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Fonterra Co-operative GroupNZSE:FCG +0.48%67 Return-on-Tangible-Equity is 19.55% as of Jan. 2026, which is 16% above its 10-year median of 16.86. GuruFocus rates NZSE:FCG with a GF Score™ of 67/100 and a GF Value™ of NZ$2.96 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,878 Consumer Packaged Goods companies, Fonterra Co-operative Group ranks better than 72.36% 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. Fonterra Co-operative Group's annualized net income for the quarter that ended in Jan. 2026 was NZ$1,500 Mil. Fonterra Co-operative Group's average shareholder tangible equity for the quarter that ended in Jan. 2026 was NZ$7,673 Mil. Therefore, Fonterra Co-operative Group's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2026 was 19.55%.
The historical rank and industry rank for Fonterra Co-operative Group's Return-on-Tangible-Equity or its related term are showing as below:
NZSE:FCG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -18.27 Med: 16.86 Max: 29.04
Current: 15.37
During the past 13 years, Fonterra Co-operative Group's highest Return-on-Tangible-Equity was 29.04%. The lowest was -18.27%. And the median was 16.86%.
NZSE:FCG's Return-on-Tangible-Equity is ranked better than 72.36% of 1878
companies
in the Consumer Packaged Goods industry
Industry Median: 7.78
vs NZSE:FCG: 15.37
Fonterra Co-operative Group (NZSE:FCG) 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.
Fonterra Co-operative Group Return-on-Tangible-Equity Related Terms
Fonterra Co-operative Group 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.
Fonterra Co-operative Group Return-on-Tangible-Equity Chart
NZSE:FCG vs KHC, GIS, HRL: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Fonterra Co-operative Group'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.
Fonterra Co-operative Group Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Fonterra Co-operative Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Fonterra Co-operative Group'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 (Jan. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 19.55% mean?
Fonterra Co-operative Group (NZSE:FCG) has a Return-on-Tangible-Equity of 19.55% as of Jan. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Fonterra Co-operative Group and its competitors. This is 16% above median its historical median of 16.86. According to the industry distribution chart, Fonterra Co-operative Group ranks #519 out of 1878 companies in the Consumer Packaged Goods industry, placing it in the top 27.6%.
Is Fonterra Co-operative Group's Return-on-Tangible-Equity too high?
Fonterra Co-operative Group's current Return-on-Tangible-Equity of 19.55% is 16% above median its 10-year median of 16.86. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.78. Fonterra Co-operative Group's value of 19.55% is 151.3% above this industry median. Based on the distribution chart, Fonterra Co-operative Group ranks #519 out of 1878 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Fonterra Co-operative Group has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fonterra Co-operative Group's Return-on-Tangible-Equity compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Fonterra Co-operative Group ranks #519 out of 1878 companies for Return-on-Tangible-Equity. This puts Fonterra Co-operative Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.78. Fonterra Co-operative Group's value of 19.55% is 151.3% above this benchmark. While the company's 10-year median is 16.86 vs. the industry median of 7.78, Fonterra Co-operative Group 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. Fonterra Co-operative Group's current Return-on-Tangible-Equity of 19.55% is 151.3% 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 Fonterra Co-operative Group 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. Fonterra Co-operative Group's current Return-on-Tangible-Equity is 19.55%, which is 16% above median its own 10-year median of 16.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fonterra Co-operative Group stock overvalued right now?
Based on GuruFocus' analysis, Fonterra Co-operative Group (NZSE:FCG) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$2.96, compared to a current price of NZ$4.22 — trading 42.6% above its estimated fair value. The current Return-on-Tangible-Equity is 19.55%, which is 16% above median its 10-year median of 16.86 and 151.3% above the Consumer Packaged Goods industry median of 7.78. Fonterra Co-operative Group's overall GF Score™ is 67/100 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 Fonterra Co-operative Group (NZSE:FCG), the current Return-on-Tangible-Equity is 19.55% as of Jan. 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 Fonterra Co-operative Group (NZSE:FCG) Overvalued in 2026?
Based on GuruFocus' analysis, Fonterra Co-operative Group stock appears to be overvalued.
The current stock price of NZ$4.22 is trading 42.6% above its estimated GF Value™ of NZ$2.96.
GuruFocus considers Fonterra Co-operative Group to be Significantly Overvalued.
Key valuation signals for NZSE:FCG:
Return-on-Tangible-Equity: 19.55% (16% above median its 10-year median of 16.86)
GF Value™: NZ$2.96 vs. price of NZ$4.22 (42.6% above fair value)
Industry Position: 151.3% above the Consumer Packaged Goods median (#519 of 1878)
No single metric tells the full story. See the NZSE:FCG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets is Asia, China, Australia, New Zealand, the United States, and the Rest of the world.
67GF Score
Get the complete analysis for NZSE:FCG
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