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Cathay Financial Holding Co (LSE:CFHS) Equity-to-Asset Explanation
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
Cathay Financial Holding Co Equity-to-Asset Related Terms
Cathay Financial Holding Co Equity-to-Asset Historical Data
* 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.
LSE:CFHS vs AFL, MET, PRU: Equity-to-Asset Comparison
For the Insurance - Life subindustry, Cathay Financial Holding Co's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset 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.
Cathay Financial Holding Co Equity-to-Asset vs Insurance Industry
For the Insurance industry and Financial Services sector, Cathay Financial Holding Co's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where Cathay Financial Holding Co's Equity-to-Asset falls into.
Cathay Financial Holding Co Equity-to-Asset Calculation
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
Cathay Financial Holding Co's Equity to Asset Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Cathay Financial Holding Co (LSE:CFHS) has a Equity-to-Asset of 0.07 as of Dec. 2025. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Cathay Financial Holding Co and its competitors. This is near median its historical median of 0.07. Over the past decade, Cathay Financial Holding Co's Equity-to-Asset has ranged from 0.05 to 0.08. According to the industry distribution chart, Cathay Financial Holding Co ranks #428 out of 505 companies in the Insurance industry, placing it in the top 84.8%.
Is Cathay Financial Holding Co's Equity-to-Asset too high?
Cathay Financial Holding Co's current Equity-to-Asset of 0.07 is near median its 10-year median of 0.07. Over the past 10 years, this metric has ranged from a low of 0.05 to a high of 0.08. The Insurance industry median Equity-to-Asset is 0.26. Cathay Financial Holding Co's value of 0.07 is 73.1% below this industry median. Based on the distribution chart, Cathay Financial Holding Co ranks #428 out of 505 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Cathay Financial Holding Co has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Cathay Financial Holding Co's Equity-to-Asset compare to AFL and MET?
According to the Insurance industry distribution chart, Cathay Financial Holding Co ranks #428 out of 505 companies for Equity-to-Asset. This places Cathay Financial Holding Co in the lower half of its industry. The industry median Equity-to-Asset is 0.26. Cathay Financial Holding Co's value of 0.07 is 73.1% below this benchmark. Historically, Cathay Financial Holding Co's own Equity-to-Asset has ranged from 0.05 to 0.08 over the past decade. While the company's 10-year median is 0.07 vs. the industry median of 0.26, Cathay Financial Holding Co has consistently been below 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 Equity-to-Asset for an Insurance company?
The median Equity-to-Asset among Insurance companies is 0.26, based on 505 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cathay Financial Holding Co's current Equity-to-Asset of 0.07 is 73.1% below 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 Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Cathay Financial Holding Co and its competitors. For the Insurance industry, the median Equity-to-Asset is 0.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Financial Holding Co's current Equity-to-Asset is 0.07, which is near median its own 10-year median of 0.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Financial Holding Co stock overvalued right now?
Cathay Financial Holding Co (LSE:CFHS) has a current Equity-to-Asset of 0.07. The stock's GF Value™ is $14.32, compared to a current price of $19.20 — trading 34.1% above its estimated fair value. The current Equity-to-Asset is 0.07, which is near median its 10-year median of 0.07 and 73.1% below the Insurance industry median of 0.26. Cathay Financial Holding Co's overall GF Score™ is 54/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Cathay Financial Holding Co (LSE:CFHS), the current Equity-to-Asset is 0.07 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 Cathay Financial Holding Co (LSE:CFHS) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Financial Holding Co stock appears to be overvalued.
The current stock price of $19.20 is trading 34.1% above its estimated GF Value™ of $14.32.
Key valuation signals for LSE:CFHS:
Equity-to-Asset: 0.07 (near median its 10-year median of 0.07)
GF Value™: $14.32 vs. price of $19.20 (34.1% above fair value)
Industry Position: 73.1% below the Insurance median (#428 of 505)
No single metric tells the full story. See the LSE:CFHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Financial Holding Co Ltd is a financial holding company. It has five operating segments Banking segment is engaged in permitted businesses of commercial banks; Life insurance segments is engaged in traditional insurance, investment-linked insurance and interest-sensitive sales of annuity insurance and providing financial planning services and policy loan services; Property insurance segment is engaged in fire insurance, marine insurance, land and air insurance, liability insurance, financial guarantee insurance, reinsurance and other insurance; Securities segment is engaged in brokerage, dealership, and underwriting business; and Other operating segment of which majority of revenue is from Life insurance. Geographically revenue comes from Taiwan.
54GF Score
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