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HKSE:02116's Return-on-Tangible-Equity is ranked better than 52.86% of 1574
companies
in the Chemicals industry
Industry Median: 6.095
vs HKSE:02116: 6.68
Jiangsu Innovative Ecological New Materials (HKSE:02116) 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.
Jiangsu Innovative Ecological New Materials Return-on-Tangible-Equity Related Terms
Jiangsu Innovative Ecological New Materials 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.
Jiangsu Innovative Ecological New Materials Return-on-Tangible-Equity Chart
Jiangsu Innovative Ecological New Materials Annual Data
HKSE:02116 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Jiangsu Innovative Ecological New Materials'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.
Jiangsu Innovative Ecological New Materials Return-on-Tangible-Equity vs Chemicals Industry
* 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 4.93% mean?
Jiangsu Innovative Ecological New Materials (HKSE:02116) has a Return-on-Tangible-Equity of 4.93% 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 Jiangsu Innovative Ecological New Materials and its competitors. This is 39% below median its historical median of 8.09. Over the past decade, Jiangsu Innovative Ecological New Materials' Return-on-Tangible-Equity has ranged from 3.71 to 31.65. According to the industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #742 out of 1574 companies in the Chemicals industry, placing it in the top 47.1%.
Is Jiangsu Innovative Ecological New Materials' Return-on-Tangible-Equity too high?
Jiangsu Innovative Ecological New Materials' current Return-on-Tangible-Equity of 4.93% is 39% below median its 10-year median of 8.09. Over the past 10 years, this metric has ranged from a low of 3.71 to a high of 31.65. The Chemicals industry median Return-on-Tangible-Equity is 6.10. Jiangsu Innovative Ecological New Materials' value of 4.93% is 19.1% below this industry median. Based on the distribution chart, Jiangsu Innovative Ecological New Materials ranks #742 out of 1574 companies in the Chemicals industry, which is above the industry midpoint. Overall, Jiangsu Innovative Ecological New Materials has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Innovative Ecological New Materials' Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Jiangsu Innovative Ecological New Materials ranks #742 out of 1574 companies for Return-on-Tangible-Equity. This puts Jiangsu Innovative Ecological New Materials in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.10. Jiangsu Innovative Ecological New Materials' value of 4.93% is 19.1% below this benchmark. Historically, Jiangsu Innovative Ecological New Materials' own Return-on-Tangible-Equity has ranged from 3.71 to 31.65 over the past decade. While the company's 10-year median is 8.09 vs. the industry median of 6.10, Jiangsu Innovative Ecological New Materials 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 a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 6.10, based on 1,574 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. Jiangsu Innovative Ecological New Materials's current Return-on-Tangible-Equity of 4.93% is 19.1% 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 Jiangsu Innovative Ecological New Materials and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 6.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangsu Innovative Ecological New Materials's current Return-on-Tangible-Equity is 4.93%, which is 39% below median its own 10-year median of 8.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Innovative Ecological New Materials stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials (HKSE:02116) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.43, compared to a current price of HK$0.71 — trading 65.1% above its estimated fair value. The current Return-on-Tangible-Equity is 4.93%, which is 39% below median its 10-year median of 8.09 and 19.1% below the Chemicals industry median of 6.10. Jiangsu Innovative Ecological New Materials' overall GF Score™ is 61/100 with 3 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 Jiangsu Innovative Ecological New Materials (HKSE:02116), the current Return-on-Tangible-Equity is 4.93% 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 Jiangsu Innovative Ecological New Materials (HKSE:02116) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangsu Innovative Ecological New Materials stock appears to be overvalued.
The current stock price of HK$0.71 is trading 65.1% above its estimated GF Value™ of HK$0.43.
GuruFocus considers Jiangsu Innovative Ecological New Materials to be Significantly Overvalued.
Key valuation signals for HKSE:02116:
Return-on-Tangible-Equity: 4.93% (39% below median its 10-year median of 8.09)
GF Value™: HK$0.43 vs. price of HK$0.71 (65.1% above fair value)
Industry Position: 19.1% below the Chemicals median (#742 of 1574)
No single metric tells the full story. See the HKSE:02116 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangsu Innovative Ecological New Materials Ltd develops, manufactures, and markets oil refining agents. The firm produces refining additives, oil additives, and other products. It offers and generates revenue from oil refining agents and fuel additives with desulfurizing agents, lubricity improvers, and metal passivation. The majority of the firm's revenue is generated from the sales of oil refining agents from Mainland China. The company operates in a single segment, which is the sale of oil refining agents and fuel additives.
61GF Score
Get the complete analysis for HKSE:02116
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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