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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. Zonqing Environmental's annualized net income for the quarter that ended in Dec. 2025 was HK$-16 Mil. Zonqing Environmental's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$753 Mil. Therefore, Zonqing Environmental's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -2.17%.
The historical rank and industry rank for Zonqing Environmental's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:01855'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -12.74 Med: 13.33 Max: 22.88
Current: 3.26
During the past 9 years, Zonqing Environmental's highest Return-on-Tangible-Equity was 22.88%. The lowest was -12.74%. And the median was 13.33%.
HKSE:01855's Return-on-Tangible-Equity is ranked worse than 66.98% of 1714
companies
in the Construction industry
Industry Median: 8.2
vs HKSE:01855: 3.26
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.
Zonqing Environmental Return-on-Tangible-Equity Related Terms
Zonqing Environmental Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zonqing Environmental'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:01855 vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Zonqing Environmental'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.
Zonqing Environmental Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Zonqing Environmental's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zonqing Environmental'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 -2.17% mean?
Zonqing Environmental (HKSE:01855) has a Return-on-Tangible-Equity of -2.17% 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 Zonqing Environmental and its competitors. According to the industry distribution chart, Zonqing Environmental ranks #1148 out of 1714 companies in the Construction industry, placing it in the top 67%.
Is Zonqing Environmental's Return-on-Tangible-Equity too high?
Zonqing Environmental's current Return-on-Tangible-Equity is -2.17%. Based on the distribution chart, Zonqing Environmental ranks #1148 out of 1714 companies in the Construction industry, which is below the industry midpoint. Overall, Zonqing Environmental has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zonqing Environmental's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Zonqing Environmental ranks #1148 out of 1714 companies for Return-on-Tangible-Equity. This places Zonqing Environmental in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.20. 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.20, based on 1,714 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 Zonqing Environmental and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zonqing Environmental's current Return-on-Tangible-Equity is -2.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zonqing Environmental stock overvalued right now?
Based on GuruFocus' analysis, Zonqing Environmental (HKSE:01855) is currently considered Possible Value Trap. The stock's GF Value™ is HK$6.71, compared to a current price of HK$0.20 — trading 97.1% below its estimated fair value. The current Return-on-Tangible-Equity is -2.17%. Zonqing Environmental's overall GF Score™ is 68/100 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 Zonqing Environmental (HKSE:01855), the current Return-on-Tangible-Equity is -2.17% 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 Zonqing Environmental (HKSE:01855) Overvalued in 2026?
Based on GuruFocus' analysis, Zonqing Environmental stock appears to be undervalued.
The current stock price of HK$0.20 is trading 97.1% below its estimated GF Value™ of HK$6.71.
GuruFocus considers Zonqing Environmental to be Possible Value Trap.
Key valuation signals for HKSE:01855:
Return-on-Tangible-Equity: -2.17%
GF Value™: HK$6.71 vs. price of HK$0.20 (97.1% below fair value)
No single metric tells the full story. See the HKSE:01855 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zonqing Environmental Ltd is principally engaged in city renewal services, city operation and maintenance services, town planning design services and cultural tourism.. Its business segments include City renewal construction services: City operation and maintenance services: Town planning design services: and Cultural tourism. A majority of revenue is derived from the City renewal construction services segment includes construction engineering services in various fields such as landscaping and municipal project. The group's revenue is generated in the PRC.
68GF Score
Get the complete analysis for HKSE:01855
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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