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First Watch Restaurant GroupFWRG -2.44%75 Return-on-Tangible-Equity is 23.97% as of Jun. 2026, which is 55% below its 10-year median of 53.69. GuruFocus rates FWRG with a GF Score™ of 75/100 and a GF Value™ of $22.39 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 331 Restaurants companies, First Watch Restaurant Group ranks better than 84.59% 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. First Watch Restaurant Group's annualized net income for the quarter that ended in Jun. 2026 was $9 Mil. First Watch Restaurant Group's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $39 Mil. Therefore, First Watch Restaurant Group's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 23.97%.
The historical rank and industry rank for First Watch Restaurant Group's Return-on-Tangible-Equity or its related term are showing as below:
FWRG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 27.1 Med: 53.69 Max: 73.55
Current: 73.55
During the past 7 years, First Watch Restaurant Group's highest Return-on-Tangible-Equity was 73.55%. The lowest was 27.10%. And the median was 53.69%.
FWRG's Return-on-Tangible-Equity is ranked better than 84.59% of 331
companies
in the Restaurants industry
Industry Median: 9.46
vs FWRG: 73.55
First Watch Restaurant Group (NAS:FWRG) 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.
First Watch Restaurant Group Return-on-Tangible-Equity Related Terms
First Watch Restaurant 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.
First Watch Restaurant Group Return-on-Tangible-Equity Chart
FWRG vs SG, BLMN, CNNE: Return-on-Tangible-Equity Comparison
For the Restaurants subindustry, First Watch Restaurant 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.
First Watch Restaurant Group Return-on-Tangible-Equity vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, First Watch Restaurant Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where First Watch Restaurant 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 four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 23.97% mean?
First Watch Restaurant Group (FWRG) has a Return-on-Tangible-Equity of 23.97% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on First Watch Restaurant Group and its competitors. This is 55% below median its historical median of 53.69. Over the past decade, First Watch Restaurant Group's Return-on-Tangible-Equity has ranged from 27.10 to 73.55. According to the industry distribution chart, First Watch Restaurant Group ranks #51 out of 331 companies in the Restaurants industry, placing it in the top 15.4%.
Is First Watch Restaurant Group's Return-on-Tangible-Equity too high?
First Watch Restaurant Group's current Return-on-Tangible-Equity of 23.97% is 55% below median its 10-year median of 53.69. Over the past 10 years, this metric has ranged from a low of 27.10 to a high of 73.55. The Restaurants industry median Return-on-Tangible-Equity is 9.46. First Watch Restaurant Group's value of 23.97% is 153.4% above this industry median. Based on the distribution chart, First Watch Restaurant Group ranks #51 out of 331 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, First Watch Restaurant Group has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does First Watch Restaurant Group's Return-on-Tangible-Equity compare to SG and BLMN?
According to the Restaurants industry distribution chart, First Watch Restaurant Group ranks #51 out of 331 companies for Return-on-Tangible-Equity. This places First Watch Restaurant Group in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.46. First Watch Restaurant Group's value of 23.97% is 153.4% above this benchmark. Historically, First Watch Restaurant Group's own Return-on-Tangible-Equity has ranged from 27.10 to 73.55 over the past decade. While the company's 10-year median is 53.69 vs. the industry median of 9.46, First Watch Restaurant 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 Restaurants company?
The median Return-on-Tangible-Equity among Restaurants companies is 9.46, based on 331 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. First Watch Restaurant Group's current Return-on-Tangible-Equity of 23.97% is 153.4% 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 First Watch Restaurant Group and its competitors. For the Restaurants industry, the median Return-on-Tangible-Equity is 9.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Watch Restaurant Group's current Return-on-Tangible-Equity is 23.97%, which is 55% below median its own 10-year median of 53.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Watch Restaurant Group stock overvalued right now?
Based on GuruFocus' analysis, First Watch Restaurant Group (FWRG) is currently considered Possible Value Trap. The stock's GF Value™ is $22.39, compared to a current price of $12.01 — trading 46.4% below its estimated fair value. The current Return-on-Tangible-Equity is 23.97%, which is 55% below median its 10-year median of 53.69 and 153.4% above the Restaurants industry median of 9.46. First Watch Restaurant Group's overall GF Score™ is 75/100 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 First Watch Restaurant Group (FWRG), the current Return-on-Tangible-Equity is 23.97% as of Jun. 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 First Watch Restaurant Group (FWRG) Overvalued in 2026?
Based on GuruFocus' analysis, First Watch Restaurant Group stock appears to be undervalued.
The current stock price of $12.01 is trading 46.4% below its estimated GF Value™ of $22.39.
GuruFocus considers First Watch Restaurant Group to be Possible Value Trap.
Key valuation signals for FWRG:
Return-on-Tangible-Equity: 23.97% (55% below median its 10-year median of 53.69)
GF Value™: $22.39 vs. price of $12.01 (46.4% below fair value)
Industry Position: 153.4% above the Restaurants median (#51 of 331)
No single metric tells the full story. See the FWRG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Watch Restaurant Group Inc is a daytime restaurant concept serving made-to-order breakfast, brunch, and lunch using fresh ingredients. The company generates revenues from Restaurant sales and Franchise revenues. It generates maximum revenue from Restaurant sales.
75GF Score
Get the complete analysis for FWRG
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