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SMIT HoldingsHKSE:02239 -1.89%40 Return-on-Tangible-Equity is 21.18% as of Dec. 2025, which is 268% above its 10-year median of 5.76. GuruFocus rates HKSE:02239 with a GF Score™ of 40/100 and a GF Value™ of HK$0.82 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 992 Semiconductors companies, SMIT Holdings ranks worse than 76.41% 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. SMIT Holdings's annualized net income for the quarter that ended in Dec. 2025 was HK$161.8 Mil. SMIT Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$763.8 Mil. Therefore, SMIT Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 21.18%.
The historical rank and industry rank for SMIT Holdings's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:02239'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -30.97 Med: 5.76 Max: 46.89
Current: -5.4
During the past 13 years, SMIT Holdings's highest Return-on-Tangible-Equity was 46.89%. The lowest was -30.97%. And the median was 5.76%.
HKSE:02239's Return-on-Tangible-Equity is ranked worse than 76.41% of 992
companies
in the Semiconductors industry
Industry Median: 6.72
vs HKSE:02239: -5.40
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.
SMIT Holdings Return-on-Tangible-Equity Related Terms
SMIT Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for SMIT 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:02239 vs NVDA, AVGO, MU: Return-on-Tangible-Equity Comparison
For the Semiconductors subindustry, SMIT 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.
SMIT Holdings Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, SMIT Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where SMIT 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 (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 21.18% mean?
SMIT Holdings (HKSE:02239) has a Return-on-Tangible-Equity of 21.18% 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 SMIT Holdings and its competitors. This is 268% above median its historical median of 5.76. According to the industry distribution chart, SMIT Holdings ranks #758 out of 992 companies in the Semiconductors industry, placing it in the top 76.4%.
Is SMIT Holdings' Return-on-Tangible-Equity too high?
SMIT Holdings' current Return-on-Tangible-Equity of 21.18% is 268% above median its 10-year median of 5.76. The Semiconductors industry median Return-on-Tangible-Equity is 6.72. SMIT Holdings' value of 21.18% is 215.2% above this industry median. Based on the distribution chart, SMIT Holdings ranks #758 out of 992 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, SMIT Holdings has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SMIT Holdings' Return-on-Tangible-Equity compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, SMIT Holdings ranks #758 out of 992 companies for Return-on-Tangible-Equity. This places SMIT Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.72. SMIT Holdings' value of 21.18% is 215.2% above this benchmark. While the company's 10-year median is 5.76 vs. the industry median of 6.72, SMIT Holdings has consistently been above 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 Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 6.72, based on 992 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. SMIT Holdings's current Return-on-Tangible-Equity of 21.18% is 215.2% 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 SMIT Holdings and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SMIT Holdings's current Return-on-Tangible-Equity is 21.18%, which is 268% above median its own 10-year median of 5.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SMIT Holdings stock overvalued right now?
Based on GuruFocus' analysis, SMIT Holdings (HKSE:02239) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.82, compared to a current price of HK$1.30 — trading 58.5% above its estimated fair value. The current Return-on-Tangible-Equity is 21.18%, which is 268% above median its 10-year median of 5.76 and 215.2% above the Semiconductors industry median of 6.72. SMIT Holdings' overall GF Score™ is 40/100 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 SMIT Holdings (HKSE:02239), the current Return-on-Tangible-Equity is 21.18% 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 SMIT Holdings (HKSE:02239) Overvalued in 2026?
Based on GuruFocus' analysis, SMIT Holdings stock appears to be overvalued.
The current stock price of HK$1.30 is trading 58.5% above its estimated GF Value™ of HK$0.82.
GuruFocus considers SMIT Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:02239:
Return-on-Tangible-Equity: 21.18% (268% above median its 10-year median of 5.76)
GF Value™: HK$0.82 vs. price of HK$1.30 (58.5% above fair value)
Industry Position: 215.2% above the Semiconductors median (#758 of 992)
No single metric tells the full story. See the HKSE:02239 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SMIT Holdings Ltd is an investment holding company. The company is principally engaged in the development and sales of conditional access modules; research, development and sales of smart sensing-oriented products and solution; and provision of integrated circuit solutions. The company has four reportable segments: CAM, Intelligent Sense, Investments, and Other businesses. The company generates the majority of its revenue from the CAM segment is engaged in the development and sales of security products that enable secure distribution and delivery of digital content to television. Geographically, the company generates the majority of its revenue from Europe, followed by China (including Hong Kong) and Others.
40GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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