Euro Tech Holdings CoCLWT -12.43%61 Return-on-Tangible-Equity is 3.93% as of Dec. 2025, which is 28% above its 10-year median of 3.06. GuruFocus rates CLWT with a GF Score™ of 61/100 and a GF Value™ of $1.16 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,969 Industrial Products companies, Euro Tech Holdings Co ranks worse than 72.82% 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. Euro Tech Holdings Co's annualized net income for the quarter that ended in Dec. 2025 was $0.57 Mil. Euro Tech Holdings Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $14.47 Mil. Therefore, Euro Tech Holdings Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 3.93%.
The historical rank and industry rank for Euro Tech Holdings Co's Return-on-Tangible-Equity or its related term are showing as below:
CLWT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1.09 Med: 3.06 Max: 13.41
Current: 1.08
During the past 13 years, Euro Tech Holdings Co's highest Return-on-Tangible-Equity was 13.41%. The lowest was -1.09%. And the median was 3.06%.
CLWT's Return-on-Tangible-Equity is ranked worse than 72.82% of 2969
companies
in the Industrial Products industry
Industry Median: 6.72
vs CLWT: 1.08
Euro Tech Holdings Co (NAS:CLWT) 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.
Euro Tech Holdings Co Return-on-Tangible-Equity Related Terms
Euro Tech Holdings Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Euro Tech Holdings 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.
Euro Tech Holdings Co Return-on-Tangible-Equity Chart
CLWT vs EESH, BNET, QWTR: Return-on-Tangible-Equity Comparison
For the Pollution & Treatment Controls subindustry, Euro Tech Holdings 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.
Euro Tech Holdings Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Euro Tech Holdings Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Euro Tech Holdings 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 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 3.93% mean?
Euro Tech Holdings Co (CLWT) has a Return-on-Tangible-Equity of 3.93% 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 Euro Tech Holdings Co and its competitors. This is 28% above median its historical median of 3.06. According to the industry distribution chart, Euro Tech Holdings Co ranks #2162 out of 2969 companies in the Industrial Products industry, placing it in the top 72.8%.
Is Euro Tech Holdings Co's Return-on-Tangible-Equity too high?
Euro Tech Holdings Co's current Return-on-Tangible-Equity of 3.93% is 28% above median its 10-year median of 3.06. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Euro Tech Holdings Co's value of 3.93% is 41.5% below this industry median. Based on the distribution chart, Euro Tech Holdings Co ranks #2162 out of 2969 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Euro Tech Holdings Co has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Euro Tech Holdings Co's Return-on-Tangible-Equity compare to EESH and BNET?
According to the Industrial Products industry distribution chart, Euro Tech Holdings Co ranks #2162 out of 2969 companies for Return-on-Tangible-Equity. This places Euro Tech Holdings Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.72. Euro Tech Holdings Co's value of 3.93% is 41.5% below this benchmark. While the company's 10-year median is 3.06 vs. the industry median of 6.72, Euro Tech Holdings Co 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,969 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. Euro Tech Holdings Co's current Return-on-Tangible-Equity of 3.93% is 41.5% 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 Euro Tech Holdings Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Euro Tech Holdings Co's current Return-on-Tangible-Equity is 3.93%, which is 28% above median its own 10-year median of 3.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Euro Tech Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Euro Tech Holdings Co (CLWT) is currently considered Modestly Overvalued. The stock's GF Value™ is $1.16, compared to a current price of $1.49 — trading 28.4% above its estimated fair value. The current Return-on-Tangible-Equity is 3.93%, which is 28% above median its 10-year median of 3.06 and 41.5% below the Industrial Products industry median of 6.72. Euro Tech Holdings Co's overall GF Score™ is 61/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Euro Tech Holdings Co (CLWT), the current Return-on-Tangible-Equity is 3.93% 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 Euro Tech Holdings Co (CLWT) Overvalued in 2026?
Based on GuruFocus' analysis, Euro Tech Holdings Co stock appears to be overvalued.
The current stock price of $1.49 is trading 28.4% above its estimated GF Value™ of $1.16.
GuruFocus considers Euro Tech Holdings Co to be Modestly Overvalued.
Key valuation signals for CLWT:
Return-on-Tangible-Equity: 3.93% (28% above median its 10-year median of 3.06)
GF Value™: $1.16 vs. price of $1.49 (28.4% above fair value)
Industry Position: 41.5% below the Industrial Products median (#2162 of 2969)
No single metric tells the full story. See the CLWT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Euro Tech Holdings Co Ltd is mainly a distributor of a wide range of water treatment equipment, laboratory instruments, analyzers, test kits, and related supplies, and power generation equipment, including recorders and power quality analyzers. The Company acts as an exclusive or non-exclusive distributor for manufacturers of such equipment to commercial customers and governmental agencies in Hong Kong and mainland China, as well as commercial customers in Macau. It has two operating segments: Trading and manufacturing, which generate maximum revenue and act as a distributor of water treatment equipment, laboratory instruments, analyzers, test kits, related supplies, and power generation equipment; and the Engineering segment. The Company generates maximum revenue from the PRC.
61GF Score
Get the complete analysis for CLWT
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