The Marzetti CoFRA:LC1 -1.02%74 Return-on-Tangible-Equity is 18.28% as of Mar. 2026, which is 33% below its 10-year median of 27.41. GuruFocus rates FRA:LC1 with a GF Score™ of 74/100 and a GF Value™ of €158.46. The stock has 3 warning signs investors should review. Among 1,872 Consumer Packaged Goods companies, The Marzetti Co ranks better than 82.53% 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. The Marzetti Co's annualized net income for the quarter that ended in Mar. 2026 was €128 Mil. The Marzetti Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €701 Mil. Therefore, The Marzetti Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.28%.
The historical rank and industry rank for The Marzetti Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:LC1'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.18 Med: 27.41 Max: 34.88
Current: 22.11
During the past 13 years, The Marzetti Co's highest Return-on-Tangible-Equity was 34.88%. The lowest was 15.18%. And the median was 27.41%.
FRA:LC1's Return-on-Tangible-Equity is ranked better than 82.53% of 1872
companies
in the Consumer Packaged Goods industry
Industry Median: 7.73
vs FRA:LC1: 22.11
The Marzetti Co (FRA:LC1) 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.
The Marzetti Co Return-on-Tangible-Equity Related Terms
The Marzetti Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for The Marzetti Co'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:LC1 vs FRPT, CENT, POST: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, The Marzetti Co'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.
The Marzetti Co Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Marzetti Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The Marzetti Co'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 four times the quarterly (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 18.28% mean?
The Marzetti Co (FRA:LC1) has a Return-on-Tangible-Equity of 18.28% 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 The Marzetti Co and its competitors. This is 33% below median its historical median of 27.41. Over the past decade, The Marzetti Co's Return-on-Tangible-Equity has ranged from 15.18 to 34.88. According to the industry distribution chart, The Marzetti Co ranks #327 out of 1872 companies in the Consumer Packaged Goods industry, placing it in the top 17.5%.
Is The Marzetti Co's Return-on-Tangible-Equity too high?
The Marzetti Co's current Return-on-Tangible-Equity of 18.28% is 33% below median its 10-year median of 27.41. Over the past 10 years, this metric has ranged from a low of 15.18 to a high of 34.88. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.73. The Marzetti Co's value of 18.28% is 136.5% above this industry median. Based on the distribution chart, The Marzetti Co ranks #327 out of 1872 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, The Marzetti Co has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does The Marzetti Co's Return-on-Tangible-Equity compare to FRPT and CENT?
According to the Consumer Packaged Goods industry distribution chart, The Marzetti Co ranks #327 out of 1872 companies for Return-on-Tangible-Equity. This places The Marzetti Co in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.73. The Marzetti Co's value of 18.28% is 136.5% above this benchmark. Historically, The Marzetti Co's own Return-on-Tangible-Equity has ranged from 15.18 to 34.88 over the past decade. While the company's 10-year median is 27.41 vs. the industry median of 7.73, The Marzetti Co 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 Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.73, based on 1,872 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. The Marzetti Co's current Return-on-Tangible-Equity of 18.28% is 136.5% 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 The Marzetti Co and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Marzetti Co's current Return-on-Tangible-Equity is 18.28%, which is 33% below median its own 10-year median of 27.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Marzetti Co stock overvalued right now?
The Marzetti Co (FRA:LC1) has a current Return-on-Tangible-Equity of 18.28%. The stock's GF Value™ is €158.46, compared to a current price of €97.50 — trading 38.5% below its estimated fair value. The current Return-on-Tangible-Equity is 18.28%, which is 33% below median its 10-year median of 27.41 and 136.5% above the Consumer Packaged Goods industry median of 7.73. The Marzetti Co's overall GF Score™ is 74/100 with 3 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 The Marzetti Co (FRA:LC1), the current Return-on-Tangible-Equity is 18.28% 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 The Marzetti Co (FRA:LC1) Overvalued in 2026?
Based on GuruFocus' analysis, The Marzetti Co stock appears to be undervalued.
The current stock price of €97.50 is trading 38.5% below its estimated GF Value™ of €158.46.
Key valuation signals for FRA:LC1:
Return-on-Tangible-Equity: 18.28% (33% below median its 10-year median of 27.41)
GF Value™: €158.46 vs. price of €97.50 (38.5% below fair value)
Industry Position: 136.5% above the Consumer Packaged Goods median (#327 of 1872)
No single metric tells the full story. See the FRA:LC1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Marzetti Co manufactures and sells specialty food products. Its retail brands include Marzetti, New York Bakery and Sister Schubert's, in addition to exclusive license agreements for Olive Garden dressings, Chick-fil-A sauces and dressings, Buffalo Wild Wings sauces, Arby's sauces, Subway sauces, and Texas Roadhouse steak sauces and frozen rolls. Its foodservice business supplies many of the top restaurant chains in the United States with dressings, sauces, breads and frozen pastas. The company has two reportable segments: Retail and Foodservice, of which it derives maximum revenue from Retail segment.
74GF Score
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