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Salt TradingXNEP:STC +0.68%79 Return-on-Tangible-Equity is 3.90% as of Jul. 2025, which is 14% above its 10-year median of 3.42. GuruFocus rates XNEP:STC with a GF Score™ of 79/100 and a GF Value™ of NPR4,290.89 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,881 Consumer Packaged Goods companies, Salt Trading ranks worse than 64.11% 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. Salt Trading's annualized net income for the quarter that ended in Jul. 2025 was NPR63 Mil. Salt Trading's average shareholder tangible equity for the quarter that ended in Jul. 2025 was NPR1,621 Mil. Therefore, Salt Trading's annualized Return-on-Tangible-Equity for the quarter that ended in Jul. 2025 was 3.90%.
The historical rank and industry rank for Salt Trading's Return-on-Tangible-Equity or its related term are showing as below:
XNEP:STC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.45 Med: 3.42 Max: 4.3
Current: 3.9
During the past 7 years, Salt Trading's highest Return-on-Tangible-Equity was 4.30%. The lowest was 2.45%. And the median was 3.42%.
XNEP:STC's Return-on-Tangible-Equity is ranked worse than 64.11% of 1881
companies
in the Consumer Packaged Goods industry
Industry Median: 7.78
vs XNEP:STC: 3.90
Salt Trading (XNEP:STC) 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.
Salt Trading Return-on-Tangible-Equity Related Terms
Salt Trading Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Salt Trading'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.
XNEP:STC vs KHC, GIS, HRL: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Salt Trading'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.
Salt Trading Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Salt Trading's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Salt Trading'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 one times the annual (Jul. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 3.90% mean?
Salt Trading (XNEP:STC) has a Return-on-Tangible-Equity of 3.90% as of Jul. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Salt Trading and its competitors. This is 14% above median its historical median of 3.42. Over the past decade, Salt Trading's Return-on-Tangible-Equity has ranged from 2.45 to 4.30. According to the industry distribution chart, Salt Trading ranks #1206 out of 1881 companies in the Consumer Packaged Goods industry, placing it in the top 64.1%.
Is Salt Trading's Return-on-Tangible-Equity too high?
Salt Trading's current Return-on-Tangible-Equity of 3.90% is 14% above median its 10-year median of 3.42. Over the past 10 years, this metric has ranged from a low of 2.45 to a high of 4.30. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.78. Salt Trading's value of 3.90% is 49.9% below this industry median. Based on the distribution chart, Salt Trading ranks #1206 out of 1881 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Salt Trading has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Salt Trading's Return-on-Tangible-Equity compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Salt Trading ranks #1206 out of 1881 companies for Return-on-Tangible-Equity. This places Salt Trading in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.78. Salt Trading's value of 3.90% is 49.9% below this benchmark. Historically, Salt Trading's own Return-on-Tangible-Equity has ranged from 2.45 to 4.30 over the past decade. While the company's 10-year median is 3.42 vs. the industry median of 7.78, Salt Trading 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 Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.78, based on 1,881 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. Salt Trading's current Return-on-Tangible-Equity of 3.90% is 49.9% 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 Salt Trading 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. Salt Trading's current Return-on-Tangible-Equity is 3.90%, which is 14% above median its own 10-year median of 3.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Salt Trading stock overvalued right now?
Based on GuruFocus' analysis, Salt Trading (XNEP:STC) is currently considered Modestly Overvalued. The stock's GF Value™ is NPR4,290.89, compared to a current price of NPR5,295.00 — trading 23.4% above its estimated fair value. The current Return-on-Tangible-Equity is 3.90%, which is 14% above median its 10-year median of 3.42 and 49.9% below the Consumer Packaged Goods industry median of 7.78. Salt Trading's overall GF Score™ is 79/100 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 Salt Trading (XNEP:STC), the current Return-on-Tangible-Equity is 3.90% as of Jul. 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 Salt Trading (XNEP:STC) Overvalued in 2026?
Based on GuruFocus' analysis, Salt Trading stock appears to be overvalued.
The current stock price of NPR5,295.00 is trading 23.4% above its estimated GF Value™ of NPR4,290.89.
GuruFocus considers Salt Trading to be Modestly Overvalued.
Key valuation signals for XNEP:STC:
Return-on-Tangible-Equity: 3.90% (14% above median its 10-year median of 3.42)
GF Value™: NPR4,290.89 vs. price of NPR5,295.00 (23.4% above fair value)
Industry Position: 49.9% below the Consumer Packaged Goods median (#1206 of 1881)
No single metric tells the full story. See the XNEP:STC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Salt Trading Corp operates as the sole supplier of salt within Nepal. Its key business segments include: i) Salt Sales: Free flow salt, washed salt, Phoda salt, ii) Fertilizer Sales: Subsidised-Diammonium Phosphate, Urea, Potash, iii) Gas: STC Gas, and iv)Others: Sugar, seed, wheat, Cement, Iron steel, Rice, Flour, Gas, Ghee Oil, Paper, Kitchen appliances and Others. The majority of revenue is derived from the Salt segment.
79GF Score
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