ZozoSRTTY +2.04%86 Return-on-Tangible-Equity is 59.69% as of Mar. 2026, which is 3% below its 10-year median of 61.81. GuruFocus rates SRTTY with a GF Score™ of 86/100 and a GF Value™ of $8.86 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,058 Retail - Cyclical companies, Zozo ranks better than 90.45% 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. Zozo's annualized net income for the quarter that ended in Mar. 2026 was $276 Mil. Zozo's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $462 Mil. Therefore, Zozo's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 59.69%.
The historical rank and industry rank for Zozo's Return-on-Tangible-Equity or its related term are showing as below:
SRTTY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 51.12 Med: 61.81 Max: 80.08
Current: 65.1
During the past 13 years, Zozo's highest Return-on-Tangible-Equity was 80.08%. The lowest was 51.12%. And the median was 61.81%.
SRTTY's Return-on-Tangible-Equity is ranked better than 90.45% of 1058
companies
in the Retail - Cyclical industry
Industry Median: 8.325
vs SRTTY: 65.10
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.
Zozo Return-on-Tangible-Equity Related Terms
Zozo Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zozo'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.
SRTTY vs AMZN, BABA, PDD: Return-on-Tangible-Equity Comparison
For the Internet Retail subindustry, Zozo'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.
Zozo Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Zozo's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zozo'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 59.69% mean?
Zozo (SRTTY) has a Return-on-Tangible-Equity of 59.69% 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 Zozo and its competitors. This is near median its historical median of 61.81. Over the past decade, Zozo's Return-on-Tangible-Equity has ranged from 51.12 to 80.08. According to the industry distribution chart, Zozo ranks #101 out of 1058 companies in the Retail - Cyclical industry, placing it in the top 9.5%.
Is Zozo's Return-on-Tangible-Equity too high?
Zozo's current Return-on-Tangible-Equity of 59.69% is near median its 10-year median of 61.81. Over the past 10 years, this metric has ranged from a low of 51.12 to a high of 80.08. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.33. Zozo's value of 59.69% is 617% above this industry median. Based on the distribution chart, Zozo ranks #101 out of 1058 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Zozo has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zozo's Return-on-Tangible-Equity compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Zozo ranks #101 out of 1058 companies for Return-on-Tangible-Equity. This places Zozo in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.33. Zozo's value of 59.69% is 617% above this benchmark. Historically, Zozo's own Return-on-Tangible-Equity has ranged from 51.12 to 80.08 over the past decade. While the company's 10-year median is 61.81 vs. the industry median of 8.33, Zozo 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.33, based on 1,058 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. Zozo's current Return-on-Tangible-Equity of 59.69% is 617% 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 Zozo and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zozo's current Return-on-Tangible-Equity is 59.69%, which is near median its own 10-year median of 61.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zozo stock overvalued right now?
Based on GuruFocus' analysis, Zozo (SRTTY) is currently considered Modestly Undervalued. The stock's GF Value™ is $8.86, compared to a current price of $7.00 — trading 21% below its estimated fair value. The current Return-on-Tangible-Equity is 59.69%, which is near median its 10-year median of 61.81 and 617% above the Retail - Cyclical industry median of 8.33. Zozo's overall GF Score™ is 86/100 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 Zozo (SRTTY), the current Return-on-Tangible-Equity is 59.69% 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.
Is Zozo (SRTTY) Overvalued in 2026?
Based on GuruFocus' analysis, Zozo stock appears to be undervalued.
The current stock price of $7.00 is trading 21% below its estimated GF Value™ of $8.86.
GuruFocus considers Zozo to be Modestly Undervalued.
Key valuation signals for SRTTY:
Return-on-Tangible-Equity: 59.69% (near median its 10-year median of 61.81)
GF Value™: $8.86 vs. price of $7.00 (21% below fair value)
Industry Position: 617% above the Retail - Cyclical median (#101 of 1058)
No single metric tells the full story. See the SRTTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zozo, established in 1998 by Yusaku Maezawa, operates Zozotown, Japan's largest fashion e-commerce platform. Zozotown runs primarily on a consignment model, where brands stock products at Zozo's logistics bases and operate shops as tenants. As of 2025, Zozotown hosts over 11,000 brands and 12.5 million active users. Beyond its core domestic business, Zozo is expanding into adjacent categories such as skincare, cosmetics, and fragrance (near fashion), and internationally through Lyst, a UK-based luxury fashion platform acquired in 2025, and Zozofit, a body measurement app.
86GF Score
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