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BII Railway Transportation Technology Holdings Co (FRA:CN6) 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.
BII Railway Transportation Technology Holdings Co Return-on-Tangible-Equity Related Terms
BII Railway Transportation Technology Holdings 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.
BII Railway Transportation Technology Holdings Co Return-on-Tangible-Equity Chart
BII Railway Transportation Technology Holdings Co Annual Data
FRA:CN6 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, BII Railway Transportation Technology 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.
BII Railway Transportation Technology Holdings Co Return-on-Tangible-Equity vs Software Industry
* 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 10.25% mean?
BII Railway Transportation Technology Holdings Co (FRA:CN6) has a Return-on-Tangible-Equity of 10.25% 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 BII Railway Transportation Technology Holdings Co and its competitors. This is 40% above median its historical median of 7.34. Over the past decade, BII Railway Transportation Technology Holdings Co's Return-on-Tangible-Equity has ranged from 1.76 to 11.65. According to the industry distribution chart, BII Railway Transportation Technology Holdings Co ranks #1388 out of 2483 companies in the Software industry, placing it in the top 55.9%.
Is BII Railway Transportation Technology Holdings Co's Return-on-Tangible-Equity too high?
BII Railway Transportation Technology Holdings Co's current Return-on-Tangible-Equity of 10.25% is 40% above median its 10-year median of 7.34. Over the past 10 years, this metric has ranged from a low of 1.76 to a high of 11.65. The Software industry median Return-on-Tangible-Equity is 9.68. BII Railway Transportation Technology Holdings Co's value of 10.25% is 5.9% above this industry median. Based on the distribution chart, BII Railway Transportation Technology Holdings Co ranks #1388 out of 2483 companies in the Software industry, which is below the industry midpoint. Overall, BII Railway Transportation Technology Holdings Co has a GF Score™ of 53/100, reflecting its overall financial health beyond just this single metric.
How does BII Railway Transportation Technology Holdings Co's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, BII Railway Transportation Technology Holdings Co ranks #1388 out of 2483 companies for Return-on-Tangible-Equity. This places BII Railway Transportation Technology Holdings Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 9.68. BII Railway Transportation Technology Holdings Co's value of 10.25% is 5.9% above this benchmark. Historically, BII Railway Transportation Technology Holdings Co's own Return-on-Tangible-Equity has ranged from 1.76 to 11.65 over the past decade. While the company's 10-year median is 7.34 vs. the industry median of 9.68, BII Railway Transportation Technology Holdings 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 9.68, based on 2,483 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. BII Railway Transportation Technology Holdings Co's current Return-on-Tangible-Equity of 10.25% is 5.9% 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 BII Railway Transportation Technology Holdings Co and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BII Railway Transportation Technology Holdings Co's current Return-on-Tangible-Equity is 10.25%, which is 40% above median its own 10-year median of 7.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BII Railway Transportation Technology Holdings Co stock overvalued right now?
BII Railway Transportation Technology Holdings Co (FRA:CN6) has a current Return-on-Tangible-Equity of 10.25%. The stock's GF Value™ is €0.03, compared to a current price of €0.02 — trading 38.3% below its estimated fair value. The current Return-on-Tangible-Equity is 10.25%, which is 40% above median its 10-year median of 7.34 and 5.9% above the Software industry median of 9.68. BII Railway Transportation Technology Holdings Co's overall GF Score™ is 53/100 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 BII Railway Transportation Technology Holdings Co (FRA:CN6), the current Return-on-Tangible-Equity is 10.25% 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 BII Railway Transportation Technology Holdings Co (FRA:CN6) Overvalued in 2026?
Based on GuruFocus' analysis, BII Railway Transportation Technology Holdings Co stock appears to be undervalued.
The current stock price of €0.02 is trading 38.3% below its estimated GF Value™ of €0.03.
Key valuation signals for FRA:CN6:
Return-on-Tangible-Equity: 10.25% (40% above median its 10-year median of 7.34)
GF Value™: €0.03 vs. price of €0.02 (38.3% below fair value)
Industry Position: 5.9% above the Software median (#1388 of 2483)
No single metric tells the full story. See the FRA:CN6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BII Railway Transportation Technology Holdings Co Ltd is engaged in designing, implementing, selling, and maintenance, of application solutions for the networking and controlling systems of public transport. Its segments include Intelligent passenger information services; Digital-intelligence urban rail services; Innovative development; and Business development investment. The key part of the revenue is from the Intelligent passenger information services that provides design, production, implementation and sale, and maintenance of application solution services, which include related software, hardware, and spare parts in railway transportation areas. The group's revenue is derived from Mainland China, Hong Kong and Overseas.
53GF Score
Get the complete analysis for FRA:CN6
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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