Fonterra Co-operative Group (NZSE:FCG) ROCE %: 17.20% (As of Jan. 2026)

What is Fonterra Co-operative Group ROCE %?

Fonterra Co-operative Group NZSE:FCG -0.46% 66 ROCE % is 17.20% as of Jan. 2026. GuruFocus rates NZSE:FCG with a GF Score™ of 66/100 and a GF Value™ of NZ$2.95 (Significantly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Fonterra Co-operative Group's annualized ROCE % for the quarter that ended in Jan. 2026 was 17.20%.

Fonterra Co-operative Group (NZSE:FCG) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Fonterra Co-operative Group ROCE % Related Terms

Fonterra Co-operative Group ROCE % Historical Data

* Premium members only.

The historical data trend for Fonterra Co-operative Group's ROCE % 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.

Fonterra Co-operative Group ROCE % Chart

Fonterra Co-operative Group Annual Data

Trend

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Jul24

Jul25

ROCE %

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7.71

8.46

15.25

12.45

14.31

Fonterra Co-operative Group Semi-Annual Data
	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24	Jul24	Jan25	Jul25	Jan26
ROCE %	Get a 7-Day Free Trial															17.11	6.99	16.93	10.03	17.20

66GF Score

Fonterra Co-operative Group Ltd NZSE:FCG

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Fonterra Co-operative Group ROCE % Calculation

Fonterra Co-operative Group's annualized ROCE % for the fiscal year that ended in Jul. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jul. 2025 )		(A: Jul. 2024 )		(A: Jul. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jul. 2025 )		(A: Jul. 2024 )		(A: Jul. 2025 )
	=	1574	/	( ( (16679 - 5847)	+	(17526 - 6359) )	/ 2 )
	=	1574	/	( (10832	+	11167)	/ 2 )
	=	1574	/	10999.5
	=	14.31 %

Fonterra Co-operative Group's ROCE % of for the quarter that ended in Jan. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2026 )		(Q: Jul. 2025 )		(Q: Jan. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2026 )		(Q: Jul. 2025 )		(Q: Jan. 2026 )
	=	2100	/	( ( (17526 - 6359)	+	(21083 - 7826) )	/ 2 )
	=	2100	/	( ( 11167	+	13257 )	/ 2 )
	=	2100	/	12212
	=	17.20 %

(1) Note: The EBIT data used here is two times the semi-annual (Jan. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 17.20% mean?

Fonterra Co-operative Group (NZSE:FCG) has a ROCE % of 17.20% as of Jan. 2026.

Is Fonterra Co-operative Group's ROCE % too high?

Fonterra Co-operative Group's current ROCE % is 17.20%. The Consumer Packaged Goods industry median ROCE % is 8.78. Fonterra Co-operative Group's value of 17.20% is 96% above this industry median. Overall, Fonterra Co-operative Group has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Fonterra Co-operative Group's ROCE % compare to KHC and GIS?

Fonterra Co-operative Group's ROCE % of 17.20% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROCE % is 8.78. Fonterra Co-operative Group's value of 17.20% is 96% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Consumer Packaged Goods company?

The median ROCE % among Consumer Packaged Goods companies is 8.78, based on 1,938 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fonterra Co-operative Group's current ROCE % of 17.20% is 96% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Consumer Packaged Goods industry, the median ROCE % is 8.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fonterra Co-operative Group's current ROCE % is 17.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Fonterra Co-operative Group stock overvalued right now?

Based on GuruFocus' analysis, Fonterra Co-operative Group (NZSE:FCG) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$2.95, compared to a current price of NZ$4.33 — trading 46.8% above its estimated fair value. The current ROCE % is 17.20% and 96% above the Consumer Packaged Goods industry median of 8.78. Fonterra Co-operative Group's overall GF Score™ is 66/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Fonterra Co-operative Group (NZSE:FCG), the current ROCE % is 17.20% as of Jan. 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 Fonterra Co-operative Group (NZSE:FCG) Overvalued in 2026?

Based on GuruFocus' analysis, Fonterra Co-operative Group stock appears to be overvalued. The current stock price of NZ$4.33 is trading 46.8% above its estimated GF Value™ of NZ$2.95. GuruFocus considers Fonterra Co-operative Group to be Significantly Overvalued.

Key valuation signals for NZSE:FCG:

ROCE %: 17.20%
GF Value™: NZ$2.95 vs. price of NZ$4.33 (46.8% above fair value)
GF Score™: 66/100 with 6 warning signs
Industry Position: 96% above the Consumer Packaged Goods median

No single metric tells the full story. See the NZSE:FCG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Fonterra Co-operative Group Business Description

Industry Consumer Defensive Consumer Packaged Goods

Comparable Companies NZSE:SCL NZSE:SML NZSE:CVT NZSE:MEE XSWX:NESN XPAR:BN BOG:NUTRESA TSE:2802 SHSE:603288 NSE:NESTLEIND KHC SHSE:600887 SZSE:300999 GIS SGX:F34 LSE:ABF HKSE:00288 MEX:BIMBOA DUB:KRZ JBS

Address 109 Fanshawe Street, Auckland Central, Auckland, NTL, NZL, 1010

Website https://www.fonterra.com

Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets is Asia, China, Australia, New Zealand, the United States, and the Rest of the world.

66GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NZ$4.33

Price

NZ$2.95

GF Value

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