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The historical rank and industry rank for Red Avenue New Materials Group Co's Return-on-Tangible-Asset or its related term are showing as below:
SHSE:603650'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 5.18 Med: 8.44 Max: 18.58
Current: 7.13
During the past 12 years, Red Avenue New Materials Group Co's highest Return-on-Tangible-Asset was 18.58%. The lowest was 5.18%. And the median was 8.44%.
SHSE:603650's Return-on-Tangible-Asset is ranked better than 72.12% of 1621
companies
in the Chemicals industry
Industry Median: 3.62
vs SHSE:603650: 7.13
Red Avenue New Materials Group Co (SHSE:603650) 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.
Red Avenue New Materials Group Co Return-on-Tangible-Asset Related Terms
Red Avenue New Materials Group Co Return-on-Tangible-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.
Red Avenue New Materials Group Co Return-on-Tangible-Asset Chart
SHSE:603650 vs LIN, SHW, ECL: Return-on-Tangible-Asset Comparison
For the Specialty Chemicals subindustry, Red Avenue New Materials Group 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.
Red Avenue New Materials Group Co Return-on-Tangible-Asset vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Red Avenue New Materials Group Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Red Avenue New Materials Group 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 9.46% mean?
Red Avenue New Materials Group Co (SHSE:603650) has a Return-on-Tangible-Asset of 9.46% 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 Red Avenue New Materials Group Co and its competitors. This is 12% above median its historical median of 8.44. Over the past decade, Red Avenue New Materials Group Co's Return-on-Tangible-Asset has ranged from 5.18 to 18.58. According to the industry distribution chart, Red Avenue New Materials Group Co ranks #452 out of 1621 companies in the Chemicals industry, placing it in the top 27.9%.
Is Red Avenue New Materials Group Co's Return-on-Tangible-Asset too high?
Red Avenue New Materials Group Co's current Return-on-Tangible-Asset of 9.46% is 12% above median its 10-year median of 8.44. Over the past 10 years, this metric has ranged from a low of 5.18 to a high of 18.58. The Chemicals industry median Return-on-Tangible-Asset is 3.62. Red Avenue New Materials Group Co's value of 9.46% is 161.3% above this industry median. Based on the distribution chart, Red Avenue New Materials Group Co ranks #452 out of 1621 companies in the Chemicals industry, which is above the industry midpoint. Overall, Red Avenue New Materials Group Co has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Red Avenue New Materials Group Co's Return-on-Tangible-Asset compare to LIN and SHW?
According to the Chemicals industry distribution chart, Red Avenue New Materials Group Co ranks #452 out of 1621 companies for Return-on-Tangible-Asset. This puts Red Avenue New Materials Group Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.62. Red Avenue New Materials Group Co's value of 9.46% is 161.3% above this benchmark. Historically, Red Avenue New Materials Group Co's own Return-on-Tangible-Asset has ranged from 5.18 to 18.58 over the past decade. While the company's 10-year median is 8.44 vs. the industry median of 3.62, Red Avenue New Materials Group 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 Chemicals company?
The median Return-on-Tangible-Asset among Chemicals companies is 3.62, based on 1,621 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. Red Avenue New Materials Group Co's current Return-on-Tangible-Asset of 9.46% is 161.3% 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 Red Avenue New Materials Group Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Asset is 3.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Red Avenue New Materials Group Co's current Return-on-Tangible-Asset is 9.46%, which is 12% above median its own 10-year median of 8.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Avenue New Materials Group Co stock overvalued right now?
Based on GuruFocus' analysis, Red Avenue New Materials Group Co (SHSE:603650) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥41.68, compared to a current price of ¥65.22 — trading 56.5% above its estimated fair value. The current Return-on-Tangible-Asset is 9.46%, which is 12% above median its 10-year median of 8.44 and 161.3% above the Chemicals industry median of 3.62. Red Avenue New Materials Group Co's overall GF Score™ is 75/100 with 6 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 Red Avenue New Materials Group Co (SHSE:603650), the current Return-on-Tangible-Asset is 9.46% 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 Red Avenue New Materials Group Co (SHSE:603650) Overvalued in 2026?
Based on GuruFocus' analysis, Red Avenue New Materials Group Co stock appears to be overvalued.
The current stock price of ¥65.22 is trading 56.5% above its estimated GF Value™ of ¥41.68.
GuruFocus considers Red Avenue New Materials Group Co to be Significantly Overvalued.
Key valuation signals for SHSE:603650:
Return-on-Tangible-Asset: 9.46% (12% above median its 10-year median of 8.44)
GF Value™: ¥41.68 vs. price of ¥65.22 (56.5% above fair value)
Industry Position: 161.3% above the Chemicals median (#452 of 1621)
No single metric tells the full story. See the SHSE:603650 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Red Avenue New Materials Group Co Ltd is a China-based company engages in the manufacture and sale of chemical products. The company produces rubber and plastic chemical additives and other products. The products manufactured by the company include polyethylene glycol, silica, alkylphenol disulfides, and cobalt neodecanoate. Its main products are phenolic resins for rubber, including tackifying resins, reinforcing resins and adhesive resins.
75GF Score
Get the complete analysis for SHSE:603650
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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