Lutian Machinery Co (SHSE:605259) Return-on-Tangible-Asset: 6.73% (As of Mar. 2026) — 27% Below Median

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SHSE:605259 Lutian Machinery Co Ltd SHSE:605259
77 GF Score
Price ¥17.70
GF Value ¥23.90
Valuation Modestly Undervalued
! 4 Warning Signs
View Full Analysis

What is Lutian Machinery Co Return-on-Tangible-Asset?

Lutian Machinery Co SHSE:605259 -2.64% 77 Return-on-Tangible-Asset is 6.73% as of Mar. 2026, which is 27% below its 10-year median of 9.21. GuruFocus rates SHSE:605259 with a GF Score™ of 77/100 and a GF Value™ of ¥23.90 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 3,080 Industrial Products companies, Lutian Machinery Co ranks better than 81.33% 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. Lutian Machinery Co's annualized Net Income for the quarter that ended in Mar. 2026 was ¥180 Mil. Lutian Machinery Co's average total tangible assets for the quarter that ended in Mar. 2026 was ¥2,672 Mil. Therefore, Lutian Machinery Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 6.73%.

The historical rank and industry rank for Lutian Machinery Co's Return-on-Tangible-Asset or its related term are showing as below:

SHSE:605259' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 4.91   Med: 9.21   Max: 11.03
Current: 9

During the past 9 years, Lutian Machinery Co's highest Return-on-Tangible-Asset was 11.03%. The lowest was 4.91%. And the median was 9.21%.

SHSE:605259's Return-on-Tangible-Asset is ranked better than
81.33% of 3080 companies
in the Industrial Products industry
Industry Median: 3.355 vs SHSE:605259: 9.00

Lutian Machinery Co  (SHSE:605259) 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 company’s 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 company’s 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.


Lutian Machinery Co Return-on-Tangible-Asset Related Terms


Lutian Machinery Co Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for Lutian Machinery 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.

Lutian Machinery Co Return-on-Tangible-Asset Chart

Lutian Machinery Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only 10.45 10.80 8.48 7.76 9.21

Lutian Machinery Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.72 12.80 9.58 7.10 6.73

SHSE:605259 vs GEV, ETN, PH: Return-on-Tangible-Asset Comparison

For the Specialty Industrial Machinery subindustry, Lutian Machinery 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.


Lutian Machinery Co Return-on-Tangible-Asset vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Lutian Machinery Co's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Lutian Machinery Co's Return-on-Tangible-Asset falls into.


SHSE:605259
77GF Score
Lutian Machinery Co Ltd SHSE:605259
Return-on-Tangible-Asset is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Lutian Machinery Co Return-on-Tangible-Asset Calculation

Lutian Machinery Co's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=245.527/( (2655.377+2673.712)/ 2 )
=245.527/2664.5445
=9.21 %

Lutian Machinery Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=179.836/( (2673.712+2670.591)/ 2 )
=179.836/2672.1515
=6.73 %

* 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 (Mar. 2026) net income data.

What does a Return-on-Tangible-Asset of 6.73% mean?
Lutian Machinery Co (SHSE:605259) has a Return-on-Tangible-Asset of 6.73% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Lutian Machinery Co and its competitors. This is 27% below median its historical median of 9.21. Over the past decade, Lutian Machinery Co's Return-on-Tangible-Asset has ranged from 4.91 to 11.03. According to the industry distribution chart, Lutian Machinery Co ranks #575 out of 3080 companies in the Industrial Products industry, placing it in the top 18.7%.
Is Lutian Machinery Co's Return-on-Tangible-Asset too high?
Lutian Machinery Co's current Return-on-Tangible-Asset of 6.73% is 27% below median its 10-year median of 9.21. Over the past 10 years, this metric has ranged from a low of 4.91 to a high of 11.03. The Industrial Products industry median Return-on-Tangible-Asset is 3.36. Lutian Machinery Co's value of 6.73% is 100.6% above this industry median. Based on the distribution chart, Lutian Machinery Co ranks #575 out of 3080 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Lutian Machinery Co has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lutian Machinery Co's Return-on-Tangible-Asset compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Lutian Machinery Co ranks #575 out of 3080 companies for Return-on-Tangible-Asset. This places Lutian Machinery Co in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.36. Lutian Machinery Co's value of 6.73% is 100.6% above this benchmark. Historically, Lutian Machinery Co's own Return-on-Tangible-Asset has ranged from 4.91 to 11.03 over the past decade. While the company's 10-year median is 9.21 vs. the industry median of 3.36, Lutian Machinery 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 an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.36, based on 3,080 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. Lutian Machinery Co's current Return-on-Tangible-Asset of 6.73% is 100.6% 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 Lutian Machinery Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lutian Machinery Co's current Return-on-Tangible-Asset is 6.73%, which is 27% below median its own 10-year median of 9.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lutian Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Lutian Machinery Co (SHSE:605259) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥23.90, compared to a current price of ¥17.70 — trading 25.9% below its estimated fair value. The current Return-on-Tangible-Asset is 6.73%, which is 27% below median its 10-year median of 9.21 and 100.6% above the Industrial Products industry median of 3.36. Lutian Machinery Co's overall GF Score™ is 77/100 with 4 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 Lutian Machinery Co (SHSE:605259), the current Return-on-Tangible-Asset is 6.73% as of Mar. 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 Lutian Machinery Co (SHSE:605259) Overvalued in 2026?

Based on GuruFocus' analysis, Lutian Machinery Co stock appears to be undervalued. The current stock price of ¥17.70 is trading 25.9% below its estimated GF Value™ of ¥23.90. GuruFocus considers Lutian Machinery Co to be Modestly Undervalued.

Key valuation signals for SHSE:605259:

  • Return-on-Tangible-Asset: 6.73% (27% below median its 10-year median of 9.21)
  • GF Value™: ¥23.90 vs. price of ¥17.70 (25.9% below fair value)
  • GF Score™: 77/100 with 4 warning signs
  • Industry Position: 100.6% above the Industrial Products median (#575 of 3080)

No single metric tells the full story. See the SHSE:605259 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Lutian Machinery Co Business Description

Address No. 1, Lvtian Avenue, Hengjie Town, Luqiao District, Zhejiang Province, Taizhou, CHN, 318056
Lutian Machinery Co Ltd research and development, production and sales of general power machinery products mainly including generator sets, water pump units and engines and high-pressure cleaner products.
77GF Score

Get the complete analysis for SHSE:605259

Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥17.70
Price
¥23.90
GF Value