Nongfu Spring CoHAM:7NF +1.76%98 Return-on-Tangible-Equity is 46.81% as of Dec. 2025, which is 16% above its 10-year median of 40.21. GuruFocus rates HAM:7NF with a GF Score™ of 98/100 and a GF Value™ of €6.73. The stock has 2 warning signs investors should review. Among 109 Beverages - Non-Alcoholic companies, Nongfu Spring Co ranks better than 84.4% 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. Nongfu Spring Co's annualized net income for the quarter that ended in Dec. 2025 was €2,000 Mil. Nongfu Spring Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €4,272 Mil. Therefore, Nongfu Spring Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 46.81%.
The historical rank and industry rank for Nongfu Spring Co's Return-on-Tangible-Equity or its related term are showing as below:
HAM:7NF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 29.06 Med: 40.21 Max: 46.71
Current: 46.71
During the past 9 years, Nongfu Spring Co's highest Return-on-Tangible-Equity was 46.71%. The lowest was 29.06%. And the median was 40.21%.
HAM:7NF's Return-on-Tangible-Equity is ranked better than 84.4% of 109
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 13.73
vs HAM:7NF: 46.71
Nongfu Spring Co (HAM:7NF) 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.
Nongfu Spring Co Return-on-Tangible-Equity Related Terms
Nongfu Spring Co Return-on-Tangible-Equity Historical Data
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The historical data trend for Nongfu Spring 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.
HAM:7NF vs KO, PEP, MNST: Return-on-Tangible-Equity Comparison
For the Beverages - Non-Alcoholic subindustry, Nongfu Spring 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.
Nongfu Spring Co Return-on-Tangible-Equity vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Nongfu Spring Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nongfu Spring 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 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 46.81% mean?
Nongfu Spring Co (HAM:7NF) has a Return-on-Tangible-Equity of 46.81% 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 Nongfu Spring Co and its competitors. This is 16% above median its historical median of 40.21. Over the past decade, Nongfu Spring Co's Return-on-Tangible-Equity has ranged from 29.06 to 46.71. According to the industry distribution chart, Nongfu Spring Co ranks #17 out of 109 companies in the Beverages - Non-Alcoholic industry, placing it in the top 15.6%.
Is Nongfu Spring Co's Return-on-Tangible-Equity too high?
Nongfu Spring Co's current Return-on-Tangible-Equity of 46.81% is 16% above median its 10-year median of 40.21. Over the past 10 years, this metric has ranged from a low of 29.06 to a high of 46.71. The Beverages - Non-Alcoholic industry median Return-on-Tangible-Equity is 13.73. Nongfu Spring Co's value of 46.81% is 240.9% above this industry median. Based on the distribution chart, Nongfu Spring Co ranks #17 out of 109 companies in the Beverages - Non-Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Nongfu Spring Co has a GF Score™ of 98/100, reflecting its overall financial health beyond just this single metric.
How does Nongfu Spring Co's Return-on-Tangible-Equity compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, Nongfu Spring Co ranks #17 out of 109 companies for Return-on-Tangible-Equity. This places Nongfu Spring Co in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 13.73. Nongfu Spring Co's value of 46.81% is 240.9% above this benchmark. Historically, Nongfu Spring Co's own Return-on-Tangible-Equity has ranged from 29.06 to 46.71 over the past decade. While the company's 10-year median is 40.21 vs. the industry median of 13.73, Nongfu Spring 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 Beverages - Non-Alcoholic company?
The median Return-on-Tangible-Equity among Beverages - Non-Alcoholic companies is 13.73, based on 109 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. Nongfu Spring Co's current Return-on-Tangible-Equity of 46.81% is 240.9% 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 Nongfu Spring Co and its competitors. For the Beverages - Non-Alcoholic industry, the median Return-on-Tangible-Equity is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nongfu Spring Co's current Return-on-Tangible-Equity is 46.81%, which is 16% above median its own 10-year median of 40.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nongfu Spring Co stock overvalued right now?
Nongfu Spring Co (HAM:7NF) has a current Return-on-Tangible-Equity of 46.81%. The stock's GF Value™ is €6.73, compared to a current price of €4.57 — trading 32.1% below its estimated fair value. The current Return-on-Tangible-Equity is 46.81%, which is 16% above median its 10-year median of 40.21 and 240.9% above the Beverages - Non-Alcoholic industry median of 13.73. Nongfu Spring Co's overall GF Score™ is 98/100 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 Nongfu Spring Co (HAM:7NF), the current Return-on-Tangible-Equity is 46.81% 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 Nongfu Spring Co (HAM:7NF) Overvalued in 2026?
Based on GuruFocus' analysis, Nongfu Spring Co stock appears to be undervalued.
The current stock price of €4.57 is trading 32.1% below its estimated GF Value™ of €6.73.
Key valuation signals for HAM:7NF:
Return-on-Tangible-Equity: 46.81% (16% above median its 10-year median of 40.21)
GF Value™: €6.73 vs. price of €4.57 (32.1% below fair value)
Industry Position: 240.9% above the Beverages - Non-Alcoholic median (#17 of 109)
No single metric tells the full story. See the HAM:7NF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1996, Nongfu Spring is a leading beverage producer with products primarily in the packaged water, ready-to-drink tea, juice, coffee, and functional beverages sectors in China. It holds the number-one share in the bottled water market; this segment contributed approximately 40% of the firm's revenue and EBIT in 2024.
98GF Score
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