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Hangzhou XZB Tech CoSHSE:603040 +2.11%87 Return-on-Tangible-Asset is 13.92% as of Jun. 2026, which is 11% below its 10-year median of 15.70. GuruFocus rates SHSE:603040 with a GF Score™ of 87/100 and a GF Value™ of ¥24.50 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,338 Vehicles & Parts companies, Hangzhou XZB Tech Co ranks better than 94.39% 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. Hangzhou XZB Tech Co's annualizedNet Income for the quarter that ended in Jun. 2026 was ¥243.6 Mil. Hangzhou XZB Tech Co's average total tangible assets for the quarter that ended in Jun. 2026 was ¥1,750.5 Mil. Therefore, Hangzhou XZB Tech Co's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 13.92%.
The historical rank and industry rank for Hangzhou XZB Tech Co's Return-on-Tangible-Asset or its related term are showing as below:
SHSE:603040'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 13.77 Med: 15.7 Max: 22.54
Current: 14.82
During the past 13 years, Hangzhou XZB Tech Co's highest Return-on-Tangible-Asset was 22.54%. The lowest was 13.77%. And the median was 15.70%.
SHSE:603040's Return-on-Tangible-Asset is ranked better than 94.39% of 1338
companies
in the Vehicles & Parts industry
Industry Median: 3.345
vs SHSE:603040: 14.82
Hangzhou XZB Tech Co (SHSE:603040) 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.
Hangzhou XZB Tech Co Return-on-Tangible-Asset Related Terms
Hangzhou XZB Tech Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Hangzhou XZB Tech Co'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.
Hangzhou XZB Tech Co Return-on-Tangible-Asset Chart
SHSE:603040 vs ORLY, AZO, GPC: Return-on-Tangible-Asset Comparison
For the Auto Parts subindustry, Hangzhou XZB Tech Co'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.
Hangzhou XZB Tech Co Return-on-Tangible-Asset vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hangzhou XZB Tech Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Hangzhou XZB Tech Co'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 four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 13.92% mean?
Hangzhou XZB Tech Co (SHSE:603040) has a Return-on-Tangible-Asset of 13.92% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Hangzhou XZB Tech Co and its competitors. This is 11% below median its historical median of 15.70. Over the past decade, Hangzhou XZB Tech Co's Return-on-Tangible-Asset has ranged from 13.77 to 22.54. According to the industry distribution chart, Hangzhou XZB Tech Co ranks #75 out of 1338 companies in the Vehicles & Parts industry, placing it in the top 5.6%.
Is Hangzhou XZB Tech Co's Return-on-Tangible-Asset too high?
Hangzhou XZB Tech Co's current Return-on-Tangible-Asset of 13.92% is 11% below median its 10-year median of 15.70. Over the past 10 years, this metric has ranged from a low of 13.77 to a high of 22.54. The Vehicles & Parts industry median Return-on-Tangible-Asset is 3.35. Hangzhou XZB Tech Co's value of 13.92% is 316.1% above this industry median. Based on the distribution chart, Hangzhou XZB Tech Co ranks #75 out of 1338 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Hangzhou XZB Tech Co has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hangzhou XZB Tech Co's Return-on-Tangible-Asset compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Hangzhou XZB Tech Co ranks #75 out of 1338 companies for Return-on-Tangible-Asset. This places Hangzhou XZB Tech Co in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.35. Hangzhou XZB Tech Co's value of 13.92% is 316.1% above this benchmark. Historically, Hangzhou XZB Tech Co's own Return-on-Tangible-Asset has ranged from 13.77 to 22.54 over the past decade. While the company's 10-year median is 15.70 vs. the industry median of 3.35, Hangzhou XZB Tech Co 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 Vehicles & Parts company?
The median Return-on-Tangible-Asset among Vehicles & Parts companies is 3.35, based on 1,338 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. Hangzhou XZB Tech Co's current Return-on-Tangible-Asset of 13.92% is 316.1% 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 Hangzhou XZB Tech Co and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Asset is 3.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hangzhou XZB Tech Co's current Return-on-Tangible-Asset is 13.92%, which is 11% below median its own 10-year median of 15.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou XZB Tech Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou XZB Tech Co (SHSE:603040) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥24.50, compared to a current price of ¥50.32 — trading 105.4% above its estimated fair value. The current Return-on-Tangible-Asset is 13.92%, which is 11% below median its 10-year median of 15.70 and 316.1% above the Vehicles & Parts industry median of 3.35. Hangzhou XZB Tech Co's overall GF Score™ is 87/100 with 3 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 Hangzhou XZB Tech Co (SHSE:603040), the current Return-on-Tangible-Asset is 13.92% as of Jun. 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 Hangzhou XZB Tech Co (SHSE:603040) Overvalued in 2026?
Based on GuruFocus' analysis, Hangzhou XZB Tech Co stock appears to be overvalued.
The current stock price of ¥50.32 is trading 105.4% above its estimated GF Value™ of ¥24.50.
GuruFocus considers Hangzhou XZB Tech Co to be Significantly Overvalued.
Key valuation signals for SHSE:603040:
Return-on-Tangible-Asset: 13.92% (11% below median its 10-year median of 15.70)
GF Value™: ¥24.50 vs. price of ¥50.32 (105.4% above fair value)
Industry Position: 316.1% above the Vehicles & Parts median (#75 of 1338)
No single metric tells the full story. See the SHSE:603040 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hangzhou XZB Tech Co Ltd is a China based company engaged in the research and development of valve train systems and parts manufacturing in car industry. The products offered by the company includes valve cotters (collets), valve spring retainers, hydraulic lash adjusters and finger followers, push rods and tappets for heavy-duty diesel engines. In addition, the company also produces precision cold-forming components together with good service for power tools, household electrical appliance, aerospace, machinery and other applications.
87GF Score
Get the complete analysis for SHSE:603040
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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