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Arts Optical International HoldingsHKSE:01120 -0.83%43 Return-on-Tangible-Equity is 13.98% as of Dec. 2025, which is 334% above its 10-year median of 3.22. GuruFocus rates HKSE:01120 with a GF Score™ of 43/100 and a GF Value™ of HK$0.99 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 757 Medical Devices & Instruments companies, Arts Optical International Holdings ranks worse than 50.73% on this metric.
The historical rank and industry rank for Arts Optical International Holdings's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:01120'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -79.15 Med: 3.22 Max: 61.95
Current: 4.32
During the past 13 years, Arts Optical International Holdings's highest Return-on-Tangible-Equity was 61.95%. The lowest was -79.15%. And the median was 3.22%.
HKSE:01120's Return-on-Tangible-Equity is ranked worse than 50.73% of 757
companies
in the Medical Devices & Instruments industry
Industry Median: 4.82
vs HKSE:01120: 4.32
Arts Optical International Holdings (HKSE:01120) 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.
Arts Optical International Holdings Return-on-Tangible-Equity Related Terms
Arts Optical International 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.
Arts Optical International Holdings Return-on-Tangible-Equity Chart
HKSE:01120 vs ISRG, BDX, RMD: Return-on-Tangible-Equity Comparison
For the Medical Instruments & Supplies subindustry, Arts Optical International 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.
Arts Optical International Holdings Return-on-Tangible-Equity vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Arts Optical International Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arts Optical International 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 13.98% mean?
Arts Optical International Holdings (HKSE:01120) has a Return-on-Tangible-Equity of 13.98% 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 Arts Optical International Holdings and its competitors. This is 334% above median its historical median of 3.22. According to the industry distribution chart, Arts Optical International Holdings ranks #384 out of 757 companies in the Medical Devices & Instruments industry, placing it in the top 50.7%.
Is Arts Optical International Holdings' Return-on-Tangible-Equity too high?
Arts Optical International Holdings' current Return-on-Tangible-Equity of 13.98% is 334% above median its 10-year median of 3.22. The Medical Devices & Instruments industry median Return-on-Tangible-Equity is 4.82. Arts Optical International Holdings' value of 13.98% is 190% above this industry median. Based on the distribution chart, Arts Optical International Holdings ranks #384 out of 757 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, Arts Optical International Holdings has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arts Optical International Holdings' Return-on-Tangible-Equity compare to ISRG and BDX?
According to the Medical Devices & Instruments industry distribution chart, Arts Optical International Holdings ranks #384 out of 757 companies for Return-on-Tangible-Equity. This places Arts Optical International Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 4.82. Arts Optical International Holdings' value of 13.98% is 190% above this benchmark. While the company's 10-year median is 3.22 vs. the industry median of 4.82, Arts Optical International 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 a Medical Devices & Instruments company?
The median Return-on-Tangible-Equity among Medical Devices & Instruments companies is 4.82, based on 757 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. Arts Optical International Holdings's current Return-on-Tangible-Equity of 13.98% is 190% 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 Arts Optical International Holdings and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Equity is 4.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arts Optical International Holdings's current Return-on-Tangible-Equity is 13.98%, which is 334% above median its own 10-year median of 3.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arts Optical International Holdings stock overvalued right now?
Based on GuruFocus' analysis, Arts Optical International Holdings (HKSE:01120) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.99, compared to a current price of HK$0.60 — trading 39.4% below its estimated fair value. The current Return-on-Tangible-Equity is 13.98%, which is 334% above median its 10-year median of 3.22 and 190% above the Medical Devices & Instruments industry median of 4.82. Arts Optical International Holdings' overall GF Score™ is 43/100 with 5 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 Arts Optical International Holdings (HKSE:01120), the current Return-on-Tangible-Equity is 13.98% 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 Arts Optical International Holdings (HKSE:01120) Overvalued in 2026?
Based on GuruFocus' analysis, Arts Optical International Holdings stock appears to be undervalued.
The current stock price of HK$0.60 is trading 39.4% below its estimated GF Value™ of HK$0.99.
GuruFocus considers Arts Optical International Holdings to be Possible Value Trap.
Key valuation signals for HKSE:01120:
Return-on-Tangible-Equity: 13.98% (334% above median its 10-year median of 3.22)
GF Value™: HK$0.99 vs. price of HK$0.60 (39.4% below fair value)
Industry Position: 190% above the Medical Devices & Instruments median (#384 of 757)
No single metric tells the full story. See the HKSE:01120 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arts Optical International Holdings Ltd is an investment holding company. Through its subsidiaries, it is engaged in the manufacturing and trading of prescription frames, sunglasses, and optical lenses as well as property holding. It operates in three divisions: Original design manufacturing, Distribution, and Lens division. The group is organized into four segments, which are sales of optical products to customers located in Europe, the United States, Asia, and other regions, of which the majority of the revenue is generated from Europe.
43GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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