Weichai Power CoFRA:WI4 +4.69%70 Return-on-Tangible-Equity is 26.45% as of Mar. 2026, which is 17% below its 10-year median of 31.69. GuruFocus rates FRA:WI4 with a GF Score™ of 70/100 and a GF Value™ of €2.42 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,285 Vehicles & Parts companies, Weichai Power Co ranks better than 88.33% 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. Weichai Power Co's annualized net income for the quarter that ended in Mar. 2026 was €1,549 Mil. Weichai Power Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €5,856 Mil. Therefore, Weichai Power Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 26.45%.
The historical rank and industry rank for Weichai Power Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:WI4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 18.72 Med: 31.69 Max: 3577.99
Current: 25.28
During the past 13 years, Weichai Power Co's highest Return-on-Tangible-Equity was 3,577.99%. The lowest was 18.72%. And the median was 31.69%.
FRA:WI4's Return-on-Tangible-Equity is ranked better than 88.33% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.47
vs FRA:WI4: 25.28
Weichai Power Co (FRA:WI4) 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.
Weichai Power Co Return-on-Tangible-Equity Related Terms
Weichai Power Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Weichai Power Co'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:WI4 vs TSLA, GM, F: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, Weichai Power 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.
Weichai Power Co Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Weichai Power Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Weichai Power 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 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 26.45% mean?
Weichai Power Co (FRA:WI4) has a Return-on-Tangible-Equity of 26.45% 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 Weichai Power Co and its competitors. This is 17% below median its historical median of 31.69. Over the past decade, Weichai Power Co's Return-on-Tangible-Equity has ranged from 18.72 to 3,577.99. According to the industry distribution chart, Weichai Power Co ranks #150 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 11.7%.
Is Weichai Power Co's Return-on-Tangible-Equity too high?
Weichai Power Co's current Return-on-Tangible-Equity of 26.45% is 17% below median its 10-year median of 31.69. Over the past 10 years, this metric has ranged from a low of 18.72 to a high of 3,577.99. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.47. Weichai Power Co's value of 26.45% is 254.1% above this industry median. Based on the distribution chart, Weichai Power Co ranks #150 out of 1285 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Weichai Power Co has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Weichai Power Co's Return-on-Tangible-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Weichai Power Co ranks #150 out of 1285 companies for Return-on-Tangible-Equity. This places Weichai Power Co in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.47. Weichai Power Co's value of 26.45% is 254.1% above this benchmark. Historically, Weichai Power Co's own Return-on-Tangible-Equity has ranged from 18.72 to 3,577.99 over the past decade. While the company's 10-year median is 31.69 vs. the industry median of 7.47, Weichai Power 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.47, based on 1,285 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. Weichai Power Co's current Return-on-Tangible-Equity of 26.45% is 254.1% 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 Weichai Power Co and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Weichai Power Co's current Return-on-Tangible-Equity is 26.45%, which is 17% below median its own 10-year median of 31.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Weichai Power Co stock overvalued right now?
Based on GuruFocus' analysis, Weichai Power Co (FRA:WI4) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.42, compared to a current price of €3.96 — trading 63.4% above its estimated fair value. The current Return-on-Tangible-Equity is 26.45%, which is 17% below median its 10-year median of 31.69 and 254.1% above the Vehicles & Parts industry median of 7.47. Weichai Power Co's overall GF Score™ is 70/100 with 2 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 Weichai Power Co (FRA:WI4), the current Return-on-Tangible-Equity is 26.45% 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 Weichai Power Co (FRA:WI4) Overvalued in 2026?
Based on GuruFocus' analysis, Weichai Power Co stock appears to be overvalued.
The current stock price of €3.96 is trading 63.4% above its estimated GF Value™ of €2.42.
GuruFocus considers Weichai Power Co to be Significantly Overvalued.
Key valuation signals for FRA:WI4:
Return-on-Tangible-Equity: 26.45% (17% below median its 10-year median of 31.69)
GF Value™: €2.42 vs. price of €3.96 (63.4% above fair value)
Industry Position: 254.1% above the Vehicles & Parts median (#150 of 1285)
No single metric tells the full story. See the FRA:WI4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Weichai Power Co Ltd is an industrial technology company that offers vehicles and equipment manufacturing, and logistics and supply chain services in China. The operating segments of the company are; Engines segment which includes the manufacturing and sale of engines and related parts; Automobiles and automobile components which includes the manufacturing and sale of automobiles and automobile components other than Engines; Agricultural equipment includes the manufacturing and sale of agricultural equipment (complete machineries), agricultural machineries, agricultural vehicles, and related parts; and the Intelligent logistics segment which includes forklift trucks production, warehousing technology, and supply chain solution services.
70GF Score
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