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Chinasoft InternationalHKSE:00354 +2.07%86 Return-on-Tangible-Equity is 5.77% as of Jun. 2026, which is 58% below its 10-year median of 13.67. GuruFocus rates HKSE:00354 with a GF Score™ of 86/100 and a GF Value™ of HK$5.80 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 2,492 Software companies, Chinasoft International ranks worse than 61.12% 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. Chinasoft International's annualized net income for the quarter that ended in Jun. 2026 was HK$696 Mil. Chinasoft International's average shareholder tangible equity for the quarter that ended in Jun. 2026 was HK$11,989 Mil. Therefore, Chinasoft International's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 5.81%.
The historical rank and industry rank for Chinasoft International's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:00354'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.15 Med: 13.67 Max: 17.22
Current: 3.49
During the past 13 years, Chinasoft International's highest Return-on-Tangible-Equity was 17.22%. The lowest was 3.15%. And the median was 13.67%.
HKSE:00354's Return-on-Tangible-Equity is ranked worse than 61.12% of 2492
companies
in the Software industry
Industry Median: 9.72
vs HKSE:00354: 3.49
Chinasoft International (HKSE:00354) 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.
Chinasoft International Return-on-Tangible-Equity Related Terms
Chinasoft International Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Chinasoft International'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.
Chinasoft International Return-on-Tangible-Equity Chart
HKSE:00354 vs IBM, ACN, CTSH: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Chinasoft International'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.
Chinasoft International Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Chinasoft International's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Chinasoft International'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 5.77% mean?
Chinasoft International (HKSE:00354) has a Return-on-Tangible-Equity of 5.77% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Chinasoft International and its competitors. This is 58% below median its historical median of 13.67. Over the past decade, Chinasoft International's Return-on-Tangible-Equity has ranged from 3.15 to 17.22. According to the industry distribution chart, Chinasoft International ranks #1523 out of 2492 companies in the Software industry, placing it in the top 61.1%.
Is Chinasoft International's Return-on-Tangible-Equity too high?
Chinasoft International's current Return-on-Tangible-Equity of 5.77% is 58% below median its 10-year median of 13.67. Over the past 10 years, this metric has ranged from a low of 3.15 to a high of 17.22. The Software industry median Return-on-Tangible-Equity is 9.72. Chinasoft International's value of 5.77% is 40.6% below this industry median. Based on the distribution chart, Chinasoft International ranks #1523 out of 2492 companies in the Software industry, which is below the industry midpoint. Overall, Chinasoft International has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chinasoft International's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Chinasoft International ranks #1523 out of 2492 companies for Return-on-Tangible-Equity. This places Chinasoft International in the lower half of its industry. The industry median Return-on-Tangible-Equity is 9.72. Chinasoft International's value of 5.77% is 40.6% below this benchmark. Historically, Chinasoft International's own Return-on-Tangible-Equity has ranged from 3.15 to 17.22 over the past decade. While the company's 10-year median is 13.67 vs. the industry median of 9.72, Chinasoft International has consistently been below 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 9.72, based on 2,492 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. Chinasoft International's current Return-on-Tangible-Equity of 5.77% is 40.6% below 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 Chinasoft International and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chinasoft International's current Return-on-Tangible-Equity is 5.77%, which is 58% below median its own 10-year median of 13.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chinasoft International stock overvalued right now?
Based on GuruFocus' analysis, Chinasoft International (HKSE:00354) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$5.80, compared to a current price of HK$3.71 — trading 36.1% below its estimated fair value. The current Return-on-Tangible-Equity is 5.77%, which is 58% below median its 10-year median of 13.67 and 40.6% below the Software industry median of 9.72. Chinasoft International's overall GF Score™ is 86/100 with 7 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 Chinasoft International (HKSE:00354), the current Return-on-Tangible-Equity is 5.77% as of Jun. 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 Chinasoft International (HKSE:00354) Overvalued in 2026?
Based on GuruFocus' analysis, Chinasoft International stock appears to be undervalued.
The current stock price of HK$3.71 is trading 36.1% below its estimated GF Value™ of HK$5.80.
GuruFocus considers Chinasoft International to be Significantly Undervalued.
Key valuation signals for HKSE:00354:
Return-on-Tangible-Equity: 5.77% (58% below median its 10-year median of 13.67)
GF Value™: HK$5.80 vs. price of HK$3.71 (36.1% below fair value)
Industry Position: 40.6% below the Software median (#1523 of 2492)
No single metric tells the full story. See the HKSE:00354 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chinasoft International Ltd is an investment holding company. The principal activities of the Company and its subsidiaries are development and provision of information technology (IT) solutions services, and IT outsourcing services. The company's Nature of goods and services Project-based development services, Outsourcing services, Other services, Sales of software and hardware products of which majority of revenue comes from Outsourcing services. The group now has only one operating segment. The Group's operations are mainly located in its country of domicile, the People's Republic of China. The company has presence in PRC, Malaysia, Japan, Saudi Arabia, Singapore, India, and Indonesia. The majority of revenue comes from PRC.
86GF Score
Get the complete analysis for HKSE:00354
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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