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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. Shanghai Gench Education Group's annualized net income for the quarter that ended in Dec. 2025 was HK$178 Mil. Shanghai Gench Education Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$2,698 Mil. Therefore, Shanghai Gench Education Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 6.59%.
The historical rank and industry rank for Shanghai Gench Education Group's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:01525'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2 Med: 10.83 Max: 14.24
Current: 10.15
During the past 10 years, Shanghai Gench Education Group's highest Return-on-Tangible-Equity was 14.24%. The lowest was 2.00%. And the median was 10.83%.
HKSE:01525's Return-on-Tangible-Equity is ranked worse than 55.42% of 249
companies
in the Education industry
Industry Median: 12.48
vs HKSE:01525: 10.15
Shanghai Gench Education Group (HKSE:01525) 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.
Shanghai Gench Education Group Return-on-Tangible-Equity Related Terms
Shanghai Gench Education Group 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.
Shanghai Gench Education Group Return-on-Tangible-Equity Chart
HKSE:01525 vs EDU, TAL, LAUR: Return-on-Tangible-Equity Comparison
For the Education & Training Services subindustry, Shanghai Gench Education Group'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.
Shanghai Gench Education Group Return-on-Tangible-Equity vs Education Industry
For the Education industry and Consumer Defensive sector, Shanghai Gench Education Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Shanghai Gench Education Group'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 6.59% mean?
Shanghai Gench Education Group (HKSE:01525) has a Return-on-Tangible-Equity of 6.59% 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 Shanghai Gench Education Group and its competitors. This is 39% below median its historical median of 10.83. Over the past decade, Shanghai Gench Education Group's Return-on-Tangible-Equity has ranged from 2.00 to 14.24. According to the industry distribution chart, Shanghai Gench Education Group ranks #138 out of 249 companies in the Education industry, placing it in the top 55.4%.
Is Shanghai Gench Education Group's Return-on-Tangible-Equity too high?
Shanghai Gench Education Group's current Return-on-Tangible-Equity of 6.59% is 39% below median its 10-year median of 10.83. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 14.24. The Education industry median Return-on-Tangible-Equity is 12.48. Shanghai Gench Education Group's value of 6.59% is 47.2% below this industry median. Based on the distribution chart, Shanghai Gench Education Group ranks #138 out of 249 companies in the Education industry, which is below the industry midpoint. Overall, Shanghai Gench Education Group has a GF Score™ of 89/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shanghai Gench Education Group's Return-on-Tangible-Equity compare to EDU and TAL?
According to the Education industry distribution chart, Shanghai Gench Education Group ranks #138 out of 249 companies for Return-on-Tangible-Equity. This places Shanghai Gench Education Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 12.48. Shanghai Gench Education Group's value of 6.59% is 47.2% below this benchmark. Historically, Shanghai Gench Education Group's own Return-on-Tangible-Equity has ranged from 2.00 to 14.24 over the past decade. While the company's 10-year median is 10.83 vs. the industry median of 12.48, Shanghai Gench Education Group 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 an Education company?
The median Return-on-Tangible-Equity among Education companies is 12.48, based on 249 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. Shanghai Gench Education Group's current Return-on-Tangible-Equity of 6.59% is 47.2% 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 Shanghai Gench Education Group and its competitors. For the Education industry, the median Return-on-Tangible-Equity is 12.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Gench Education Group's current Return-on-Tangible-Equity is 6.59%, which is 39% below median its own 10-year median of 10.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Gench Education Group stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Gench Education Group (HKSE:01525) is currently considered Possible Value Trap. The stock's GF Value™ is HK$3.51, compared to a current price of HK$2.44 — trading 30.6% below its estimated fair value. The current Return-on-Tangible-Equity is 6.59%, which is 39% below median its 10-year median of 10.83 and 47.2% below the Education industry median of 12.48. Shanghai Gench Education Group's overall GF Score™ is 89/100 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 Shanghai Gench Education Group (HKSE:01525), the current Return-on-Tangible-Equity is 6.59% 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 Shanghai Gench Education Group (HKSE:01525) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Gench Education Group stock appears to be undervalued.
The current stock price of HK$2.44 is trading 30.6% below its estimated GF Value™ of HK$3.51.
GuruFocus considers Shanghai Gench Education Group to be Possible Value Trap.
Key valuation signals for HKSE:01525:
Return-on-Tangible-Equity: 6.59% (39% below median its 10-year median of 10.83)
GF Value™: HK$3.51 vs. price of HK$2.44 (30.6% below fair value)
Industry Position: 47.2% below the Education median (#138 of 249)
No single metric tells the full story. See the HKSE:01525 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Gench Education Group Ltd and its subsidiaries are engaged in providing undergraduate education and junior college educations. The group generates its revenue from tuition fees, boarding fees, and other education-related services. Geographically, the company generates all of its revenue from the People's Republic of China.
89GF Score
Get the complete analysis for HKSE:01525
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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