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Fonterra Co-operative GroupNZSE:FCG +0.24%65 5-Year Yield-on-Cost % is 5.77 as of Jul. 30, 2026, which is 22% below its 10-year median of 7.40. GuruFocus rates NZSE:FCG with a GF Score™ of 65/100 and a GF Value™ of NZ$2.98 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,168 Consumer Packaged Goods companies, Fonterra Co-operative Group ranks better than 71.15% on this metric.
The historical rank and industry rank for Fonterra Co-operative Group's 5-Year Yield-on-Cost % or its related term are showing as below:
NZSE:FCG'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.63 Med: 7.4 Max: 18.47
Current: 5.77
During the past 13 years, Fonterra Co-operative Group's highest Yield on Cost was 18.47. The lowest was 2.63. And the median was 7.40.
NZSE:FCG's 5-Year Yield-on-Cost % is ranked better than 71.15% of 1168
companies
in the Consumer Packaged Goods industry
Industry Median: 3.405
vs NZSE:FCG: 5.77
Fonterra Co-operative Group (NZSE:FCG) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Fonterra Co-operative Group 5-Year Yield-on-Cost % Related Terms
NZSE:FCG vs KHC, GIS, HRL: 5-Year Yield-on-Cost % Comparison
For the Packaged Foods subindustry, Fonterra Co-operative Group's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Fonterra Co-operative Group's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Fonterra Co-operative Group's 5-Year Yield-on-Cost % falls into.
Fonterra Co-operative Group 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Fonterra Co-operative Group (NZSE:FCG) has a 5-Year Yield-on-Cost % of 5.77 as of Jul. 30, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Fonterra Co-operative Group and its competitors. This is 22% below median its historical median of 7.40. Over the past decade, Fonterra Co-operative Group's 5-Year Yield-on-Cost % has ranged from 2.63 to 18.47. According to the industry distribution chart, Fonterra Co-operative Group ranks #337 out of 1168 companies in the Consumer Packaged Goods industry, placing it in the top 28.9%.
Is Fonterra Co-operative Group's 5-Year Yield-on-Cost % too high?
Fonterra Co-operative Group's current 5-Year Yield-on-Cost % of 5.77 is 22% below median its 10-year median of 7.40. Over the past 10 years, this metric has ranged from a low of 2.63 to a high of 18.47. The Consumer Packaged Goods industry median 5-Year Yield-on-Cost % is 3.41. Fonterra Co-operative Group's value of 5.77 is 69.5% above this industry median. Based on the distribution chart, Fonterra Co-operative Group ranks #337 out of 1168 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Fonterra Co-operative Group has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fonterra Co-operative Group's 5-Year Yield-on-Cost % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Fonterra Co-operative Group ranks #337 out of 1168 companies for 5-Year Yield-on-Cost %. This puts Fonterra Co-operative Group in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.41. Fonterra Co-operative Group's value of 5.77 is 69.5% above this benchmark. Historically, Fonterra Co-operative Group's own 5-Year Yield-on-Cost % has ranged from 2.63 to 18.47 over the past decade. While the company's 10-year median is 7.40 vs. the industry median of 3.41, 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 5-Year Yield-on-Cost % for a Consumer Packaged Goods company?
The median 5-Year Yield-on-Cost % among Consumer Packaged Goods companies is 3.41, based on 1,168 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fonterra Co-operative Group's current 5-Year Yield-on-Cost % of 5.77 is 69.5% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Fonterra Co-operative Group and its competitors. For the Consumer Packaged Goods industry, the median 5-Year Yield-on-Cost % is 3.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fonterra Co-operative Group's current 5-Year Yield-on-Cost % is 5.77, which is 22% below median its own 10-year median of 7.40. 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$2.98, compared to a current price of NZ$4.25 — trading 42.6% above its estimated fair value. The current 5-Year Yield-on-Cost % is 5.77, which is 22% below median its 10-year median of 7.40 and 69.5% above the Consumer Packaged Goods industry median of 3.41. Fonterra Co-operative Group's overall GF Score™ is 65/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Fonterra Co-operative Group (NZSE:FCG), the current 5-Year Yield-on-Cost % is 5.77 as of Jul. 30, 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$4.25 is trading 42.6% above its estimated GF Value™ of NZ$2.98.
GuruFocus considers Fonterra Co-operative Group to be Significantly Overvalued.
Key valuation signals for NZSE:FCG:
5-Year Yield-on-Cost %: 5.77 (22% below median its 10-year median of 7.40)
GF Value™: NZ$2.98 vs. price of NZ$4.25 (42.6% above fair value)
Industry Position: 69.5% above the Consumer Packaged Goods median (#337 of 1168)
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.
65GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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