Zalando SEHAM:ZAL +0.22%84 Return-on-Tangible-Equity is -31.66% as of Mar. 2026. GuruFocus rates HAM:ZAL with a GF Score™ of 84/100 and a GF Value™ of €33.11 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,056 Retail - Cyclical companies, Zalando SE ranks worse than 53.6% 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. Zalando SE's annualized net income for the quarter that ended in Mar. 2026 was €-350 Mil. Zalando SE's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €1,107 Mil. Therefore, Zalando SE's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -31.66%.
The historical rank and industry rank for Zalando SE's Return-on-Tangible-Equity or its related term are showing as below:
HAM:ZAL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.9 Med: 8.64 Max: 13.28
Current: 7.26
During the past 13 years, Zalando SE's highest Return-on-Tangible-Equity was 13.28%. The lowest was 0.90%. And the median was 8.64%.
HAM:ZAL's Return-on-Tangible-Equity is ranked worse than 53.6% of 1056
companies
in the Retail - Cyclical industry
Industry Median: 8.295
vs HAM:ZAL: 7.26
Zalando SE (HAM:ZAL) 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.
Zalando SE Return-on-Tangible-Equity Related Terms
Zalando SE Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zalando SE'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:ZAL vs AMZN, BABA, PDD: Return-on-Tangible-Equity Comparison
For the Internet Retail subindustry, Zalando SE'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.
Zalando SE Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Zalando SE's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zalando SE'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 -31.66% mean?
Zalando SE (HAM:ZAL) has a Return-on-Tangible-Equity of -31.66% 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 Zalando SE and its competitors. Over the past decade, Zalando SE's Return-on-Tangible-Equity has ranged from 0.90 to 13.28. According to the industry distribution chart, Zalando SE ranks #566 out of 1056 companies in the Retail - Cyclical industry, placing it in the top 53.6%.
Is Zalando SE's Return-on-Tangible-Equity too high?
Zalando SE's current Return-on-Tangible-Equity is -31.66%. Over the past 10 years, this metric has ranged from a low of 0.90 to a high of 13.28. Based on the distribution chart, Zalando SE ranks #566 out of 1056 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Zalando SE has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zalando SE's Return-on-Tangible-Equity compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Zalando SE ranks #566 out of 1056 companies for Return-on-Tangible-Equity. This places Zalando SE in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.30. Historically, Zalando SE's own Return-on-Tangible-Equity has ranged from 0.90 to 13.28 over the past decade. 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.30, based on 1,056 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 Zalando SE and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zalando SE's current Return-on-Tangible-Equity is -31.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zalando SE stock overvalued right now?
Based on GuruFocus' analysis, Zalando SE (HAM:ZAL) is currently considered Modestly Undervalued. The stock's GF Value™ is €33.11, compared to a current price of €27.50 — trading 16.9% below its estimated fair value. The current Return-on-Tangible-Equity is -31.66%. Zalando SE's overall GF Score™ is 84/100 with 8 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 Zalando SE (HAM:ZAL), the current Return-on-Tangible-Equity is -31.66% 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 Zalando SE (HAM:ZAL) Overvalued in 2026?
Based on GuruFocus' analysis, Zalando SE stock appears to be undervalued.
The current stock price of €27.50 is trading 16.9% below its estimated GF Value™ of €33.11.
GuruFocus considers Zalando SE to be Modestly Undervalued.
Key valuation signals for HAM:ZAL:
Return-on-Tangible-Equity: -31.66%
GF Value™: €33.11 vs. price of €27.50 (16.9% below fair value)
No single metric tells the full story. See the HAM:ZAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zalando, founded in 2008, is Europe's biggest pure-play online fashion platform. Zalando is present in 25 European countries, and its major market is the DACH region, comprising Germany, Austria, and Switzerland. After the About You acquisition, it has 17 fulfillment centers, offers over 7,000 brands, and as of September 2025, had 62 million active users (more than 10% of the population in countries where the firm has a presence).
84GF Score
Get the complete analysis for HAM:ZAL
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HAM:ZAL has been successfully added to your 
