AAC Technologies HoldingsAACAY -6.76%92 Return-on-Tangible-Equity is 16.67% as of Dec. 2025, which is 61% above its 10-year median of 10.36. GuruFocus rates AACAY with a GF Score™ of 92/100 and a GF Value™ of $6.05 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,377 Hardware companies, AAC Technologies Holdings ranks better than 74.59% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. AAC Technologies Holdings's annualized net income for the quarter that ended in Dec. 2025 was $465 Mil. AAC Technologies Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $2,787 Mil. Therefore, AAC Technologies Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 16.67%.
The historical rank and industry rank for AAC Technologies Holdings's Return-on-Tangible-Equity or its related term are showing as below:
AACAY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.5 Med: 10.36 Max: 35.04
Current: 13
During the past 13 years, AAC Technologies Holdings's highest Return-on-Tangible-Equity was 35.04%. The lowest was 3.50%. And the median was 10.36%.
AACAY's Return-on-Tangible-Equity is ranked better than 74.59% of 2377
companies
in the Hardware industry
Industry Median: 5.27
vs AACAY: 13.00
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
AAC Technologies Holdings Return-on-Tangible-Equity Related Terms
AAC Technologies Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for AAC Technologies Holdings's Return-on-Tangible-Equity 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.
AACAY vs CSCO, CIEN, MSI: Return-on-Tangible-Equity Comparison
For the Communication Equipment subindustry, AAC Technologies Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
AAC Technologies Holdings Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, AAC Technologies Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where AAC Technologies Holdings's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 16.67% mean?
AAC Technologies Holdings (AACAY) has a Return-on-Tangible-Equity of 16.67% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AAC Technologies Holdings and its competitors. This is 61% above median its historical median of 10.36. Over the past decade, AAC Technologies Holdings' Return-on-Tangible-Equity has ranged from 3.50 to 35.04. According to the industry distribution chart, AAC Technologies Holdings ranks #604 out of 2377 companies in the Hardware industry, placing it in the top 25.4%.
Is AAC Technologies Holdings' Return-on-Tangible-Equity too high?
AAC Technologies Holdings' current Return-on-Tangible-Equity of 16.67% is 61% above median its 10-year median of 10.36. Over the past 10 years, this metric has ranged from a low of 3.50 to a high of 35.04. The Hardware industry median Return-on-Tangible-Equity is 5.27. AAC Technologies Holdings' value of 16.67% is 216.3% above this industry median. Based on the distribution chart, AAC Technologies Holdings ranks #604 out of 2377 companies in the Hardware industry, which is above the industry midpoint. Overall, AAC Technologies Holdings has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AAC Technologies Holdings' Return-on-Tangible-Equity compare to CSCO and CIEN?
According to the Hardware industry distribution chart, AAC Technologies Holdings ranks #604 out of 2377 companies for Return-on-Tangible-Equity. This puts AAC Technologies Holdings in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.27. AAC Technologies Holdings' value of 16.67% is 216.3% above this benchmark. Historically, AAC Technologies Holdings' own Return-on-Tangible-Equity has ranged from 3.50 to 35.04 over the past decade. While the company's 10-year median is 10.36 vs. the industry median of 5.27, AAC Technologies Holdings 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-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.27, based on 2,377 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AAC Technologies Holdings's current Return-on-Tangible-Equity of 16.67% is 216.3% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AAC Technologies Holdings and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAC Technologies Holdings's current Return-on-Tangible-Equity is 16.67%, which is 61% above median its own 10-year median of 10.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AAC Technologies Holdings stock overvalued right now?
Based on GuruFocus' analysis, AAC Technologies Holdings (AACAY) is currently considered Modestly Undervalued. The stock's GF Value™ is $6.05, compared to a current price of $5.10 — trading 15.7% below its estimated fair value. The current Return-on-Tangible-Equity is 16.67%, which is 61% above median its 10-year median of 10.36 and 216.3% above the Hardware industry median of 5.27. AAC Technologies Holdings' overall GF Score™ is 92/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For AAC Technologies Holdings (AACAY), the current Return-on-Tangible-Equity is 16.67% 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 AAC Technologies Holdings (AACAY) Overvalued in 2026?
Based on GuruFocus' analysis, AAC Technologies Holdings stock appears to be undervalued.
The current stock price of $5.10 is trading 15.7% below its estimated GF Value™ of $6.05.
GuruFocus considers AAC Technologies Holdings to be Modestly Undervalued.
Key valuation signals for AACAY:
Return-on-Tangible-Equity: 16.67% (61% above median its 10-year median of 10.36)
GF Value™: $6.05 vs. price of $5.10 (15.7% below fair value)
Industry Position: 216.3% above the Hardware median (#604 of 2377)
No single metric tells the full story. See the AACAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AAC Technologies is one of the world's largest manufacturers of miniature acoustic components, such as speakers and receivers, primarily for smartphones. Founded in 1993, the company has since expanded into the production of other handset components, such as electromagnetic drives (haptics), precision mechanical, lenses and camera modules, sensors, and MEMS microphones. AAC is headquartered in Shenzhen, China, and runs factories in China, Vietnam, Czechia, and Malaysia. It employed 44,181 people as at June 30, 2025.
92GF Score
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