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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. China Leon Inspection Holding's annualized net income for the quarter that ended in Dec. 2025 was HK$-4 Mil. China Leon Inspection Holding's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$419 Mil. Therefore, China Leon Inspection Holding's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -0.96%.
The historical rank and industry rank for China Leon Inspection Holding's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:01586'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.27 Med: 20.33 Max: 28.66
Current: 9.14
During the past 13 years, China Leon Inspection Holding's highest Return-on-Tangible-Equity was 28.66%. The lowest was 7.27%. And the median was 20.33%.
HKSE:01586's Return-on-Tangible-Equity is ranked worse than 55.89% of 1011
companies
in the Business Services industry
Industry Median: 11
vs HKSE:01586: 9.14
China Leon Inspection Holding (HKSE:01586) 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 Leon Inspection Holding Return-on-Tangible-Equity Related Terms
China Leon Inspection Holding 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 Leon Inspection Holding Return-on-Tangible-Equity Chart
HKSE:01586 vs CTAS, CPRT, GPN: Return-on-Tangible-Equity Comparison
For the Specialty Business Services subindustry, China Leon Inspection Holding'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 Leon Inspection Holding Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, China Leon Inspection Holding's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where China Leon Inspection Holding'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 -0.96% mean?
China Leon Inspection Holding (HKSE:01586) has a Return-on-Tangible-Equity of -0.96% 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 Leon Inspection Holding and its competitors. Over the past decade, China Leon Inspection Holding's Return-on-Tangible-Equity has ranged from 7.27 to 28.66. According to the industry distribution chart, China Leon Inspection Holding ranks #565 out of 1011 companies in the Business Services industry, placing it in the top 55.9%.
Is China Leon Inspection Holding's Return-on-Tangible-Equity too high?
China Leon Inspection Holding's current Return-on-Tangible-Equity is -0.96%. Over the past 10 years, this metric has ranged from a low of 7.27 to a high of 28.66. Based on the distribution chart, China Leon Inspection Holding ranks #565 out of 1011 companies in the Business Services industry, which is below the industry midpoint. Overall, China Leon Inspection Holding has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Leon Inspection Holding's Return-on-Tangible-Equity compare to CTAS and CPRT?
According to the Business Services industry distribution chart, China Leon Inspection Holding ranks #565 out of 1011 companies for Return-on-Tangible-Equity. This places China Leon Inspection Holding in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.00. Historically, China Leon Inspection Holding's own Return-on-Tangible-Equity has ranged from 7.27 to 28.66 over the past decade. 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 11.00, based on 1,011 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. 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 Leon Inspection Holding and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 11.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Leon Inspection Holding's current Return-on-Tangible-Equity is -0.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Leon Inspection Holding stock overvalued right now?
Based on GuruFocus' analysis, China Leon Inspection Holding (HKSE:01586) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$2.22, compared to a current price of HK$1.72 — trading 22.5% below its estimated fair value. The current Return-on-Tangible-Equity is -0.96%. China Leon Inspection Holding's overall GF Score™ is 88/100 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 China Leon Inspection Holding (HKSE:01586), the current Return-on-Tangible-Equity is -0.96% 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 Leon Inspection Holding (HKSE:01586) Overvalued in 2026?
Based on GuruFocus' analysis, China Leon Inspection Holding stock appears to be undervalued.
The current stock price of HK$1.72 is trading 22.5% below its estimated GF Value™ of HK$2.22.
GuruFocus considers China Leon Inspection Holding to be Modestly Undervalued.
Key valuation signals for HKSE:01586:
Return-on-Tangible-Equity: -0.96%
GF Value™: HK$2.22 vs. price of HK$1.72 (22.5% below fair value)
No single metric tells the full story. See the HKSE:01586 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Leon Inspection Holding Ltd is a coal testing inspection services provider. The business scope of the company includes Testing services, Surveying services, and witnessing and Ancillary services. Testing services focus on the quality assurance of coal; Surveying services include a draft survey to determine or verify the coal quantity, and it also provide witnessing services by observing testing and inspection activities conducted by the counterparties of its customers to detect dishonesty or abnormality. Geographically, it generates the majority of its revenue from Greater China.
88GF Score
Get the complete analysis for HKSE:01586
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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