Rainbow Chicken (JSE:RBO) Return-on-Tangible-Equity: 27.96% (As of Dec. 2025) — 589% Above Median


JSE:RBO Rainbow Chicken Ltd JSE:RBO
12 GF Score
Price R5.75
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What is Rainbow Chicken Return-on-Tangible-Equity?

Rainbow Chicken JSE:RBO -1.54% 12 Return-on-Tangible-Equity is 27.96% as of Dec. 2025, which is 589% above its 10-year median of 4.06. GuruFocus rates JSE:RBO with a GF Score™ of 12/100. Among 1,878 Consumer Packaged Goods companies, Rainbow Chicken ranks better than 79.77% 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. Rainbow Chicken's annualized net income for the quarter that ended in Dec. 2025 was R1,339 Mil. Rainbow Chicken's average shareholder tangible equity for the quarter that ended in Dec. 2025 was R4,789 Mil. Therefore, Rainbow Chicken's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 27.96%.

The historical rank and industry rank for Rainbow Chicken's Return-on-Tangible-Equity or its related term are showing as below:

JSE:RBO' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -34.12   Med: 4.06   Max: 19.94
Current: 19.94

During the past 5 years, Rainbow Chicken's highest Return-on-Tangible-Equity was 19.94%. The lowest was -34.12%. And the median was 4.06%.

JSE:RBO's Return-on-Tangible-Equity is ranked better than
79.77% of 1878 companies
in the Consumer Packaged Goods industry
Industry Median: 7.78 vs JSE:RBO: 19.94

Rainbow Chicken  (JSE:RBO) 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.


Rainbow Chicken Return-on-Tangible-Equity Related Terms


Rainbow Chicken Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Rainbow Chicken'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.

Rainbow Chicken Return-on-Tangible-Equity Chart

Rainbow Chicken Annual Data
Trend Jun21 Jun22 Jun23 Jun24 Jun25
Return-on-Tangible-Equity
-17.37 4.06 -34.12 7.84 13.42

Rainbow Chicken Semi-Annual Data
Jun21 Jun22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Return-on-Tangible-Equity Get a 7-Day Free Trial 1.87 8.14 15.31 11.47 27.96

JSE:RBO vs KHC, GIS, HRL: Return-on-Tangible-Equity Comparison

For the Packaged Foods subindustry, Rainbow Chicken'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.


Rainbow Chicken Return-on-Tangible-Equity vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Rainbow Chicken's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Rainbow Chicken's Return-on-Tangible-Equity falls into.


JSE:RBO
12GF Score
Rainbow Chicken Ltd JSE:RBO
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
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Rainbow Chicken Return-on-Tangible-Equity Calculation

Rainbow Chicken's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jun. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=571.163/( (3965.836+4548.033 )/ 2 )
=571.163/4256.9345
=13.42 %

Rainbow Chicken's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=1338.914/( (4548.033+5030.204)/ 2 )
=1338.914/4789.1185
=27.96 %

* 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 27.96% mean?
Rainbow Chicken (JSE:RBO) has a Return-on-Tangible-Equity of 27.96% 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 Rainbow Chicken and its competitors. This is 589% above median its historical median of 4.06. According to the industry distribution chart, Rainbow Chicken ranks #380 out of 1878 companies in the Consumer Packaged Goods industry, placing it in the top 20.2%.
Is Rainbow Chicken's Return-on-Tangible-Equity too high?
Rainbow Chicken's current Return-on-Tangible-Equity of 27.96% is 589% above median its 10-year median of 4.06. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.78. Rainbow Chicken's value of 27.96% is 259.4% above this industry median. Based on the distribution chart, Rainbow Chicken ranks #380 out of 1878 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Rainbow Chicken has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Rainbow Chicken's Return-on-Tangible-Equity compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Rainbow Chicken ranks #380 out of 1878 companies for Return-on-Tangible-Equity. This places Rainbow Chicken in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.78. Rainbow Chicken's value of 27.96% is 259.4% above this benchmark. While the company's 10-year median is 4.06 vs. the industry median of 7.78, Rainbow Chicken 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 7.78, based on 1,878 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. Rainbow Chicken's current Return-on-Tangible-Equity of 27.96% is 259.4% 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 Rainbow Chicken and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rainbow Chicken's current Return-on-Tangible-Equity is 27.96%, which is 589% above median its own 10-year median of 4.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rainbow Chicken stock overvalued right now?
Rainbow Chicken (JSE:RBO) has a current Return-on-Tangible-Equity of 27.96%. The current Return-on-Tangible-Equity is 27.96%, which is 589% above median its 10-year median of 4.06 and 259.4% above the Consumer Packaged Goods industry median of 7.78. Rainbow Chicken's overall GF Score™ is 12/100. 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 Rainbow Chicken (JSE:RBO), the current Return-on-Tangible-Equity is 27.96% 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.

Rainbow Chicken Business Description

Address Cnr John Vorster and Nellmapius Drive, Southdowns Ridge Office Park Suite 12, Centurion, Irene, GT, ZAF, 3701
Rainbow Chicken Ltd is a fully integrated broiler producing company involved in all stages of chicken production from farm to fork. It is a trusted South African heritage brand that consumers have come to rely on for quality chicken products. Its diverse product offering includes the following product sets: Fresh Chicken, Standard Chicken, Frozen Specialized Chicken, Chilled process meat. It segments includes Chicken, Animal Feed (consisting of Epol and Driehoek), Waste-to-Value (consisting of Matzonox and Matzonox Fertilisers), Group (other immaterial segments). Maximum of revenue is from Chicken Segment.
12GF Score

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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R5.75
Price