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The historical rank and industry rank for China Financial Services Holdings's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:00605'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -109.82 Med: -0.5 Max: 17.73
Current: 17.73
During the past 13 years, China Financial Services Holdings's highest Return-on-Tangible-Equity was 17.73%. The lowest was -109.82%. And the median was -0.50%.
HKSE:00605's Return-on-Tangible-Equity is ranked better than 80.8% of 526
companies
in the Credit Services industry
Industry Median: 7.205
vs HKSE:00605: 17.73
China Financial Services Holdings (HKSE:00605) 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 Financial Services Holdings Return-on-Tangible-Equity Related Terms
China Financial Services 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 Financial Services Holdings Return-on-Tangible-Equity Chart
HKSE:00605 vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, China Financial Services 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 Financial Services Holdings Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, China Financial Services Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where China Financial Services 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 48.69% mean?
China Financial Services Holdings (HKSE:00605) has a Return-on-Tangible-Equity of 48.69% 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 Financial Services Holdings and its competitors. According to the industry distribution chart, China Financial Services Holdings ranks #101 out of 526 companies in the Credit Services industry, placing it in the top 19.2%.
Is China Financial Services Holdings' Return-on-Tangible-Equity too high?
China Financial Services Holdings' current Return-on-Tangible-Equity is 48.69%. The Credit Services industry median Return-on-Tangible-Equity is 7.21. China Financial Services Holdings' value of 48.69% is 575.8% above this industry median. Based on the distribution chart, China Financial Services Holdings ranks #101 out of 526 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, China Financial Services Holdings has a GF Score™ of 42/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Financial Services Holdings' Return-on-Tangible-Equity compare to V and MA?
According to the Credit Services industry distribution chart, China Financial Services Holdings ranks #101 out of 526 companies for Return-on-Tangible-Equity. This places China Financial Services Holdings in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.21. China Financial Services Holdings' value of 48.69% is 575.8% above this benchmark. 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 Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.21, based on 526 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 Financial Services Holdings's current Return-on-Tangible-Equity of 48.69% is 575.8% 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 Financial Services Holdings and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Financial Services Holdings's current Return-on-Tangible-Equity is 48.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Financial Services Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Financial Services Holdings (HKSE:00605) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.47, compared to a current price of HK$0.86 — trading 81.9% above its estimated fair value. The current Return-on-Tangible-Equity is 48.69% and 575.8% above the Credit Services industry median of 7.21. China Financial Services Holdings' overall GF Score™ is 42/100 with 4 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 Financial Services Holdings (HKSE:00605), the current Return-on-Tangible-Equity is 48.69% 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 Financial Services Holdings (HKSE:00605) Overvalued in 2026?
Based on GuruFocus' analysis, China Financial Services Holdings stock appears to be overvalued.
The current stock price of HK$0.86 is trading 81.9% above its estimated GF Value™ of HK$0.47.
GuruFocus considers China Financial Services Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:00605:
Return-on-Tangible-Equity: 48.69%
GF Value™: HK$0.47 vs. price of HK$0.86 (81.9% above fair value)
Industry Position: 575.8% above the Credit Services median (#101 of 526)
No single metric tells the full story. See the HKSE:00605 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Financial Services Holdings Ltd is engaged in the provision of financing services in four operating regions, namely Hong Kong, Shenzhen, Chengdu, and Beijing. The clients are individual customers and corporate customers located in Hong Kong and the PRC. The group identifies potential customers through in-house sales teams, referrals, and networks with commercial banks, property developers, and small-to-medium-sized enterprises. The company's reportable segment are; financing services, and education service. Geographically, revenue is derived from the People's Republic of China.
42GF Score
Get the complete analysis for HKSE:00605
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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