity of 13.05% is 66% 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 DAVIDsTEA and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DAVIDsTEA's current Return-on-Tangible-Equity is 13.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DAVIDsTEA stock overvalued right now?
Based on GuruFocus' analysis, DAVIDsTEA (FRA:DAT) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.13, compared to a current price of €0.43 — trading 230.8% above its estimated fair value. The current Return-on-Tangible-Equity is 13.05% and 66% above the Consumer Packaged Goods industry median of 7.86. DAVIDsTEA's overall GF Score™ is 44/100 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 DAVIDsTEA (FRA:DAT), the current Return-on-Tangible-Equity is 13.05% as of Jan. 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 DAVIDsTEA (FRA:DAT) Overvalued in 2026?
Based on GuruFocus' analysis, DAVIDsTEA stock appears to be overvalued.
The current stock price of €0.43 is trading 230.8% above its estimated GF Value™ of €0.13.
GuruFocus considers DAVIDsTEA to be Significantly Overvalued.
Key valuation signals for FRA:DAT:
Return-on-Tangible-Equity: 13.05%
GF Value™: €0.13 vs. price of €0.43 (230.8% above fair value)
Industry Position: 66% above the Consumer Packaged Goods median (#610 of 1881)
No single metric tells the full story. See the FRA:DAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DAVIDsTEA Inc operates in Canada's packaged foods market. The company operates as a branded retailer of different types of tea, the company serves through DAVIDsTEA stores and its website, davidstea.com. Its business involves the sale of three main products: Tea, Tea Accessories, and Food and Beverages. Tea products such as loose-leaf teas, pre-packaged teas, tea sachets, tea-related accessories, and gifts through its e-commerce platform account for the majority of the company's sales. The company has two operating segments, Canada and the USA. Geographically, its key revenue-generating market is Canada.
44GF Score
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