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Hongli GroupHLP -2.59%41 Return-on-Tangible-Asset is 2.91% as of Dec. 2025, which is 74% below its 10-year median of 11.21. GuruFocus rates HLP with a GF Score™ of 41/100 and a GF Value™ of $0.35 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 634 Steel companies, Hongli Group ranks better than 59.31% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Hongli Group's annualizedNet Income for the quarter that ended in Dec. 2025 was $1.91 Mil. Hongli Group's average total tangible assets for the quarter that ended in Dec. 2025 was $65.54 Mil. Therefore, Hongli Group's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 2.91%.
The historical rank and industry rank for Hongli Group's Return-on-Tangible-Asset or its related term are showing as below:
HLP'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -4.27 Med: 11.21 Max: 22.58
Current: 3.04
During the past 7 years, Hongli Group's highest Return-on-Tangible-Asset was 22.58%. The lowest was -4.27%. And the median was 11.21%.
HLP's Return-on-Tangible-Asset is ranked better than 59.31% of 634
companies
in the Steel industry
Industry Median: 2.015
vs HLP: 3.04
Hongli Group (NAS:HLP) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Hongli Group Return-on-Tangible-Asset Related Terms
Hongli Group Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Hongli Group's Return-on-Tangible-Asset 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.
HLP vs HUDI, ZKIN, LUD: Return-on-Tangible-Asset Comparison
For the Steel subindustry, Hongli Group's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-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.
Hongli Group Return-on-Tangible-Asset vs Steel Industry
For the Steel industry and Basic Materials sector, Hongli Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Hongli Group's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets 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.
What does a Return-on-Tangible-Asset of 2.91% mean?
Hongli Group (HLP) has a Return-on-Tangible-Asset of 2.91% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Hongli Group and its competitors. This is 74% below median its historical median of 11.21. According to the industry distribution chart, Hongli Group ranks #258 out of 634 companies in the Steel industry, placing it in the top 40.7%.
Is Hongli Group's Return-on-Tangible-Asset too high?
Hongli Group's current Return-on-Tangible-Asset of 2.91% is 74% below median its 10-year median of 11.21. The Steel industry median Return-on-Tangible-Asset is 2.02. Hongli Group's value of 2.91% is 44.4% above this industry median. Based on the distribution chart, Hongli Group ranks #258 out of 634 companies in the Steel industry, which is above the industry midpoint. Overall, Hongli Group has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hongli Group's Return-on-Tangible-Asset compare to HUDI and ZKIN?
According to the Steel industry distribution chart, Hongli Group ranks #258 out of 634 companies for Return-on-Tangible-Asset. This puts Hongli Group in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.02. Hongli Group's value of 2.91% is 44.4% above this benchmark. While the company's 10-year median is 11.21 vs. the industry median of 2.02, Hongli 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 Return-on-Tangible-Asset for a Steel company?
The median Return-on-Tangible-Asset among Steel companies is 2.02, based on 634 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hongli Group's current Return-on-Tangible-Asset of 2.91% is 44.4% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Hongli Group and its competitors. For the Steel industry, the median Return-on-Tangible-Asset is 2.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongli Group's current Return-on-Tangible-Asset is 2.91%, which is 74% below median its own 10-year median of 11.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongli Group stock overvalued right now?
Based on GuruFocus' analysis, Hongli Group (HLP) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.35, compared to a current price of $1.09 — trading 211.4% above its estimated fair value. The current Return-on-Tangible-Asset is 2.91%, which is 74% below median its 10-year median of 11.21 and 44.4% above the Steel industry median of 2.02. Hongli Group's overall GF Score™ is 41/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Hongli Group (HLP), the current Return-on-Tangible-Asset is 2.91% 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 Hongli Group (HLP) Overvalued in 2026?
Based on GuruFocus' analysis, Hongli Group stock appears to be overvalued.
The current stock price of $1.09 is trading 211.4% above its estimated GF Value™ of $0.35.
GuruFocus considers Hongli Group to be Significantly Overvalued.
Key valuation signals for HLP:
Return-on-Tangible-Asset: 2.91% (74% below median its 10-year median of 11.21)
GF Value™: $0.35 vs. price of $1.09 (211.4% above fair value)
Industry Position: 44.4% above the Steel median (#258 of 634)
No single metric tells the full story. See the HLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongli Group Inc is an offshore holding company. Through its subsidiaries, it is engaged in the cold-rolled steel profile manufacturing in China. Its main business operation focuses on the design, production, deep processing, and sales of custom-made profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture, and transportation industries. The group operates in a single segment, which manufactures and sells agricultural machinery cab assemblies, construction machinery cab assemblies, excavator cab assemblies, and special-shaped steel pipes. It generates the majority of its reveneue from PRC.
41GF Score
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