Rainbow Chicken (JSE:RBO) ROE %: 27.55% (As of Dec. 2025) — 621% Above Median


JSE:RBO Rainbow Chicken Ltd JSE:RBO
12 GF Score
Price R5.75
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What is Rainbow Chicken ROE %?

Rainbow Chicken JSE:RBO +7.08% 12 ROE % is 27.55% as of Dec. 2025, which is 621% above its 10-year median of 3.82. GuruFocus rates JSE:RBO with a GF Score™ of 12/100. Among 1,916 Consumer Packaged Goods companies, Rainbow Chicken ranks better than 85.39% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Rainbow Chicken's annualized net income for the quarter that ended in Dec. 2025 was R1,339 Mil. Rainbow Chicken's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was R4,859 Mil. Therefore, Rainbow Chicken's annualized ROE % for the quarter that ended in Dec. 2025 was 27.55%.

The historical rank and industry rank for Rainbow Chicken's ROE % or its related term are showing as below:

JSE:RBO' s ROE % Range Over the Past 10 Years
Min: -32.07   Med: 3.82   Max: 19.68
Current: 19.68

During the past 5 years, Rainbow Chicken's highest ROE % was 19.68%. The lowest was -32.07%. And the median was 3.82%.

JSE:RBO's ROE % is ranked better than
85.39% of 1916 companies
in the Consumer Packaged Goods industry
Industry Median: 6.72 vs JSE:RBO: 19.68

Rainbow Chicken  (JSE:RBO) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=1338.914/4859.341
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1338.914 / 17573.966)*(17573.966 / 8830.102)*(8830.102 / 4859.341)
=Net Margin %*Asset Turnover*Equity Multiplier
=7.62 %*1.9902*1.8171
=ROA %*Equity Multiplier
=15.17 %*1.8171
=27.55 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=1338.914/4859.341
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1338.914 / 1826.492) * (1826.492 / 1731.518) * (1731.518 / 17573.966) * (17573.966 / 8830.102) * (8830.102 / 4859.341)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7331 * 1.0549 * 9.85 % * 1.9902 * 1.8171
=27.55 %

Note: The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


Rainbow Chicken ROE % Related Terms


Rainbow Chicken ROE % Historical Data

* Premium members only.

The historical data trend for Rainbow Chicken's ROE % 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.

Rainbow Chicken ROE % Chart

Rainbow Chicken Annual Data
Trend Jun21 Jun22 Jun23 Jun24 Jun25
ROE %
-16.28 3.82 -32.07 7.68 13.24

Rainbow Chicken Semi-Annual Data
Jun21 Jun22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROE % Get a 7-Day Free Trial 1.83 8.04 15.14 11.33 27.55

JSE:RBO vs KHC, GIS, JBS: ROE % Comparison

For the Packaged Foods subindustry, Rainbow Chicken's ROE %, along with its competitors' market caps and ROE % 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.


Rainbow Chicken ROE % vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Rainbow Chicken's ROE % distribution charts can be found below:

* The bar in red indicates where Rainbow Chicken's ROE % falls into.


JSE:RBO
12GF Score
Rainbow Chicken Ltd JSE:RBO
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Rainbow Chicken ROE % Calculation

Rainbow Chicken's annualized ROE % for the fiscal year that ended in Jun. 2025 is calculated as

ROE %=Net Income (A: Jun. 2025 )/( (Total Stockholders Equity (A: Jun. 2024 )+Total Stockholders Equity (A: Jun. 2025 ))/ count )
=571.163/( (4012.639+4613.956)/ 2 )
=571.163/4313.2975
=13.24 %

Rainbow Chicken's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Jun. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=1338.914/( (4613.956+5104.726)/ 2 )
=1338.914/4859.341
=27.55 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder 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. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 27.55% mean?
Rainbow Chicken (JSE:RBO) has a ROE % of 27.55% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rainbow Chicken and its competitors. This is 621% above median its historical median of 3.82. According to the industry distribution chart, Rainbow Chicken ranks #280 out of 1916 companies in the Consumer Packaged Goods industry, placing it in the top 14.6%.
Is Rainbow Chicken's ROE % too high?
Rainbow Chicken's current ROE % of 27.55% is 621% above median its 10-year median of 3.82. The Consumer Packaged Goods industry median ROE % is 6.72. Rainbow Chicken's value of 27.55% is 310% above this industry median. Based on the distribution chart, Rainbow Chicken ranks #280 out of 1916 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Rainbow Chicken has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Rainbow Chicken's ROE % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Rainbow Chicken ranks #280 out of 1916 companies for ROE %. This places Rainbow Chicken in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 6.72. Rainbow Chicken's value of 27.55% is 310% above this benchmark. While the company's 10-year median is 3.82 vs. the industry median of 6.72, Rainbow Chicken 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 ROE % for a Consumer Packaged Goods company?
The median ROE % among Consumer Packaged Goods companies is 6.72, based on 1,916 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rainbow Chicken's current ROE % of 27.55% is 310% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rainbow Chicken and its competitors. For the Consumer Packaged Goods industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rainbow Chicken's current ROE % is 27.55%, which is 621% above median its own 10-year median of 3.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rainbow Chicken stock overvalued right now?
Rainbow Chicken (JSE:RBO) has a current ROE % of 27.55%. The current ROE % is 27.55%, which is 621% above median its 10-year median of 3.82 and 310% above the Consumer Packaged Goods industry median of 6.72. Rainbow Chicken's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Rainbow Chicken (JSE:RBO), the current ROE % is 27.55% 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.

Rainbow Chicken Business Description

Address Cnr John Vorster and Nellmapius Drive, Southdowns Ridge Office Park Suite 12, Centurion, Irene, GT, ZAF, 3701
Rainbow Chicken Ltd is a fully integrated broiler producing company involved in all stages of chicken production from farm to fork. It is a trusted South African heritage brand that consumers have come to rely on for quality chicken products. Its diverse product offering includes the following product sets: Fresh Chicken, Standard Chicken, Frozen Specialized Chicken, Chilled process meat. It segments includes Chicken, Animal Feed (consisting of Epol and Driehoek), Waste-to-Value (consisting of Matzonox and Matzonox Fertilisers), Group (other immaterial segments). Maximum of revenue is from Chicken Segment.
12GF Score

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

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