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Colonial Motor CoNZSE:CMO -0.69%65 Return-on-Tangible-Equity is 6.75% as of Dec. 2025, which is 0% above its 10-year median of 6.73. GuruFocus rates NZSE:CMO with a GF Score™ of 65/100 and a GF Value™ of NZ$8.56 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,282 Vehicles & Parts companies, Colonial Motor Co ranks worse than 51.79% 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. Colonial Motor Co's annualized net income for the quarter that ended in Dec. 2025 was NZ$21 Mil. Colonial Motor Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NZ$309 Mil. Therefore, Colonial Motor Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 6.75%.
The historical rank and industry rank for Colonial Motor Co's Return-on-Tangible-Equity or its related term are showing as below:
NZSE:CMO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.77 Med: 6.73 Max: 8.23
Current: 7.15
During the past 13 years, Colonial Motor Co's highest Return-on-Tangible-Equity was 8.23%. The lowest was 0.77%. And the median was 6.73%.
NZSE:CMO's Return-on-Tangible-Equity is ranked worse than 51.79% of 1282
companies
in the Vehicles & Parts industry
Industry Median: 7.545
vs NZSE:CMO: 7.15
Colonial Motor Co (NZSE:CMO) 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.
Colonial Motor Co Return-on-Tangible-Equity Related Terms
Colonial Motor Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Colonial Motor Co'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.
NZSE:CMO vs CVNA, PAG, ALTB: Return-on-Tangible-Equity Comparison
For the Auto & Truck Dealerships subindustry, Colonial Motor Co'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.
Colonial Motor Co Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Colonial Motor Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Colonial Motor Co'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 6.75% mean?
Colonial Motor Co (NZSE:CMO) has a Return-on-Tangible-Equity of 6.75% 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 Colonial Motor Co and its competitors. This is near median its historical median of 6.73. Over the past decade, Colonial Motor Co's Return-on-Tangible-Equity has ranged from 0.77 to 8.23. According to the industry distribution chart, Colonial Motor Co ranks #664 out of 1282 companies in the Vehicles & Parts industry, placing it in the top 51.8%.
Is Colonial Motor Co's Return-on-Tangible-Equity too high?
Colonial Motor Co's current Return-on-Tangible-Equity of 6.75% is near median its 10-year median of 6.73. Over the past 10 years, this metric has ranged from a low of 0.77 to a high of 8.23. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.55. Colonial Motor Co's value of 6.75% is 10.5% below this industry median. Based on the distribution chart, Colonial Motor Co ranks #664 out of 1282 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Colonial Motor Co has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Colonial Motor Co's Return-on-Tangible-Equity compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Colonial Motor Co ranks #664 out of 1282 companies for Return-on-Tangible-Equity. This places Colonial Motor Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.55. Colonial Motor Co's value of 6.75% is 10.5% below this benchmark. Historically, Colonial Motor Co's own Return-on-Tangible-Equity has ranged from 0.77 to 8.23 over the past decade. While the company's 10-year median is 6.73 vs. the industry median of 7.55, Colonial Motor Co has consistently been below 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.55, based on 1,282 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. Colonial Motor Co's current Return-on-Tangible-Equity of 6.75% is 10.5% below 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 Colonial Motor Co and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Colonial Motor Co's current Return-on-Tangible-Equity is 6.75%, which is near median its own 10-year median of 6.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Colonial Motor Co stock overvalued right now?
Based on GuruFocus' analysis, Colonial Motor Co (NZSE:CMO) is currently considered Modestly Undervalued. The stock's GF Value™ is NZ$8.56, compared to a current price of NZ$7.17 — trading 16.2% below its estimated fair value. The current Return-on-Tangible-Equity is 6.75%, which is near median its 10-year median of 6.73 and 10.5% below the Vehicles & Parts industry median of 7.55. Colonial Motor Co's overall GF Score™ is 65/100 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 Colonial Motor Co (NZSE:CMO), the current Return-on-Tangible-Equity is 6.75% 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 Colonial Motor Co (NZSE:CMO) Overvalued in 2026?
Based on GuruFocus' analysis, Colonial Motor Co stock appears to be undervalued.
The current stock price of NZ$7.17 is trading 16.2% below its estimated GF Value™ of NZ$8.56.
GuruFocus considers Colonial Motor Co to be Modestly Undervalued.
Key valuation signals for NZSE:CMO:
Return-on-Tangible-Equity: 6.75% (near median its 10-year median of 6.73)
GF Value™: NZ$8.56 vs. price of NZ$7.17 (16.2% below fair value)
Industry Position: 10.5% below the Vehicles & Parts median (#664 of 1282)
No single metric tells the full story. See the NZSE:CMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Colonial Motor Co Ltd is a New Zealand-based company engaged in the principal activity of operating franchised motor vehicle dealerships. It owns motor vehicle dealerships throughout the country and has dealerships selling heavy trucks and tractors. The company has many dealerships and has a primary focus on Ford. Also, the company provides administrative and financial services to the subsidiaries as well as leasing them at market rates for many of the properties. Substantial revenue is generated from the sale of goods.
65GF Score
Get the complete analysis for NZSE:CMO
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