Digital China HoldingsDCHIF 49 Return-on-Tangible-Equity is 0.73% as of Dec. 2025, which is 78% below its 10-year median of 3.37. GuruFocus rates DCHIF with a GF Score™ of 49/100 and a GF Value™ of $0.48 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 551 Conglomerates companies, Digital China Holdings ranks worse than 75.5% 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. Digital China Holdings's annualized net income for the quarter that ended in Dec. 2025 was $5 Mil. Digital China Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $628 Mil. Therefore, Digital China Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 0.73%.
The historical rank and industry rank for Digital China Holdings's Return-on-Tangible-Equity or its related term are showing as below:
DCHIF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -32.5 Med: 3.37 Max: 9.39
Current: 0.71
During the past 13 years, Digital China Holdings's highest Return-on-Tangible-Equity was 9.39%. The lowest was -32.50%. And the median was 3.37%.
DCHIF's Return-on-Tangible-Equity is ranked worse than 75.5% of 551
companies
in the Conglomerates industry
Industry Median: 7.44
vs DCHIF: 0.71
Digital China Holdings (OTCPK:DCHIF) 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.
Digital China Holdings Return-on-Tangible-Equity Related Terms
Digital China Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Digital China 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.
Digital China Holdings Return-on-Tangible-Equity Chart
DCHIF vs HON, MMM: Return-on-Tangible-Equity Comparison
For the Conglomerates subindustry, Digital China 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.
Digital China Holdings Return-on-Tangible-Equity vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Digital China Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Digital China 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 0.73% mean?
Digital China Holdings (DCHIF) has a Return-on-Tangible-Equity of 0.73% 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 Digital China Holdings and its competitors. This is 78% below median its historical median of 3.37. According to the industry distribution chart, Digital China Holdings ranks #416 out of 551 companies in the Conglomerates industry, placing it in the top 75.5%.
Is Digital China Holdings' Return-on-Tangible-Equity too high?
Digital China Holdings' current Return-on-Tangible-Equity of 0.73% is 78% below median its 10-year median of 3.37. The Conglomerates industry median Return-on-Tangible-Equity is 7.44. Digital China Holdings' value of 0.73% is 90.2% below this industry median. Based on the distribution chart, Digital China Holdings ranks #416 out of 551 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, Digital China Holdings has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Digital China Holdings' Return-on-Tangible-Equity compare to HON and MMM?
According to the Conglomerates industry distribution chart, Digital China Holdings ranks #416 out of 551 companies for Return-on-Tangible-Equity. This places Digital China Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.44. Digital China Holdings' value of 0.73% is 90.2% below this benchmark. While the company's 10-year median is 3.37 vs. the industry median of 7.44, Digital China Holdings 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 Conglomerates company?
The median Return-on-Tangible-Equity among Conglomerates companies is 7.44, based on 551 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. Digital China Holdings's current Return-on-Tangible-Equity of 0.73% is 90.2% 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 Digital China Holdings and its competitors. For the Conglomerates industry, the median Return-on-Tangible-Equity is 7.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital China Holdings's current Return-on-Tangible-Equity is 0.73%, which is 78% below median its own 10-year median of 3.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital China Holdings stock overvalued right now?
Based on GuruFocus' analysis, Digital China Holdings (DCHIF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.48, compared to a current price of $0.25 — trading 48.1% below its estimated fair value. The current Return-on-Tangible-Equity is 0.73%, which is 78% below median its 10-year median of 3.37 and 90.2% below the Conglomerates industry median of 7.44. Digital China Holdings' overall GF Score™ is 49/100 with 6 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 Digital China Holdings (DCHIF), the current Return-on-Tangible-Equity is 0.73% 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 Digital China Holdings (DCHIF) Overvalued in 2026?
Based on GuruFocus' analysis, Digital China Holdings stock appears to be undervalued.
The current stock price of $0.25 is trading 48.1% below its estimated GF Value™ of $0.48.
GuruFocus considers Digital China Holdings to be Possible Value Trap.
Key valuation signals for DCHIF:
Return-on-Tangible-Equity: 0.73% (78% below median its 10-year median of 3.37)
GF Value™: $0.48 vs. price of $0.25 (48.1% below fair value)
Industry Position: 90.2% below the Conglomerates median (#416 of 551)
No single metric tells the full story. See the DCHIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital China Holdings Ltd is a holding company that, through its subsidiaries, provides information technology services. The company organizes itself into three primary segments based on the services provided; Data Intelligence Services Business segment: Integrated Supply Chain Services Business segment: and Fintech Services and Others Business segment. The company generates majority of of its revenue from Fintech Services and Others Business segment.
49GF Score
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