Salvatore Ferragamo SpASFRGF 65 Return-on-Tangible-Equity is 2.98% as of Dec. 2025, which is 72% below its 10-year median of 10.59. GuruFocus rates SFRGF with a GF Score™ of 65/100 and a GF Value™ of $8.25 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,057 Retail - Cyclical companies, Salvatore Ferragamo SpA ranks worse than 85.43% 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. Salvatore Ferragamo SpA's annualized net income for the quarter that ended in Dec. 2025 was $19 Mil. Salvatore Ferragamo SpA's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $650 Mil. Therefore, Salvatore Ferragamo SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 2.98%.
The historical rank and industry rank for Salvatore Ferragamo SpA's Return-on-Tangible-Equity or its related term are showing as below:
SFRGF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -10.82 Med: 10.59 Max: 34.06
Current: -8.72
During the past 13 years, Salvatore Ferragamo SpA's highest Return-on-Tangible-Equity was 34.06%. The lowest was -10.82%. And the median was 10.59%.
SFRGF's Return-on-Tangible-Equity is ranked worse than 85.43% of 1057
companies
in the Retail - Cyclical industry
Industry Median: 8.28
vs SFRGF: -8.72
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.
Salvatore Ferragamo SpA Return-on-Tangible-Equity Related Terms
Salvatore Ferragamo SpA Return-on-Tangible-Equity Historical Data
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The historical data trend for Salvatore Ferragamo SpA'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.
SFRGF vs TPR, SIG: Return-on-Tangible-Equity Comparison
For the Luxury Goods subindustry, Salvatore Ferragamo SpA'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.
Salvatore Ferragamo SpA Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Salvatore Ferragamo SpA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Salvatore Ferragamo SpA'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 2.98% mean?
Salvatore Ferragamo SpA (SFRGF) has a Return-on-Tangible-Equity of 2.98% 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 Salvatore Ferragamo SpA and its competitors. This is 72% below median its historical median of 10.59. According to the industry distribution chart, Salvatore Ferragamo SpA ranks #903 out of 1057 companies in the Retail - Cyclical industry, placing it in the top 85.4%.
Is Salvatore Ferragamo SpA's Return-on-Tangible-Equity too high?
Salvatore Ferragamo SpA's current Return-on-Tangible-Equity of 2.98% is 72% below median its 10-year median of 10.59. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.28. Salvatore Ferragamo SpA's value of 2.98% is 64% below this industry median. Based on the distribution chart, Salvatore Ferragamo SpA ranks #903 out of 1057 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Salvatore Ferragamo SpA has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Salvatore Ferragamo SpA's Return-on-Tangible-Equity compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Salvatore Ferragamo SpA ranks #903 out of 1057 companies for Return-on-Tangible-Equity. This places Salvatore Ferragamo SpA in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.28. Salvatore Ferragamo SpA's value of 2.98% is 64% below this benchmark. While the company's 10-year median is 10.59 vs. the industry median of 8.28, Salvatore Ferragamo SpA 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.28, based on 1,057 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. Salvatore Ferragamo SpA's current Return-on-Tangible-Equity of 2.98% is 64% 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 Salvatore Ferragamo SpA and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Salvatore Ferragamo SpA's current Return-on-Tangible-Equity is 2.98%, which is 72% below median its own 10-year median of 10.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Salvatore Ferragamo SpA stock overvalued right now?
Based on GuruFocus' analysis, Salvatore Ferragamo SpA (SFRGF) is currently considered Fairly Valued. The stock's GF Value™ is $8.25, compared to a current price of $8.90 — trading 7.9% above its estimated fair value. The current Return-on-Tangible-Equity is 2.98%, which is 72% below median its 10-year median of 10.59 and 64% below the Retail - Cyclical industry median of 8.28. Salvatore Ferragamo SpA's overall GF Score™ is 65/100 with 7 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 Salvatore Ferragamo SpA (SFRGF), the current Return-on-Tangible-Equity is 2.98% 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 Salvatore Ferragamo SpA (SFRGF) Overvalued in 2026?
Based on GuruFocus' analysis, Salvatore Ferragamo SpA stock appears to be overvalued.
The current stock price of $8.90 is trading 7.9% above its estimated GF Value™ of $8.25.
GuruFocus considers Salvatore Ferragamo SpA to be Fairly Valued.
Key valuation signals for SFRGF:
Return-on-Tangible-Equity: 2.98% (72% below median its 10-year median of 10.59)
GF Value™: $8.25 vs. price of $8.90 (7.9% above fair value)
Industry Position: 64% below the Retail - Cyclical median (#903 of 1057)
No single metric tells the full story. See the SFRGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1927, Salvatore Ferragamo is an Italian monobrand company known for its footwear and accessories. The company generates about 45% of revenue in the fragmented footwear category, 40% in leather goods, 6% in apparel, and 7% in accessories. It was one of the pioneers in establishing a presence in Asia, where it generates 28% of sales and other emerging markets (8% of sales in Central and South America). Ferragamo generates 24% of revenue in Europe, 30% in the US, and 8% in Japan.
65GF Score
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