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Shenzhen SDMC Technology CoFRA:6RJ +4.85%28 Return-on-Tangible-Equity is 22.86% as of Dec. 2025, which is 2% above its 10-year median of 22.52. GuruFocus rates FRA:6RJ with a GF Score™ of 28/100. The stock has 3 warning signs investors should review. Among 2,383 Hardware companies, Shenzhen SDMC Technology Co ranks better than 86.82% 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. Shenzhen SDMC Technology Co's annualized net income for the quarter that ended in Dec. 2025 was €33.0 Mil. Shenzhen SDMC Technology Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €144.3 Mil. Therefore, Shenzhen SDMC Technology Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 22.86%.
The historical rank and industry rank for Shenzhen SDMC Technology Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:6RJ'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.11 Med: 22.52 Max: 36.03
Current: 21.2
During the past 4 years, Shenzhen SDMC Technology Co's highest Return-on-Tangible-Equity was 36.03%. The lowest was 14.11%. And the median was 22.52%.
FRA:6RJ's Return-on-Tangible-Equity is ranked better than 86.82% of 2383
companies
in the Hardware industry
Industry Median: 5.4
vs FRA:6RJ: 21.20
Shenzhen SDMC Technology Co (FRA:6RJ) 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.
Shenzhen SDMC Technology Co Return-on-Tangible-Equity Related Terms
Shenzhen SDMC Technology Co Return-on-Tangible-Equity Historical Data
* 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.
Shenzhen SDMC Technology Co Return-on-Tangible-Equity Chart
FRA:6RJ vs CSCO, MSI, HPE: Return-on-Tangible-Equity Comparison
For the Communication Equipment subindustry, Shenzhen SDMC Technology 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.
Shenzhen SDMC Technology Co Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Shenzhen SDMC Technology Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Shenzhen SDMC Technology 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 22.86% mean?
Shenzhen SDMC Technology Co (FRA:6RJ) has a Return-on-Tangible-Equity of 22.86% 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 Shenzhen SDMC Technology Co and its competitors. This is near median its historical median of 22.52. Over the past decade, Shenzhen SDMC Technology Co's Return-on-Tangible-Equity has ranged from 14.11 to 36.03. According to the industry distribution chart, Shenzhen SDMC Technology Co ranks #314 out of 2383 companies in the Hardware industry, placing it in the top 13.2%.
Is Shenzhen SDMC Technology Co's Return-on-Tangible-Equity too high?
Shenzhen SDMC Technology Co's current Return-on-Tangible-Equity of 22.86% is near median its 10-year median of 22.52. Over the past 10 years, this metric has ranged from a low of 14.11 to a high of 36.03. The Hardware industry median Return-on-Tangible-Equity is 5.40. Shenzhen SDMC Technology Co's value of 22.86% is 323.3% above this industry median. Based on the distribution chart, Shenzhen SDMC Technology Co ranks #314 out of 2383 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Shenzhen SDMC Technology Co has a GF Score™ of 28/100, reflecting its overall financial health beyond just this single metric.
How does Shenzhen SDMC Technology Co's Return-on-Tangible-Equity compare to CSCO and MSI?
According to the Hardware industry distribution chart, Shenzhen SDMC Technology Co ranks #314 out of 2383 companies for Return-on-Tangible-Equity. This places Shenzhen SDMC Technology Co in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.40. Shenzhen SDMC Technology Co's value of 22.86% is 323.3% above this benchmark. Historically, Shenzhen SDMC Technology Co's own Return-on-Tangible-Equity has ranged from 14.11 to 36.03 over the past decade. While the company's 10-year median is 22.52 vs. the industry median of 5.40, Shenzhen SDMC Technology 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.40, based on 2,383 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. Shenzhen SDMC Technology Co's current Return-on-Tangible-Equity of 22.86% is 323.3% 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 Shenzhen SDMC Technology Co and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen SDMC Technology Co's current Return-on-Tangible-Equity is 22.86%, which is near median its own 10-year median of 22.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen SDMC Technology Co stock overvalued right now?
Shenzhen SDMC Technology Co (FRA:6RJ) has a current Return-on-Tangible-Equity of 22.86%. The current Return-on-Tangible-Equity is 22.86%, which is near median its 10-year median of 22.52 and 323.3% above the Hardware industry median of 5.40. Shenzhen SDMC Technology Co's overall GF Score™ is 28/100 with 3 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 Shenzhen SDMC Technology Co (FRA:6RJ), the current Return-on-Tangible-Equity is 22.86% 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.
Shenzhen SDMC Technology Co Ltd is principally engaged in (i) sales of digital video products and network communication products, and (ii) provision of system platforms and services. The majority of revenue was mainly generated from sales of hardware products, namely digital video devices and network communication devices. Its other hardware products include media streaming terminals, speakers, projectors, cameras, optical network terminals, Wi-Fi routers, and cable modems. The company also develops system platforms including Cedar, XHome, and XMediaTV. Geographically, the maximum revenue is generated from Asia.
28GF Score
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