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Kato (Hong Kong) HoldingsHKSE:02189 61 Return-on-Tangible-Equity is 3.24% as of Mar. 2026, which is 91% below its 10-year median of 37.87. GuruFocus rates HKSE:02189 with a GF Score™ of 61/100 and a GF Value™ of HK$0.53 (Fairly Valued). The stock has 6 warning signs investors should review. Among 578 Healthcare Providers & Services companies, Kato (Hong Kong) Holdings ranks worse than 58.48% on this metric.
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. Kato (Hong Kong) Holdings's annualized net income for the quarter that ended in Mar. 2026 was HK$14.5 Mil. Kato (Hong Kong) Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was HK$447.8 Mil. Therefore, Kato (Hong Kong) Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 3.24%.
The historical rank and industry rank for Kato (Hong Kong) Holdings's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:02189'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.02 Med: 37.87 Max: 270.59
Current: 7.71
During the past 11 years, Kato (Hong Kong) Holdings's highest Return-on-Tangible-Equity was 270.59%. The lowest was 5.02%. And the median was 37.87%.
HKSE:02189's Return-on-Tangible-Equity is ranked worse than 58.48% of 578
companies
in the Healthcare Providers & Services industry
Industry Median: 10.7
vs HKSE:02189: 7.71
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.
Kato (Hong Kong) Holdings Return-on-Tangible-Equity Related Terms
Kato (Hong Kong) Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Kato (Hong Kong) Holdings'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:02189 vs HCA, THC, DVA: Return-on-Tangible-Equity Comparison
For the Medical Care Facilities subindustry, Kato (Hong Kong) Holdings'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.
Kato (Hong Kong) Holdings Return-on-Tangible-Equity vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Kato (Hong Kong) Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kato (Hong Kong) Holdings'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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 3.24% mean?
Kato (Hong Kong) Holdings (HKSE:02189) has a Return-on-Tangible-Equity of 3.24% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Kato (Hong Kong) Holdings and its competitors. This is 91% below median its historical median of 37.87. Over the past decade, Kato (Hong Kong) Holdings' Return-on-Tangible-Equity has ranged from 5.02 to 270.59. According to the industry distribution chart, Kato (Hong Kong) Holdings ranks #338 out of 578 companies in the Healthcare Providers & Services industry, placing it in the top 58.5%.
Is Kato (Hong Kong) Holdings' Return-on-Tangible-Equity too high?
Kato (Hong Kong) Holdings' current Return-on-Tangible-Equity of 3.24% is 91% below median its 10-year median of 37.87. Over the past 10 years, this metric has ranged from a low of 5.02 to a high of 270.59. The Healthcare Providers & Services industry median Return-on-Tangible-Equity is 10.70. Kato (Hong Kong) Holdings' value of 3.24% is 69.7% below this industry median. Based on the distribution chart, Kato (Hong Kong) Holdings ranks #338 out of 578 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, Kato (Hong Kong) Holdings has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kato (Hong Kong) Holdings' Return-on-Tangible-Equity compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Kato (Hong Kong) Holdings ranks #338 out of 578 companies for Return-on-Tangible-Equity. This places Kato (Hong Kong) Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.70. Kato (Hong Kong) Holdings' value of 3.24% is 69.7% below this benchmark. Historically, Kato (Hong Kong) Holdings' own Return-on-Tangible-Equity has ranged from 5.02 to 270.59 over the past decade. While the company's 10-year median is 37.87 vs. the industry median of 10.70, Kato (Hong Kong) Holdings 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 Healthcare Providers & Services company?
The median Return-on-Tangible-Equity among Healthcare Providers & Services companies is 10.70, based on 578 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. Kato (Hong Kong) Holdings's current Return-on-Tangible-Equity of 3.24% is 69.7% 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 Kato (Hong Kong) Holdings and its competitors. For the Healthcare Providers & Services industry, the median Return-on-Tangible-Equity is 10.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kato (Hong Kong) Holdings's current Return-on-Tangible-Equity is 3.24%, which is 91% below median its own 10-year median of 37.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kato (Hong Kong) Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kato (Hong Kong) Holdings (HKSE:02189) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.53, compared to a current price of HK$0.49 — trading 7.5% below its estimated fair value. The current Return-on-Tangible-Equity is 3.24%, which is 91% below median its 10-year median of 37.87 and 69.7% below the Healthcare Providers & Services industry median of 10.70. Kato (Hong Kong) Holdings' overall GF Score™ is 61/100 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 Kato (Hong Kong) Holdings (HKSE:02189), the current Return-on-Tangible-Equity is 3.24% as of Mar. 2026. 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 Kato (Hong Kong) Holdings (HKSE:02189) Overvalued in 2026?
Based on GuruFocus' analysis, Kato (Hong Kong) Holdings stock appears to be undervalued.
The current stock price of HK$0.49 is trading 7.5% below its estimated GF Value™ of HK$0.53.
GuruFocus considers Kato (Hong Kong) Holdings to be Fairly Valued.
Key valuation signals for HKSE:02189:
Return-on-Tangible-Equity: 3.24% (91% below median its 10-year median of 37.87)
GF Value™: HK$0.53 vs. price of HK$0.49 (7.5% below fair value)
Industry Position: 69.7% below the Healthcare Providers & Services median (#338 of 578)
No single metric tells the full story. See the HKSE:02189 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kato (Hong Kong) Holdings Ltd is an established operator of residential care homes and daycare services for the elderly in Hong Kong. The company offers a wide range of residential care services for the elderly including; the provision of accommodation, professional nursing and care-taking services, nutritional management, medical services, physiotherapy and occupational therapy services, individual care plans and recreational services, and the sale of healthcare and medical goods and the provision of additional healthcare services to residents.
61GF Score
Get the complete analysis for HKSE:02189
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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