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Synlait MilkNZSE:SML 29 Return-on-Tangible-Equity is -25.77% as of Jan. 2026. GuruFocus rates NZSE:SML with a GF Score™ of 29/100 and a GF Value™ of NZ$0.33 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,878 Consumer Packaged Goods companies, Synlait Milk ranks worse than 90.84% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Synlait Milk's annualized net income for the quarter that ended in Jan. 2026 was NZ$-161 Mil. Synlait Milk's average shareholder tangible equity for the quarter that ended in Jan. 2026 was NZ$626 Mil. Therefore, Synlait Milk's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2026 was -25.77%.
The historical rank and industry rank for Synlait Milk's Return-on-Tangible-Equity or its related term are showing as below:
NZSE:SML'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -30.93 Med: 9.11 Max: 18.73
Current: -19.61
During the past 13 years, Synlait Milk's highest Return-on-Tangible-Equity was 18.73%. The lowest was -30.93%. And the median was 9.11%.
NZSE:SML's Return-on-Tangible-Equity is ranked worse than 90.84% of 1878
companies
in the Consumer Packaged Goods industry
Industry Median: 7.78
vs NZSE:SML: -19.61
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.
Synlait Milk Return-on-Tangible-Equity Related Terms
Synlait Milk Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Synlait Milk'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:SML vs KHC, GIS, HRL: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Synlait Milk'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.
Synlait Milk Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Synlait Milk's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Synlait Milk'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 -25.77% mean?
Synlait Milk (NZSE:SML) has a Return-on-Tangible-Equity of -25.77% 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 Synlait Milk and its competitors. According to the industry distribution chart, Synlait Milk ranks #1706 out of 1878 companies in the Consumer Packaged Goods industry, placing it in the top 90.8%.
Is Synlait Milk's Return-on-Tangible-Equity too high?
Synlait Milk's current Return-on-Tangible-Equity is -25.77%. Based on the distribution chart, Synlait Milk ranks #1706 out of 1878 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Synlait Milk has a GF Score™ of 29/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Synlait Milk's Return-on-Tangible-Equity compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Synlait Milk ranks #1706 out of 1878 companies for Return-on-Tangible-Equity. This places Synlait Milk in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.78. 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. 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 Synlait Milk 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. Synlait Milk's current Return-on-Tangible-Equity is -25.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Synlait Milk stock overvalued right now?
Based on GuruFocus' analysis, Synlait Milk (NZSE:SML) is currently considered Modestly Overvalued. The stock's GF Value™ is NZ$0.33, compared to a current price of NZ$0.38 — trading 13.6% above its estimated fair value. The current Return-on-Tangible-Equity is -25.77%. Synlait Milk's overall GF Score™ is 29/100 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 Synlait Milk (NZSE:SML), the current Return-on-Tangible-Equity is -25.77% 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 Synlait Milk (NZSE:SML) Overvalued in 2026?
Based on GuruFocus' analysis, Synlait Milk stock appears to be overvalued.
The current stock price of NZ$0.38 is trading 13.6% above its estimated GF Value™ of NZ$0.33.
GuruFocus considers Synlait Milk to be Modestly Overvalued.
Key valuation signals for NZSE:SML:
Return-on-Tangible-Equity: -25.77%
GF Value™: NZ$0.33 vs. price of NZ$0.38 (13.6% above fair value)
No single metric tells the full story. See the NZSE:SML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Synlait Milk Ltd is a dairy processing company that benefits from a differentiated milk supply and operating environment in New Zealand. The business operates within one industry that includes the manufacture of milk powder and its related products, liquid milk, cheese, and butter. Its segment are Synlait and Dairyworks, out of which it derives maximum revenue from Synlait segment.
29GF Score
Get the complete analysis for NZSE:SML
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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