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Zambia National Commercial BankLUS:ZNCO -0.21%71 Return-on-Tangible-Equity is 26.13% as of Mar. 2026, which is 25% below its 10-year median of 34.90. GuruFocus rates LUS:ZNCO with a GF Score™ of 71/100 and a GF Value™ of ZMW6.11 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,522 Banks companies, Zambia National Commercial Bank ranks better than 96.65% 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. Zambia National Commercial Bank's annualized net income for the quarter that ended in Mar. 2026 was ZMW1,749 Mil. Zambia National Commercial Bank's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ZMW6,693 Mil. Therefore, Zambia National Commercial Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 26.13%.
The historical rank and industry rank for Zambia National Commercial Bank's Return-on-Tangible-Equity or its related term are showing as below:
LUS:ZNCO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.37 Med: 34.9 Max: 75.5
Current: 31.7
During the past 9 years, Zambia National Commercial Bank's highest Return-on-Tangible-Equity was 75.50%. The lowest was 11.37%. And the median was 34.90%.
LUS:ZNCO's Return-on-Tangible-Equity is ranked better than 96.65% of 1522
companies
in the Banks industry
Industry Median: 11.395
vs LUS:ZNCO: 31.70
Zambia National Commercial Bank (LUS:ZNCO) 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.
Zambia National Commercial Bank Return-on-Tangible-Equity Related Terms
Zambia National Commercial Bank 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.
Zambia National Commercial Bank Return-on-Tangible-Equity Chart
LUS:ZNCO vs PNC, USB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Zambia National Commercial Bank'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.
Zambia National Commercial Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Zambia National Commercial Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zambia National Commercial Bank'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 26.13% mean?
Zambia National Commercial Bank (LUS:ZNCO) has a Return-on-Tangible-Equity of 26.13% 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 Zambia National Commercial Bank and its competitors. This is 25% below median its historical median of 34.90. Over the past decade, Zambia National Commercial Bank's Return-on-Tangible-Equity has ranged from 11.37 to 75.50. According to the industry distribution chart, Zambia National Commercial Bank ranks #51 out of 1522 companies in the Banks industry, placing it in the top 3.4%.
Is Zambia National Commercial Bank's Return-on-Tangible-Equity too high?
Zambia National Commercial Bank's current Return-on-Tangible-Equity of 26.13% is 25% below median its 10-year median of 34.90. Over the past 10 years, this metric has ranged from a low of 11.37 to a high of 75.50. The Banks industry median Return-on-Tangible-Equity is 11.40. Zambia National Commercial Bank's value of 26.13% is 129.3% above this industry median. Based on the distribution chart, Zambia National Commercial Bank ranks #51 out of 1522 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Zambia National Commercial Bank has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zambia National Commercial Bank's Return-on-Tangible-Equity compare to PNC and USB?
According to the Banks industry distribution chart, Zambia National Commercial Bank ranks #51 out of 1522 companies for Return-on-Tangible-Equity. This places Zambia National Commercial Bank in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.40. Zambia National Commercial Bank's value of 26.13% is 129.3% above this benchmark. Historically, Zambia National Commercial Bank's own Return-on-Tangible-Equity has ranged from 11.37 to 75.50 over the past decade. While the company's 10-year median is 34.90 vs. the industry median of 11.40, Zambia National Commercial Bank 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.40, based on 1,522 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. Zambia National Commercial Bank's current Return-on-Tangible-Equity of 26.13% is 129.3% 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 Zambia National Commercial Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zambia National Commercial Bank's current Return-on-Tangible-Equity is 26.13%, which is 25% below median its own 10-year median of 34.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zambia National Commercial Bank stock overvalued right now?
Based on GuruFocus' analysis, Zambia National Commercial Bank (LUS:ZNCO) is currently considered Significantly Overvalued. The stock's GF Value™ is ZMW6.11, compared to a current price of ZMW9.50 — trading 55.5% above its estimated fair value. The current Return-on-Tangible-Equity is 26.13%, which is 25% below median its 10-year median of 34.90 and 129.3% above the Banks industry median of 11.40. Zambia National Commercial Bank's overall GF Score™ is 71/100 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 Zambia National Commercial Bank (LUS:ZNCO), the current Return-on-Tangible-Equity is 26.13% 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 Zambia National Commercial Bank (LUS:ZNCO) Overvalued in 2026?
Based on GuruFocus' analysis, Zambia National Commercial Bank stock appears to be overvalued.
The current stock price of ZMW9.50 is trading 55.5% above its estimated GF Value™ of ZMW6.11.
GuruFocus considers Zambia National Commercial Bank to be Significantly Overvalued.
Key valuation signals for LUS:ZNCO:
Return-on-Tangible-Equity: 26.13% (25% below median its 10-year median of 34.90)
GF Value™: ZMW6.11 vs. price of ZMW9.50 (55.5% above fair value)
Industry Position: 129.3% above the Banks median (#51 of 1522)
No single metric tells the full story. See the LUS:ZNCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zambia National Commercial Bank PLC offers commercial banking services. Its principal activities include: the provision of retail, commercial Banking and related services to the general public, the provision of payment and technology solutions through the Digital Shared Services Limited (DSSL), and offering tailored insurance and risk advisory services. The company's segments include: Corporate Banking, Business Banking, Retail Banking, Digital Banking, and Treasury Management. The majority of revenue is derived from the Corporate banking segment, which provides corporate and investment banking solutions that incorporate direct debit facilities, deposit products, overdrafts, loans and other credit facilities and foreign currency solutions.
71GF Score
Get the complete analysis for LUS:ZNCO
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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