China Construction BankCICHF -3.69%38 Return-on-Tangible-Equity is 9.44% as of Mar. 2026, which is 22% below its 10-year median of 12.11. GuruFocus rates CICHF with a GF Score™ of 38/100 and a GF Value™ of $0.87 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,523 Banks companies, China Construction Bank ranks worse than 60.14% 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. China Construction Bank's annualized net income for the quarter that ended in Mar. 2026 was $50,081 Mil. China Construction Bank's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $530,785 Mil. Therefore, China Construction Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 9.44%.
The historical rank and industry rank for China Construction Bank's Return-on-Tangible-Equity or its related term are showing as below:
CICHF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.52 Med: 12.11 Max: 15.43
Current: 9.52
During the past 13 years, China Construction Bank's highest Return-on-Tangible-Equity was 15.43%. The lowest was 9.52%. And the median was 12.11%.
CICHF's Return-on-Tangible-Equity is ranked worse than 60.14% of 1523
companies
in the Banks industry
Industry Median: 11.2
vs CICHF: 9.52
China Construction Bank (OTCPK:CICHF) Return-on-Tangible-Equity Explanation
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.
China Construction Bank Return-on-Tangible-Equity Related Terms
China Construction Bank Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for China Construction Bank'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.
China Construction Bank Return-on-Tangible-Equity Chart
CICHF vs JPM, BAC, WFC: Return-on-Tangible-Equity Comparison
For the Banks - Diversified subindustry, China Construction Bank'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.
China Construction Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, China Construction Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where China Construction Bank'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 four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 9.44% mean?
China Construction Bank (CICHF) has a Return-on-Tangible-Equity of 9.44% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on China Construction Bank and its competitors. This is 22% below median its historical median of 12.11. Over the past decade, China Construction Bank's Return-on-Tangible-Equity has ranged from 9.52 to 15.43. According to the industry distribution chart, China Construction Bank ranks #916 out of 1523 companies in the Banks industry, placing it in the top 60.1%.
Is China Construction Bank's Return-on-Tangible-Equity too high?
China Construction Bank's current Return-on-Tangible-Equity of 9.44% is 22% below median its 10-year median of 12.11. Over the past 10 years, this metric has ranged from a low of 9.52 to a high of 15.43. The Banks industry median Return-on-Tangible-Equity is 11.20. China Construction Bank's value of 9.44% is 15.7% below this industry median. Based on the distribution chart, China Construction Bank ranks #916 out of 1523 companies in the Banks industry, which is below the industry midpoint. Overall, China Construction Bank has a GF Score™ of 38/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Construction Bank's Return-on-Tangible-Equity compare to JPM and BAC?
According to the Banks industry distribution chart, China Construction Bank ranks #916 out of 1523 companies for Return-on-Tangible-Equity. This places China Construction Bank in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.20. China Construction Bank's value of 9.44% is 15.7% below this benchmark. Historically, China Construction Bank's own Return-on-Tangible-Equity has ranged from 9.52 to 15.43 over the past decade. While the company's 10-year median is 12.11 vs. the industry median of 11.20, China Construction Bank has consistently been below 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 Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.20, based on 1,523 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. China Construction Bank's current Return-on-Tangible-Equity of 9.44% is 15.7% below 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 China Construction Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Construction Bank's current Return-on-Tangible-Equity is 9.44%, which is 22% below median its own 10-year median of 12.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Construction Bank stock overvalued right now?
Based on GuruFocus' analysis, China Construction Bank (CICHF) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.87, compared to a current price of $1.02 — trading 16.7% above its estimated fair value. The current Return-on-Tangible-Equity is 9.44%, which is 22% below median its 10-year median of 12.11 and 15.7% below the Banks industry median of 11.20. China Construction Bank's overall GF Score™ is 38/100 with 8 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 China Construction Bank (CICHF), the current Return-on-Tangible-Equity is 9.44% 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 China Construction Bank (CICHF) Overvalued in 2026?
Based on GuruFocus' analysis, China Construction Bank stock appears to be overvalued.
The current stock price of $1.02 is trading 16.7% above its estimated GF Value™ of $0.87.
GuruFocus considers China Construction Bank to be Modestly Overvalued.
Key valuation signals for CICHF:
Return-on-Tangible-Equity: 9.44% (22% below median its 10-year median of 12.11)
GF Value™: $0.87 vs. price of $1.02 (16.7% above fair value)
Industry Position: 15.7% below the Banks median (#916 of 1523)
No single metric tells the full story. See the CICHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Construction Bank, headquartered in Beijing, is China's second-largest bank. It went public on the Hong Kong Stock Exchange in 2005 and listed shares in mainland China in 2007. Central Huijin Investment, China's sovereign wealth fund manager, is the largest shareholder with a 57% share. Fullerton Financial Holdings (a subsidiary of Temasek) is the second-largest shareholder with a 4.99% stake. CCB strives to provide customers with comprehensive financial services. The corporate banking, retail banking, and wholesale banking business segments accounted for 22%, 41%, and 34% of profit before tax, respectively, in 2025.
38GF Score
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