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Future MachineHKSE:01401 +1.92%72 Return-on-Tangible-Equity is 13.44% as of Dec. 2025, which is 35% above its 10-year median of 9.98. GuruFocus rates HKSE:01401 with a GF Score™ of 72/100 and a GF Value™ of HK$2.13 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,383 Hardware companies, Future Machine ranks better than 65.34% 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. Future Machine's annualized net income for the quarter that ended in Dec. 2025 was HK$67 Mil. Future Machine's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$497 Mil. Therefore, Future Machine's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 13.44%.
The historical rank and industry rank for Future Machine's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:01401'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -5.7 Med: 9.98 Max: 68.59
Current: 9.91
During the past 10 years, Future Machine's highest Return-on-Tangible-Equity was 68.59%. The lowest was -5.70%. And the median was 9.98%.
HKSE:01401's Return-on-Tangible-Equity is ranked better than 65.34% of 2383
companies
in the Hardware industry
Industry Median: 5.43
vs HKSE:01401: 9.91
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.
Future Machine Return-on-Tangible-Equity Related Terms
Future Machine Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Future Machine'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.
HKSE:01401 vs AAPL: Return-on-Tangible-Equity Comparison
For the Consumer Electronics subindustry, Future Machine'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.
Future Machine Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Future Machine's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Future Machine'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 13.44% mean?
Future Machine (HKSE:01401) has a Return-on-Tangible-Equity of 13.44% 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 Future Machine and its competitors. This is 35% above median its historical median of 9.98. According to the industry distribution chart, Future Machine ranks #826 out of 2383 companies in the Hardware industry, placing it in the top 34.7%.
Is Future Machine's Return-on-Tangible-Equity too high?
Future Machine's current Return-on-Tangible-Equity of 13.44% is 35% above median its 10-year median of 9.98. The Hardware industry median Return-on-Tangible-Equity is 5.43. Future Machine's value of 13.44% is 147.5% above this industry median. Based on the distribution chart, Future Machine ranks #826 out of 2383 companies in the Hardware industry, which is above the industry midpoint. Overall, Future Machine has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Future Machine's Return-on-Tangible-Equity compare to AAPL?
According to the Hardware industry distribution chart, Future Machine ranks #826 out of 2383 companies for Return-on-Tangible-Equity. This puts Future Machine in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.43. Future Machine's value of 13.44% is 147.5% above this benchmark. While the company's 10-year median is 9.98 vs. the industry median of 5.43, Future Machine 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.43, based on 2,383 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. Future Machine's current Return-on-Tangible-Equity of 13.44% is 147.5% 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 Future Machine and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Future Machine's current Return-on-Tangible-Equity is 13.44%, which is 35% above median its own 10-year median of 9.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Future Machine stock overvalued right now?
Based on GuruFocus' analysis, Future Machine (HKSE:01401) is currently considered Possible Value Trap. The stock's GF Value™ is HK$2.13, compared to a current price of HK$0.27 — trading 87.6% below its estimated fair value. The current Return-on-Tangible-Equity is 13.44%, which is 35% above median its 10-year median of 9.98 and 147.5% above the Hardware industry median of 5.43. Future Machine's overall GF Score™ is 72/100 with 6 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 Future Machine (HKSE:01401), the current Return-on-Tangible-Equity is 13.44% 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 Future Machine (HKSE:01401) Overvalued in 2026?
Based on GuruFocus' analysis, Future Machine stock appears to be undervalued.
The current stock price of HK$0.27 is trading 87.6% below its estimated GF Value™ of HK$2.13.
GuruFocus considers Future Machine to be Possible Value Trap.
Key valuation signals for HKSE:01401:
Return-on-Tangible-Equity: 13.44% (35% above median its 10-year median of 9.98)
GF Value™: HK$2.13 vs. price of HK$0.27 (87.6% below fair value)
Industry Position: 147.5% above the Hardware median (#826 of 2383)
No single metric tells the full story. See the HKSE:01401 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Future Machine Ltd is an investment holding company. The principal activities of its subsidiaries are designing, manufacturing and sales of mobile phones and printed circuit board assembly products (PCBA) and Internet of things (IoT) related products and investment holding. It generates a majority of its revenue from the sale of feature phones and smartphones. Geographically, the group derives its key revenue from the People's Republic of China (PRC), and also has a presence in India, Pakistan, the United States of America, Bangladesh, Algeria, Yemen, Dubai, and other markets.
72GF 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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