China Merchants Bank CoCIHKY +2.89%63 Return-on-Tangible-Equity is 12.13% as of Mar. 2026, which is 22% below its 10-year median of 15.58. GuruFocus rates CIHKY with a GF Scoreâ„¢ of 63/100 and a GF Valueâ„¢ of $32.20 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,523 Banks companies, China Merchants Bank Co ranks better than 54.56% 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 Merchants Bank Co's annualized net income for the quarter that ended in Mar. 2026 was $21,968 Mil. China Merchants Bank Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $181,113 Mil. Therefore, China Merchants Bank Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.13%.
The historical rank and industry rank for China Merchants Bank Co's Return-on-Tangible-Equity or its related term are showing as below:
CIHKY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.01 Med: 15.58 Max: 16.88
Current: 12.01
During the past 13 years, China Merchants Bank Co's highest Return-on-Tangible-Equity was 16.88%. The lowest was 12.01%. And the median was 15.58%.
CIHKY's Return-on-Tangible-Equity is ranked better than 54.56% of 1523
companies
in the Banks industry
Industry Median: 11.19
vs CIHKY: 12.01
China Merchants Bank Co (OTCPK:CIHKY) 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 Merchants Bank Co Return-on-Tangible-Equity Related Terms
China Merchants Bank Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for China Merchants Bank Co'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 Merchants Bank Co Return-on-Tangible-Equity Chart
China Merchants Bank Co Return-on-Tangible-Equity Competitor Comparison
For the Banks - Regional subindustry, China Merchants Bank Co'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 Merchants Bank Co Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, China Merchants Bank Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where China Merchants Bank Co'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 12.13% mean?
China Merchants Bank Co (CIHKY) has a Return-on-Tangible-Equity of 12.13% 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 Merchants Bank Co and its competitors. This is 22% below median its historical median of 15.58. Over the past decade, China Merchants Bank Co's Return-on-Tangible-Equity has ranged from 12.01 to 16.88. According to the industry distribution chart, China Merchants Bank Co ranks #692 out of 1523 companies in the Banks industry, placing it in the top 45.4%.
Is China Merchants Bank Co's Return-on-Tangible-Equity too high?
China Merchants Bank Co's current Return-on-Tangible-Equity of 12.13% is 22% below median its 10-year median of 15.58. Over the past 10 years, this metric has ranged from a low of 12.01 to a high of 16.88. The Banks industry median Return-on-Tangible-Equity is 11.19. China Merchants Bank Co's value of 12.13% is 8.4% above this industry median. Based on the distribution chart, China Merchants Bank Co ranks #692 out of 1523 companies in the Banks industry, which is above the industry midpoint. Overall, China Merchants Bank Co has a GF Scoreâ„¢ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Merchants Bank Co's Return-on-Tangible-Equity compare to competitors?
According to the Banks industry distribution chart, China Merchants Bank Co ranks #692 out of 1523 companies for Return-on-Tangible-Equity. This puts China Merchants Bank Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.19. China Merchants Bank Co's value of 12.13% is 8.4% above this benchmark. Historically, China Merchants Bank Co's own Return-on-Tangible-Equity has ranged from 12.01 to 16.88 over the past decade. While the company's 10-year median is 15.58 vs. the industry median of 11.19, China Merchants Bank 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-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.19, 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 Merchants Bank Co's current Return-on-Tangible-Equity of 12.13% is 8.4% 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 China Merchants Bank Co and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Merchants Bank Co's current Return-on-Tangible-Equity is 12.13%, which is 22% below median its own 10-year median of 15.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Merchants Bank Co stock overvalued right now?
Based on GuruFocus' analysis, China Merchants Bank Co (CIHKY) is currently considered Modestly Undervalued. The stock's GF Value™ is $32.20, compared to a current price of $28.81 — trading 10.5% below its estimated fair value. The current Return-on-Tangible-Equity is 12.13%, which is 22% below median its 10-year median of 15.58 and 8.4% above the Banks industry median of 11.19. China Merchants Bank Co's overall GF Score™ is 63/100 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 China Merchants Bank Co (CIHKY), the current Return-on-Tangible-Equity is 12.13% 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 Merchants Bank Co (CIHKY) Overvalued in 2026?
Based on GuruFocus' analysis, China Merchants Bank Co stock appears to be undervalued.
The current stock price of $28.81 is trading 10.5% below its estimated GF Value™ of $32.20.
GuruFocus considers China Merchants Bank Co to be Modestly Undervalued.
Key valuation signals for CIHKY:
Return-on-Tangible-Equity: 12.13% (22% below median its 10-year median of 15.58)
GF Value™: $32.20 vs. price of $28.81 (10.5% below fair value)
Industry Position: 8.4% above the Banks median (#692 of 1523)
No single metric tells the full story. See the CIHKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Merchants Bank was founded in 1987 and is headquartered in Shenzhen. The bank is China's seventh-largest listed bank by assets, with the largest distribution network among China's joint-stock banks. CMB's network has been expanding rapidly. Its outlets are located mainly in China's more developed areas, including the Pearl River and Yangtze River deltas. The firm has 18% and 82% of its shares listed on the Hong Kong and Shanghai exchanges, respectively. It has no foreign strategic investors. China Merchants Group is its largest shareholder, with a 30% stake. Retail banking, corporate banking, and wholesale banking accounted for 49%, 51%, and 0% of total profit before tax, respectively, and 40%, 58%, and 2% of total revenue in 2024.
63GF Score
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