Shoprite HoldingsLUS:SHOP 100 Return-on-Tangible-Equity is 30.77% as of Dec. 2025, which is 15% above its 10-year median of 26.67. GuruFocus rates LUS:SHOP with a GF Score™ of 100/100 and a GF Value™ of ZMW380.96 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,056 Retail - Cyclical companies, Shoprite Holdings ranks better than 82.29% 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. Shoprite Holdings's annualized net income for the quarter that ended in Dec. 2025 was ZMW8,106 Mil. Shoprite Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2025 was ZMW26,345 Mil. Therefore, Shoprite Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 30.77%.
The historical rank and industry rank for Shoprite Holdings's Return-on-Tangible-Equity or its related term are showing as below:
LUS:SHOP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.29 Med: 26.67 Max: 31.88
Current: 31.75
During the past 13 years, Shoprite Holdings's highest Return-on-Tangible-Equity was 31.88%. The lowest was 17.29%. And the median was 26.67%.
LUS:SHOP's Return-on-Tangible-Equity is ranked better than 82.29% of 1056
companies
in the Retail - Cyclical industry
Industry Median: 8.275
vs LUS:SHOP: 31.75
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.
Shoprite Holdings Return-on-Tangible-Equity Related Terms
Shoprite Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Shoprite Holdings'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.
LUS:SHOP vs DDS, M: Return-on-Tangible-Equity Comparison
For the Department Stores subindustry, Shoprite Holdings'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.
Shoprite Holdings Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Shoprite Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Shoprite Holdings'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 30.77% mean?
Shoprite Holdings (LUS:SHOP) has a Return-on-Tangible-Equity of 30.77% 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 Shoprite Holdings and its competitors. This is 15% above median its historical median of 26.67. Over the past decade, Shoprite Holdings' Return-on-Tangible-Equity has ranged from 17.29 to 31.88. According to the industry distribution chart, Shoprite Holdings ranks #187 out of 1056 companies in the Retail - Cyclical industry, placing it in the top 17.7%.
Is Shoprite Holdings' Return-on-Tangible-Equity too high?
Shoprite Holdings' current Return-on-Tangible-Equity of 30.77% is 15% above median its 10-year median of 26.67. Over the past 10 years, this metric has ranged from a low of 17.29 to a high of 31.88. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.28. Shoprite Holdings' value of 30.77% is 271.8% above this industry median. Based on the distribution chart, Shoprite Holdings ranks #187 out of 1056 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Shoprite Holdings has a GF Score™ of 100/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shoprite Holdings' Return-on-Tangible-Equity compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Shoprite Holdings ranks #187 out of 1056 companies for Return-on-Tangible-Equity. This places Shoprite Holdings in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.28. Shoprite Holdings' value of 30.77% is 271.8% above this benchmark. Historically, Shoprite Holdings' own Return-on-Tangible-Equity has ranged from 17.29 to 31.88 over the past decade. While the company's 10-year median is 26.67 vs. the industry median of 8.28, Shoprite Holdings 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.28, 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. Shoprite Holdings's current Return-on-Tangible-Equity of 30.77% is 271.8% 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 Shoprite Holdings and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shoprite Holdings's current Return-on-Tangible-Equity is 30.77%, which is 15% above median its own 10-year median of 26.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shoprite Holdings stock overvalued right now?
Based on GuruFocus' analysis, Shoprite Holdings (LUS:SHOP) is currently considered Fairly Valued. The stock's GF Value™ is ZMW380.96, compared to a current price of ZMW350.00 — trading 8.1% below its estimated fair value. The current Return-on-Tangible-Equity is 30.77%, which is 15% above median its 10-year median of 26.67 and 271.8% above the Retail - Cyclical industry median of 8.28. Shoprite Holdings' overall GF Score™ is 100/100 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 Shoprite Holdings (LUS:SHOP), the current Return-on-Tangible-Equity is 30.77% 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 Shoprite Holdings (LUS:SHOP) Overvalued in 2026?
Based on GuruFocus' analysis, Shoprite Holdings stock appears to be undervalued.
The current stock price of ZMW350.00 is trading 8.1% below its estimated GF Value™ of ZMW380.96.
GuruFocus considers Shoprite Holdings to be Fairly Valued.
Key valuation signals for LUS:SHOP:
Return-on-Tangible-Equity: 30.77% (15% above median its 10-year median of 26.67)
GF Value™: ZMW380.96 vs. price of ZMW350.00 (8.1% below fair value)
Industry Position: 271.8% above the Retail - Cyclical median (#187 of 1056)
No single metric tells the full story. See the LUS:SHOP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shoprite Holdings Ltd is Africa's food retailer, headquartered in Cape Town, South Africa, with a widespread presence across multiple African countries. The company's main business is supermarket retailing through brands such as Shoprite, Usave, and Checkers. The company organizes its operations into three main segments: Supermarkets RSA, which covers its core supermarket retail operations in South Africa. The company segments include Supermarkets Non-RSA, covering supermarket operations in other African countries; and Other Operating Segments, which include franchise stores, pharmacies, pet products, clothing, and other specialist retail formats.
100GF Score
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