China Railway GroupFRA:CNO +2.44%44 Return-on-Tangible-Equity is 23.26% as of Mar. 2026, which is 39% above its 10-year median of 16.73. GuruFocus rates FRA:CNO with a GF Score™ of 44/100 and a GF Value™ of €0.47 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,706 Construction companies, China Railway Group ranks better than 79.66% 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 Railway Group's annualized net income for the quarter that ended in Mar. 2026 was €2,188 Mil. China Railway Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €9,406 Mil. Therefore, China Railway Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 23.26%.
The historical rank and industry rank for China Railway Group's Return-on-Tangible-Equity or its related term are showing as below:
FRA:CNO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.84 Med: 16.73 Max: 24.99
Current: 23.22
During the past 13 years, China Railway Group's highest Return-on-Tangible-Equity was 24.99%. The lowest was 13.84%. And the median was 16.73%.
FRA:CNO's Return-on-Tangible-Equity is ranked better than 79.66% of 1706
companies
in the Construction industry
Industry Median: 8.245
vs FRA:CNO: 23.22
China Railway Group (FRA:CNO) 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 Railway Group Return-on-Tangible-Equity Related Terms
China Railway Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for China Railway Group'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 Railway Group Return-on-Tangible-Equity Chart
FRA:CNO vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, China Railway Group'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 Railway Group Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, China Railway Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where China Railway Group'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 23.26% mean?
China Railway Group (FRA:CNO) has a Return-on-Tangible-Equity of 23.26% 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 Railway Group and its competitors. This is 39% above median its historical median of 16.73. Over the past decade, China Railway Group's Return-on-Tangible-Equity has ranged from 13.84 to 24.99. According to the industry distribution chart, China Railway Group ranks #347 out of 1706 companies in the Construction industry, placing it in the top 20.3%.
Is China Railway Group's Return-on-Tangible-Equity too high?
China Railway Group's current Return-on-Tangible-Equity of 23.26% is 39% above median its 10-year median of 16.73. Over the past 10 years, this metric has ranged from a low of 13.84 to a high of 24.99. The Construction industry median Return-on-Tangible-Equity is 8.25. China Railway Group's value of 23.26% is 182.1% above this industry median. Based on the distribution chart, China Railway Group ranks #347 out of 1706 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, China Railway Group has a GF Score™ of 44/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Railway Group's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, China Railway Group ranks #347 out of 1706 companies for Return-on-Tangible-Equity. This places China Railway Group in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.25. China Railway Group's value of 23.26% is 182.1% above this benchmark. Historically, China Railway Group's own Return-on-Tangible-Equity has ranged from 13.84 to 24.99 over the past decade. While the company's 10-year median is 16.73 vs. the industry median of 8.25, China Railway Group 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.25, based on 1,706 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 Railway Group's current Return-on-Tangible-Equity of 23.26% is 182.1% 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 Railway Group and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Railway Group's current Return-on-Tangible-Equity is 23.26%, which is 39% above median its own 10-year median of 16.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway Group stock overvalued right now?
Based on GuruFocus' analysis, China Railway Group (FRA:CNO) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.47, compared to a current price of €0.37 — trading 21.5% below its estimated fair value. The current Return-on-Tangible-Equity is 23.26%, which is 39% above median its 10-year median of 16.73 and 182.1% above the Construction industry median of 8.25. China Railway Group's overall GF Score™ is 44/100 with 9 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 Railway Group (FRA:CNO), the current Return-on-Tangible-Equity is 23.26% 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 Railway Group (FRA:CNO) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Group stock appears to be undervalued.
The current stock price of €0.37 is trading 21.5% below its estimated GF Value™ of €0.47.
GuruFocus considers China Railway Group to be Modestly Undervalued.
Key valuation signals for FRA:CNO:
Return-on-Tangible-Equity: 23.26% (39% above median its 10-year median of 16.73)
GF Value™: €0.47 vs. price of €0.37 (21.5% below fair value)
Industry Position: 182.1% above the Construction median (#347 of 1706)
No single metric tells the full story. See the FRA:CNO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Group Ltd is a construction conglomerate company. The company's operating segment includes Infrastructure construction; Survey, design and consulting services; Engineering equipment and component manufacturing; Property development, and Other businesses. It generates maximum revenue from the Infrastructure construction segment. The Infrastructure construction segment includes the construction of railways, highways, bridges, tunnels, metropolitan railways (including subways and light railways), buildings, irrigation works, hydroelectricity projects, ports, docks, airports, and other municipal works.
44GF Score
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