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East African BreweriesNAI:EABL -0.27%87 Return-on-Tangible-Equity is 80.45% as of Dec. 2025, which is 27% below its 10-year median of 110.41. GuruFocus rates NAI:EABL with a GF Score™ of 87/100 and a GF Value™ of KES320.92 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 201 Beverages - Alcoholic companies, East African Breweries ranks better than 87.06% 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. East African Breweries's annualized net income for the quarter that ended in Dec. 2025 was KES22,324 Mil. East African Breweries's average shareholder tangible equity for the quarter that ended in Dec. 2025 was KES27,749 Mil. Therefore, East African Breweries's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 80.45%.
The historical rank and industry rank for East African Breweries's Return-on-Tangible-Equity or its related term are showing as below:
NAI:EABL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 44.35 Med: 110.41 Max: 258.18
Current: 45.94
During the past 13 years, East African Breweries's highest Return-on-Tangible-Equity was 258.18%. The lowest was 44.35%. And the median was 110.41%.
NAI:EABL's Return-on-Tangible-Equity is ranked better than 87.06% of 201
companies
in the Beverages - Alcoholic industry
Industry Median: 8.47
vs NAI:EABL: 45.94
East African Breweries (NAI:EABL) 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.
East African Breweries Return-on-Tangible-Equity Related Terms
East African Breweries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for East African Breweries'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.
East African Breweries Return-on-Tangible-Equity Chart
NAI:EABL vs STZ, TAP: Return-on-Tangible-Equity Comparison
For the Beverages - Brewers subindustry, East African Breweries'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.
East African Breweries Return-on-Tangible-Equity vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, East African Breweries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where East African Breweries'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 80.45% mean?
East African Breweries (NAI:EABL) has a Return-on-Tangible-Equity of 80.45% 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 East African Breweries and its competitors. This is 27% below median its historical median of 110.41. Over the past decade, East African Breweries' Return-on-Tangible-Equity has ranged from 44.35 to 258.18. According to the industry distribution chart, East African Breweries ranks #26 out of 201 companies in the Beverages - Alcoholic industry, placing it in the top 12.9%.
Is East African Breweries' Return-on-Tangible-Equity too high?
East African Breweries' current Return-on-Tangible-Equity of 80.45% is 27% below median its 10-year median of 110.41. Over the past 10 years, this metric has ranged from a low of 44.35 to a high of 258.18. The Beverages - Alcoholic industry median Return-on-Tangible-Equity is 8.47. East African Breweries' value of 80.45% is 849.8% above this industry median. Based on the distribution chart, East African Breweries ranks #26 out of 201 companies in the Beverages - Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, East African Breweries has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does East African Breweries' Return-on-Tangible-Equity compare to STZ and TAP?
According to the Beverages - Alcoholic industry distribution chart, East African Breweries ranks #26 out of 201 companies for Return-on-Tangible-Equity. This places East African Breweries in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.47. East African Breweries' value of 80.45% is 849.8% above this benchmark. Historically, East African Breweries' own Return-on-Tangible-Equity has ranged from 44.35 to 258.18 over the past decade. While the company's 10-year median is 110.41 vs. the industry median of 8.47, East African Breweries 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 - Alcoholic company?
The median Return-on-Tangible-Equity among Beverages - Alcoholic companies is 8.47, based on 201 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. East African Breweries's current Return-on-Tangible-Equity of 80.45% is 849.8% 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 East African Breweries and its competitors. For the Beverages - Alcoholic industry, the median Return-on-Tangible-Equity is 8.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. East African Breweries's current Return-on-Tangible-Equity is 80.45%, which is 27% below median its own 10-year median of 110.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is East African Breweries stock overvalued right now?
Based on GuruFocus' analysis, East African Breweries (NAI:EABL) is currently considered Modestly Undervalued. The stock's GF Value™ is KES320.92, compared to a current price of KES274.25 — trading 14.5% below its estimated fair value. The current Return-on-Tangible-Equity is 80.45%, which is 27% below median its 10-year median of 110.41 and 849.8% above the Beverages - Alcoholic industry median of 8.47. East African Breweries' overall GF Score™ is 87/100 with 4 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 East African Breweries (NAI:EABL), the current Return-on-Tangible-Equity is 80.45% 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 East African Breweries (NAI:EABL) Overvalued in 2026?
Based on GuruFocus' analysis, East African Breweries stock appears to be undervalued.
The current stock price of KES274.25 is trading 14.5% below its estimated GF Value™ of KES320.92.
GuruFocus considers East African Breweries to be Modestly Undervalued.
Key valuation signals for NAI:EABL:
Return-on-Tangible-Equity: 80.45% (27% below median its 10-year median of 110.41)
GF Value™: KES320.92 vs. price of KES274.25 (14.5% below fair value)
Industry Position: 849.8% above the Beverages - Alcoholic median (#26 of 201)
No single metric tells the full story. See the NAI:EABL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
East African Breweries PLC is a branded alcohol beverage company. The firm and its subsidiaries are involved in the marketing, production, and distribution of a collection of brands that range from beer, spirits, and adult non-alcoholic drinks. The company has invested in breweries, distilleries, support industries, and a distribution network across the region. The firm derives its revenue mainly from brewing, marketing, and selling of drinks, malt, and barley. Its geographical segments include Kenya, Uganda, and Tanzania, of which the majority of the revenue is generated from Kenya.
87GF Score
Get the complete analysis for NAI:EABL
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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