Zenith EnergyFRA:ZCL -6.37% Return-on-Tangible-Equity is -57.97% as of Mar. 2026. The stock has 6 warning signs investors should review. Among 947 Oil & Gas companies, Zenith Energy ranks worse than 85.53% 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. Zenith Energy's annualized net income for the quarter that ended in Mar. 2026 was €-29.87 Mil. Zenith Energy's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €51.53 Mil. Therefore, Zenith Energy's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -57.97%.
The historical rank and industry rank for Zenith Energy's Return-on-Tangible-Equity or its related term are showing as below:
FRA:ZCL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -200.83 Med: -1.69 Max: 197.88
Current: -26.29
During the past 13 years, Zenith Energy's highest Return-on-Tangible-Equity was 197.88%. The lowest was -200.83%. And the median was -1.69%.
FRA:ZCL's Return-on-Tangible-Equity is ranked worse than 85.53% of 947
companies
in the Oil & Gas industry
Industry Median: 6.74
vs FRA:ZCL: -26.29
Zenith Energy (FRA:ZCL) 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.
Zenith Energy Return-on-Tangible-Equity Related Terms
Zenith Energy Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zenith Energy'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:ZCL vs COP, EOG, FANG: Return-on-Tangible-Equity Comparison
For the Oil & Gas E&P subindustry, Zenith Energy'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.
Zenith Energy Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Zenith Energy's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zenith Energy'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 -57.97% mean?
Zenith Energy (FRA:ZCL) has a Return-on-Tangible-Equity of -57.97% 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 Zenith Energy and its competitors. According to the industry distribution chart, Zenith Energy ranks #810 out of 947 companies in the Oil & Gas industry, placing it in the top 85.5%.
Is Zenith Energy's Return-on-Tangible-Equity too high?
Zenith Energy's current Return-on-Tangible-Equity is -57.97%. Based on the distribution chart, Zenith Energy ranks #810 out of 947 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers.
How does Zenith Energy's Return-on-Tangible-Equity compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Zenith Energy ranks #810 out of 947 companies for Return-on-Tangible-Equity. This places Zenith Energy in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.74. 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 an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.74, based on 947 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 Zenith Energy and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zenith Energy's current Return-on-Tangible-Equity is -57.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenith Energy stock overvalued right now?
Based on GuruFocus' analysis, Zenith Energy (FRA:ZCL) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.02, compared to a current price of €0.04 — trading 113% above its estimated fair value. The current Return-on-Tangible-Equity is -57.97%. 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 Zenith Energy (FRA:ZCL), the current Return-on-Tangible-Equity is -57.97% 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.
Zenith Energy Ltd is an international independent oil and gas company with production, exploration, and development assets in the Republic of the Congo, Italy, and Tunisia. The company's strategic focus is the development of revenue-generating oil production assets, as well as low-risk exploration activities in assets with existing production. Its segments are Italy, Tunisia and Others.
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