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Hong Leong AsiaFRA:HOM -6.86%62 Return-on-Tangible-Equity is 14.85% as of Dec. 2025, which is 78% above its 10-year median of 8.32. GuruFocus rates FRA:HOM with a GF Score™ of 62/100 and a GF Value™ of €0.65 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,284 Vehicles & Parts companies, Hong Leong Asia ranks better than 75.62% 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. Hong Leong Asia's annualized net income for the quarter that ended in Dec. 2025 was €75 Mil. Hong Leong Asia's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €506 Mil. Therefore, Hong Leong Asia's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 14.85%.
The historical rank and industry rank for Hong Leong Asia's Return-on-Tangible-Equity or its related term are showing as below:
FRA:HOM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -15.24 Med: 8.32 Max: 15.32
Current: 15.32
During the past 13 years, Hong Leong Asia's highest Return-on-Tangible-Equity was 15.32%. The lowest was -15.24%. And the median was 8.32%.
FRA:HOM's Return-on-Tangible-Equity is ranked better than 75.62% of 1284
companies
in the Vehicles & Parts industry
Industry Median: 7.48
vs FRA:HOM: 15.32
Hong Leong Asia (FRA:HOM) 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.
Hong Leong Asia Return-on-Tangible-Equity Related Terms
Hong Leong Asia Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hong Leong Asia'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.
FRA:HOM vs TSLA, GM, F: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, Hong Leong Asia'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.
Hong Leong Asia Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hong Leong Asia's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hong Leong Asia'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 14.85% mean?
Hong Leong Asia (FRA:HOM) has a Return-on-Tangible-Equity of 14.85% 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 Hong Leong Asia and its competitors. This is 78% above median its historical median of 8.32. According to the industry distribution chart, Hong Leong Asia ranks #313 out of 1284 companies in the Vehicles & Parts industry, placing it in the top 24.4%.
Is Hong Leong Asia's Return-on-Tangible-Equity too high?
Hong Leong Asia's current Return-on-Tangible-Equity of 14.85% is 78% above median its 10-year median of 8.32. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.48. Hong Leong Asia's value of 14.85% is 98.5% above this industry median. Based on the distribution chart, Hong Leong Asia ranks #313 out of 1284 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Hong Leong Asia has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Asia's Return-on-Tangible-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Hong Leong Asia ranks #313 out of 1284 companies for Return-on-Tangible-Equity. This places Hong Leong Asia in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.48. Hong Leong Asia's value of 14.85% is 98.5% above this benchmark. While the company's 10-year median is 8.32 vs. the industry median of 7.48, Hong Leong Asia 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.48, based on 1,284 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. Hong Leong Asia's current Return-on-Tangible-Equity of 14.85% is 98.5% 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 Hong Leong Asia and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Leong Asia's current Return-on-Tangible-Equity is 14.85%, which is 78% above median its own 10-year median of 8.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Asia stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Asia (FRA:HOM) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.65, compared to a current price of €1.63 — trading 150.8% above its estimated fair value. The current Return-on-Tangible-Equity is 14.85%, which is 78% above median its 10-year median of 8.32 and 98.5% above the Vehicles & Parts industry median of 7.48. Hong Leong Asia's overall GF Score™ is 62/100 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 Hong Leong Asia (FRA:HOM), the current Return-on-Tangible-Equity is 14.85% 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 Hong Leong Asia (FRA:HOM) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Leong Asia stock appears to be overvalued.
The current stock price of €1.63 is trading 150.8% above its estimated GF Value™ of €0.65.
GuruFocus considers Hong Leong Asia to be Significantly Overvalued.
Key valuation signals for FRA:HOM:
Return-on-Tangible-Equity: 14.85% (78% above median its 10-year median of 8.32)
GF Value™: €0.65 vs. price of €1.63 (150.8% above fair value)
Industry Position: 98.5% above the Vehicles & Parts median (#313 of 1284)
No single metric tells the full story. See the FRA:HOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Leong Asia Ltd is the industrial manufacturing and distribution division of Hong Leong Group Singapore. It operates as the diversified industrial conglomerate in China and Southeast Asia. Its reportable segments are Powertrain solutions: engines for on-road, off-road, genset and marine applications. and Building materials: cement, precast concrete products, ready-mix concrete and quarry products. Geographically it derives key revenue from China.
62GF Score
Get the complete analysis for FRA:HOM
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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