Happy City HoldingsHCHL 13 Return-on-Tangible-Equity is -350.76% as of Aug. 2025. GuruFocus rates HCHL with a GF Score™ of 13/100. The stock has 1 warning sign investors should review. Among 331 Restaurants companies, Happy City Holdings ranks worse than 97.89% 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. Happy City Holdings's annualized net income for the quarter that ended in Aug. 2025 was $-5.43 Mil. Happy City Holdings's average shareholder tangible equity for the quarter that ended in Aug. 2025 was $1.55 Mil. Therefore, Happy City Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Aug. 2025 was -350.76%.
The historical rank and industry rank for Happy City Holdings's Return-on-Tangible-Equity or its related term are showing as below:
HCHL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -197.11 Med: -173.01 Max: -173.01
Current: -197.11
During the past 3 years, Happy City Holdings's highest Return-on-Tangible-Equity was -173.01%. The lowest was -197.11%. And the median was -173.01%.
HCHL's Return-on-Tangible-Equity is ranked worse than 97.89% of 331
companies
in the Restaurants industry
Industry Median: 8.9
vs HCHL: -197.11
Happy City Holdings (NAS:HCHL) 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.
Happy City Holdings Return-on-Tangible-Equity Related Terms
Happy City Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Happy City Holdings'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.
Happy City Holdings Return-on-Tangible-Equity Chart
Happy City Holdings Annual Data
Trend
Aug23
Aug24
Aug25
Return-on-Tangible-Equity
0.00
Negative Tangible Equity
-173.01
Happy City Holdings Semi-Annual Data
Aug23
Feb24
Aug24
Feb25
Aug25
Return-on-Tangible-Equity
0.00
0.00
468.44
76.46
-350.76
HCHL vs RRGB, NDLS, MB: Return-on-Tangible-Equity Comparison
For the Restaurants subindustry, Happy City 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.
Happy City Holdings Return-on-Tangible-Equity vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Happy City Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Happy City 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 (Aug. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -350.76% mean?
Happy City Holdings (HCHL) has a Return-on-Tangible-Equity of -350.76% as of Aug. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Happy City Holdings and its competitors. According to the industry distribution chart, Happy City Holdings ranks #324 out of 331 companies in the Restaurants industry, placing it in the top 97.9%.
Is Happy City Holdings' Return-on-Tangible-Equity too high?
Happy City Holdings' current Return-on-Tangible-Equity is -350.76%. Based on the distribution chart, Happy City Holdings ranks #324 out of 331 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Happy City Holdings has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Happy City Holdings' Return-on-Tangible-Equity compare to RRGB and NDLS?
According to the Restaurants industry distribution chart, Happy City Holdings ranks #324 out of 331 companies for Return-on-Tangible-Equity. This places Happy City Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.90. 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 Restaurants company?
The median Return-on-Tangible-Equity among Restaurants companies is 8.90, based on 331 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. 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 Happy City Holdings and its competitors. For the Restaurants industry, the median Return-on-Tangible-Equity is 8.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Happy City Holdings's current Return-on-Tangible-Equity is -350.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Happy City Holdings stock overvalued right now?
Happy City Holdings (HCHL) has a current Return-on-Tangible-Equity of -350.76%. The current Return-on-Tangible-Equity is -350.76%. Happy City Holdings' overall GF Score™ is 13/100 with 1 warning sign 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 Happy City Holdings (HCHL), the current Return-on-Tangible-Equity is -350.76% as of Aug. 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.
Happy City Holdings Ltd operates three all-you-can-eat hotpot restaurants and specializes in Thai and Japanese Hotpot under the brand names Thai Pot and Gyu! Gyu! Shabu Shabu in Hong Kong. These restaurants are located in Tsuen Wan in the New Territories, Mong Kok in Kowloon, and North Point on Hong Kong Island. The Company's of its operations are conducted in Hong Kong.
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