China 21st Century Education Group (HKSE:01598) Return-on-Tangible-Equity: 13.80% (As of Jun. 2024)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HKSE:01598 China 21st Century Education Group Ltd HKSE:01598
4 GF Score
Price HK$0.11
View Full Analysis

What is China 21st Century Education Group Return-on-Tangible-Equity?

China 21st Century Education Group HKSE:01598 4 Return-on-Tangible-Equity is 13.80% as of Jun. 2024. GuruFocus rates HKSE:01598 with a GF Score™ of 4/100.

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 21st Century Education Group's annualized net income for the quarter that ended in Jun. 2024 was HK$66.7 Mil. China 21st Century Education Group's average shareholder tangible equity for the quarter that ended in Jun. 2024 was HK$483.4 Mil. Therefore, China 21st Century Education Group's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2024 was 13.80%.

The historical rank and industry rank for China 21st Century Education Group's Return-on-Tangible-Equity or its related term are showing as below:

HKSE:01598's Return-on-Tangible-Equity is not ranked *
in the Education industry.
Industry Median: 12.49
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

China 21st Century Education Group  (HKSE:01598) 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 21st Century Education Group Return-on-Tangible-Equity Related Terms


China 21st Century Education Group Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for China 21st Century Education Group'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.

China 21st Century Education Group Return-on-Tangible-Equity Chart

China 21st Century Education Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only 15.62 15.08 5.75 8.05 25.38

China 21st Century Education Group Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.12 0.21 18.28 3.09 13.80

HKSE:01598 vs EDU, LRN, TAL: Return-on-Tangible-Equity Comparison

For the Education & Training Services subindustry, China 21st Century 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.


China 21st Century Education Group Return-on-Tangible-Equity vs Education Industry

For the Education industry and Consumer Defensive sector, China 21st Century Education Group's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where China 21st Century Education Group's Return-on-Tangible-Equity falls into.


HKSE:01598
4GF Score
China 21st Century Education Group Ltd HKSE:01598
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China 21st Century Education Group Return-on-Tangible-Equity Calculation

China 21st Century Education Group's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=43.654/( (127.432+216.596 )/ 2 )
=43.654/172.014
=25.38 %

China 21st Century Education Group's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2024 )  (Q: Dec. 2023 )(Q: Jun. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2024 )  (Q: Dec. 2023 )(Q: Jun. 2024 )
=66.686/( (216.596+750.137)/ 2 )
=66.686/483.3665
=13.80 %

* 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 (Jun. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 13.80% mean?
China 21st Century Education Group (HKSE:01598) has a Return-on-Tangible-Equity of 13.80% as of Jun. 2024. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on China 21st Century Education Group and its competitors.
Is China 21st Century Education Group's Return-on-Tangible-Equity too high?
China 21st Century Education Group's current Return-on-Tangible-Equity is 13.80%. The Education industry median Return-on-Tangible-Equity is 12.49. China 21st Century Education Group's value of 13.80% is 10.5% above this industry median. Overall, China 21st Century Education Group has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does China 21st Century Education Group's Return-on-Tangible-Equity compare to EDU and LRN?
China 21st Century Education Group's Return-on-Tangible-Equity of 13.80% can be compared against companies in the Education industry. The industry median Return-on-Tangible-Equity is 12.49. China 21st Century Education Group's value of 13.80% is 10.5% 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 an Education company?
The median Return-on-Tangible-Equity among Education companies is 12.49, 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. China 21st Century Education Group's current Return-on-Tangible-Equity of 13.80% is 10.5% 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 China 21st Century Education Group and its competitors. For the Education industry, the median Return-on-Tangible-Equity is 12.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China 21st Century Education Group's current Return-on-Tangible-Equity is 13.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China 21st Century Education Group stock overvalued right now?
China 21st Century Education Group (HKSE:01598) has a current Return-on-Tangible-Equity of 13.80%. The current Return-on-Tangible-Equity is 13.80% and 10.5% above the Education industry median of 12.49. China 21st Century Education Group's overall GF Score™ is 4/100. 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 21st Century Education Group (HKSE:01598), the current Return-on-Tangible-Equity is 13.80% as of Jun. 2024. 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.

China 21st Century Education Group Business Description

Address Zhonghai Plaza, 15th Floor, South Tower, 8 Guanghua Dongli, Chaoyang District, Beijing, CHN, 050000
China 21st Century Education Group Ltd is a large well-established private education service provider based in the Beijing-Tianjin-Hebei region. It provides clients with customized services and solutions based on individual demand, including the preschool students in its kindergartens, the high school students in its high schools as well as the junior college, technical secondary school and continuing education students enrolled in its colleges. The group operated within one geographical segment because all of its revenue was generated in Mainland China.
4GF Score

Get the complete analysis for HKSE:01598

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.11
Price