Fonterra Co-operative GroupNZSE:FCG -0.46%66 ROE % is 17.70% as of Jan. 2026, which is 64% above its 10-year median of 10.76. 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. Among 1,916 Consumer Packaged Goods companies, Fonterra Co-operative Group ranks better than 72.29% on this metric.
The historical rank and industry rank for Fonterra Co-operative Group's ROE % or its related term are showing as below:
NZSE:FCG'
s ROE % Range Over the Past 10 Years
Min: -9.39 Med: 10.76 Max: 21.25
Current: 13.27
During the past 13 years, Fonterra Co-operative Group's highest ROE % was 21.25%. The lowest was -9.39%. And the median was 10.76%.
NZSE:FCG's ROE % is ranked better than 72.29% of 1916
companies
in the Consumer Packaged Goods industry
Industry Median: 6.72
vs NZSE:FCG: 13.27
Fonterra Co-operative Group (NZSE:FCG) 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:
Note:
The net income data used here is two times the semi-annual (Jan. 2026) net income data. The Revenue data used here is two times the semi-annual (Jan. 2026) 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.
* 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.
For the Packaged Foods subindustry, Fonterra Co-operative Group'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.
Fonterra Co-operative Group ROE % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Fonterra Co-operative Group's ROE % distribution charts can be found below:
* The bar in red indicates where Fonterra Co-operative Group's ROE % 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 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 (Jan. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Fonterra Co-operative Group (NZSE:FCG) has a ROE % of 17.70% as of Jan. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Fonterra Co-operative Group and its competitors. This is 64% above median its historical median of 10.76. According to the industry distribution chart, Fonterra Co-operative Group ranks #531 out of 1916 companies in the Consumer Packaged Goods industry, placing it in the top 27.7%.
Is Fonterra Co-operative Group's ROE % too high?
Fonterra Co-operative Group's current ROE % of 17.70% is 64% above median its 10-year median of 10.76. The Consumer Packaged Goods industry median ROE % is 6.72. Fonterra Co-operative Group's value of 17.70% is 163.4% above this industry median. Based on the distribution chart, Fonterra Co-operative Group ranks #531 out of 1916 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. 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 ROE % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Fonterra Co-operative Group ranks #531 out of 1916 companies for ROE %. This puts Fonterra Co-operative Group in the upper half of its industry. The industry median ROE % is 6.72. Fonterra Co-operative Group's value of 17.70% is 163.4% above this benchmark. While the company's 10-year median is 10.76 vs. the industry median of 6.72, Fonterra Co-operative Group 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. Fonterra Co-operative Group's current ROE % of 17.70% is 163.4% 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 Fonterra Co-operative Group 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. Fonterra Co-operative Group's current ROE % is 17.70%, which is 64% above median its own 10-year median of 10.76. 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 ROE % is 17.70%, which is 64% above median its 10-year median of 10.76 and 163.4% above the Consumer Packaged Goods industry median of 6.72. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Fonterra Co-operative Group (NZSE:FCG), the current ROE % is 17.70% 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:
ROE %: 17.70% (64% above median its 10-year median of 10.76)
GF Value™: NZ$2.95 vs. price of NZ$4.33 (46.8% above fair value)
Industry Position: 163.4% above the Consumer Packaged Goods median (#531 of 1916)
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 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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