DanoneXSWX:BN 70 Return-on-Tangible-Equity is Negative Tangible Equity% as of Dec. 2025. GuruFocus rates XSWX:BN with a GF Score™ of 70/100 and a GF Value™ of CHF60.08 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,876 Consumer Packaged Goods companies, Danone ranks better than 99.95% 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. Danone's annualized net income for the quarter that ended in Dec. 2025 was CHF1,465 Mil. Danone's average shareholder tangible equity for the quarter that ended in Dec. 2025 was CHF-5,937 Mil. Therefore, Danone's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was Negative Tangible Equity%.
The historical rank and industry rank for Danone's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:BN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
XSWX:BN's Return-on-Tangible-Equity is ranked better than 99.95% of 1876
companies
in the Consumer Packaged Goods industry
Industry Median: 7.715
vs XSWX:BN: Negative Tangible Equity
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.
Danone Return-on-Tangible-Equity Related Terms
Danone Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Danone'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.
XSWX:BN vs KHC, GIS: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Danone'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.
Danone Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Danone's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Danone'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 Negative Tangible Equity% mean?
Danone (XSWX:BN) has a Return-on-Tangible-Equity of Negative Tangible Equity% 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 Danone and its competitors. According to the industry distribution chart, Danone ranks #1 out of 1876 companies in the Consumer Packaged Goods industry, placing it in the top 0.099999999999994%.
Is Danone's Return-on-Tangible-Equity too high?
Danone's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Danone ranks #1 out of 1876 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Danone has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Danone's Return-on-Tangible-Equity compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Danone ranks #1 out of 1876 companies for Return-on-Tangible-Equity. This places Danone in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.72. 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 1,876 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 Danone 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. Danone's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Danone stock overvalued right now?
Based on GuruFocus' analysis, Danone (XSWX:BN) is currently considered Fairly Valued. The stock's GF Value™ is CHF60.08, compared to a current price of CHF62.26 — trading 3.6% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Danone's overall GF Score™ is 70/100 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 Danone (XSWX:BN), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Danone (XSWX:BN) Overvalued in 2026?
Based on GuruFocus' analysis, Danone stock appears to be overvalued.
The current stock price of CHF62.26 is trading 3.6% above its estimated GF Value™ of CHF60.08.
GuruFocus considers Danone to be Fairly Valued.
No single metric tells the full story. See the XSWX:BN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Danone is a global food and beverage industry leader with more than EUR 27 billion annual revenue. Its operations are organized into three broad segments: essential dairy and plant-based products, representing just over half of group revenue; specialized nutrition; and bottled water. The firm's portfolio includes well-known brands such as Danone/Dannon dairy products, Alpro plant-based dairy, Aptamil infant milk formula, Evian and Volvic bottled water, and leading medical nutrition brands.
70GF Score
Get the complete analysis for XSWX:BN
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:BN has been successfully added to your 
