Smithfield FoodsSFD -0.48%30 Return-on-Tangible-Equity is 24.91% as of Mar. 2026, which is 4% below its 10-year median of 25.92. GuruFocus rates SFD with a GF Score™ of 30/100. The stock has 2 warning signs investors should review. Among 1,874 Consumer Packaged Goods companies, Smithfield Foods ranks better than 86.07% 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. Smithfield Foods's annualized net income for the quarter that ended in Mar. 2026 was $984 Mil. Smithfield Foods's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $3,951 Mil. Therefore, Smithfield Foods's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 24.91%.
The historical rank and industry rank for Smithfield Foods's Return-on-Tangible-Equity or its related term are showing as below:
SFD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.39 Med: 25.92 Max: 32.18
Current: 27.64
During the past 13 years, Smithfield Foods's highest Return-on-Tangible-Equity was 32.18%. The lowest was 0.39%. And the median was 25.92%.
SFD's Return-on-Tangible-Equity is ranked better than 86.07% of 1874
companies
in the Consumer Packaged Goods industry
Industry Median: 7.715
vs SFD: 27.64
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.
Smithfield Foods Return-on-Tangible-Equity Related Terms
Smithfield Foods Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Smithfield Foods'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.
SFD vs DAR, SJM, PPC: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Smithfield Foods'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.
Smithfield Foods Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Smithfield Foods's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Smithfield Foods'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 24.91% mean?
Smithfield Foods (SFD) has a Return-on-Tangible-Equity of 24.91% 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 Smithfield Foods and its competitors. This is near median its historical median of 25.92. Over the past decade, Smithfield Foods' Return-on-Tangible-Equity has ranged from 0.39 to 32.18. According to the industry distribution chart, Smithfield Foods ranks #261 out of 1874 companies in the Consumer Packaged Goods industry, placing it in the top 13.9%.
Is Smithfield Foods' Return-on-Tangible-Equity too high?
Smithfield Foods' current Return-on-Tangible-Equity of 24.91% is near median its 10-year median of 25.92. Over the past 10 years, this metric has ranged from a low of 0.39 to a high of 32.18. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.72. Smithfield Foods' value of 24.91% is 222.9% above this industry median. Based on the distribution chart, Smithfield Foods ranks #261 out of 1874 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Smithfield Foods has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Smithfield Foods' Return-on-Tangible-Equity compare to DAR and SJM?
According to the Consumer Packaged Goods industry distribution chart, Smithfield Foods ranks #261 out of 1874 companies for Return-on-Tangible-Equity. This places Smithfield Foods in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.72. Smithfield Foods' value of 24.91% is 222.9% above this benchmark. Historically, Smithfield Foods' own Return-on-Tangible-Equity has ranged from 0.39 to 32.18 over the past decade. While the company's 10-year median is 25.92 vs. the industry median of 7.72, Smithfield Foods 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 7.72, based on 1,874 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. Smithfield Foods's current Return-on-Tangible-Equity of 24.91% is 222.9% 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 Smithfield Foods and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smithfield Foods's current Return-on-Tangible-Equity is 24.91%, which is near median its own 10-year median of 25.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smithfield Foods stock overvalued right now?
Smithfield Foods (SFD) has a current Return-on-Tangible-Equity of 24.91%. The current Return-on-Tangible-Equity is 24.91%, which is near median its 10-year median of 25.92 and 222.9% above the Consumer Packaged Goods industry median of 7.72. Smithfield Foods' overall GF Score™ is 30/100 with 2 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 Smithfield Foods (SFD), the current Return-on-Tangible-Equity is 24.91% 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.
Smithfield Foods Inc is a hog producer and pork processor based in the United States of America. The company conducts its operations through three reportable segments: Packaged Meats, Fresh Pork, and Hog Production. The company generates the maximum of its revenue from the Packaged Meats segment. The Packaged Meats segment consists of the company's U.S. operations that process fresh meat into a wide variety of packaged meats products, including bacon, sausage, hot dogs, deli and lunch meats, dry sausage products (such as pepperoni and genoa), ham products, ready-to-eat products and prepared foods (such as pre-cooked entrees, bacon and sausage).
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