China East Education HoldingsFRA:ZX3 +2.29%49 Return-on-Tangible-Equity is 11.88% as of Dec. 2025, which is 9% above its 10-year median of 10.92. GuruFocus rates FRA:ZX3 with a GF Score™ of 49/100 and a GF Value™ of €0.41 (Fairly Valued). The stock has 2 warning signs investors should review. Among 246 Education companies, China East Education Holdings ranks better than 52.85% 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 East Education Holdings's annualized net income for the quarter that ended in Dec. 2025 was €85.6 Mil. China East Education Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €721.0 Mil. Therefore, China East Education Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 11.88%.
The historical rank and industry rank for China East Education Holdings's Return-on-Tangible-Equity or its related term are showing as below:
FRA:ZX3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.37 Med: 10.92 Max: 53.09
Current: 12.95
During the past 10 years, China East Education Holdings's highest Return-on-Tangible-Equity was 53.09%. The lowest was 4.37%. And the median was 10.92%.
FRA:ZX3's Return-on-Tangible-Equity is ranked better than 52.85% of 246
companies
in the Education industry
Industry Median: 11.685
vs FRA:ZX3: 12.95
China East Education Holdings (FRA:ZX3) 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 East Education Holdings Return-on-Tangible-Equity Related Terms
China East Education Holdings 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.
China East Education Holdings Return-on-Tangible-Equity Chart
FRA:ZX3 vs EDU, TAL, LAUR: Return-on-Tangible-Equity Comparison
For the Education & Training Services subindustry, China East Education Holdings'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 East Education Holdings Return-on-Tangible-Equity vs Education Industry
For the Education industry and Consumer Defensive sector, China East Education Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where China East Education Holdings'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 11.88% mean?
China East Education Holdings (FRA:ZX3) has a Return-on-Tangible-Equity of 11.88% 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 China East Education Holdings and its competitors. This is near median its historical median of 10.92. Over the past decade, China East Education Holdings' Return-on-Tangible-Equity has ranged from 4.37 to 53.09. According to the industry distribution chart, China East Education Holdings ranks #116 out of 246 companies in the Education industry, placing it in the top 47.2%.
Is China East Education Holdings' Return-on-Tangible-Equity too high?
China East Education Holdings' current Return-on-Tangible-Equity of 11.88% is near median its 10-year median of 10.92. Over the past 10 years, this metric has ranged from a low of 4.37 to a high of 53.09. The Education industry median Return-on-Tangible-Equity is 11.69. China East Education Holdings' value of 11.88% is 1.7% above this industry median. Based on the distribution chart, China East Education Holdings ranks #116 out of 246 companies in the Education industry, which is above the industry midpoint. Overall, China East Education Holdings has a GF Score™ of 49/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China East Education Holdings' Return-on-Tangible-Equity compare to EDU and TAL?
According to the Education industry distribution chart, China East Education Holdings ranks #116 out of 246 companies for Return-on-Tangible-Equity. This puts China East Education Holdings in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.69. China East Education Holdings' value of 11.88% is 1.7% above this benchmark. Historically, China East Education Holdings' own Return-on-Tangible-Equity has ranged from 4.37 to 53.09 over the past decade. While the company's 10-year median is 10.92 vs. the industry median of 11.69, China East Education Holdings 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 an Education company?
The median Return-on-Tangible-Equity among Education companies is 11.69, based on 246 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 East Education Holdings's current Return-on-Tangible-Equity of 11.88% is 1.7% 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 East Education Holdings and its competitors. For the Education industry, the median Return-on-Tangible-Equity is 11.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China East Education Holdings's current Return-on-Tangible-Equity is 11.88%, which is near median its own 10-year median of 10.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China East Education Holdings stock overvalued right now?
Based on GuruFocus' analysis, China East Education Holdings (FRA:ZX3) is currently considered Fairly Valued. The stock's GF Value™ is €0.41, compared to a current price of €0.45 — trading 8.8% above its estimated fair value. The current Return-on-Tangible-Equity is 11.88%, which is near median its 10-year median of 10.92 and 1.7% above the Education industry median of 11.69. China East Education Holdings' overall GF Score™ is 49/100 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 China East Education Holdings (FRA:ZX3), the current Return-on-Tangible-Equity is 11.88% 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 China East Education Holdings (FRA:ZX3) Overvalued in 2026?
Based on GuruFocus' analysis, China East Education Holdings stock appears to be overvalued.
The current stock price of €0.45 is trading 8.8% above its estimated GF Value™ of €0.41.
GuruFocus considers China East Education Holdings to be Fairly Valued.
Key valuation signals for FRA:ZX3:
Return-on-Tangible-Equity: 11.88% (near median its 10-year median of 10.92)
GF Value™: €0.41 vs. price of €0.45 (8.8% above fair value)
Industry Position: 1.7% above the Education median (#116 of 246)
No single metric tells the full story. See the FRA:ZX3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China East Education Holdings Business Description
China East Education is the largest vocational training education provider in China in terms of average students enrolled. It was founded in 1988 and its business spans four segments: culinary arts, information & internet technology, auto services, and fashion & beauty. The company's on-campus student population exceeded 150,000 as of June 30, 2025. In 2024, China East Education's revenue breakdown by major businesses was 55% in culinary arts, 19% in information & internet technology, 22% in auto services.
49GF Score
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