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Guangzhou Xiao Noodles Catering Management CoHKSE:02408 -2.46%18 Return-on-Tangible-Equity is 26.80% as of Dec. 2025, which is 44% below its 10-year median of 48.18. GuruFocus rates HKSE:02408 with a GF Score™ of 18/100. The stock has 1 warning sign investors should review. Among 330 Restaurants companies, Guangzhou Xiao Noodles Catering Management Co ranks better than 76.67% on this metric.
HKSE:02408's Return-on-Tangible-Equity is ranked better than 76.67% of 330
companies
in the Restaurants industry
Industry Median: 8.715
vs HKSE:02408: 29.64
Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) 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.
Guangzhou Xiao Noodles Catering Management Co Return-on-Tangible-Equity Related Terms
Guangzhou Xiao Noodles Catering Management Co 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.
Guangzhou Xiao Noodles Catering Management Co Return-on-Tangible-Equity Chart
Guangzhou Xiao Noodles Catering Management Co Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
Return-on-Tangible-Equity
-158.86
124.94
73.47
22.88
Guangzhou Xiao Noodles Catering Management Co Semi-Annual Data
HKSE:02408 vs MCD, SBUX, YUM: Return-on-Tangible-Equity Comparison
For the Restaurants subindustry, Guangzhou Xiao Noodles Catering Management Co'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.
Guangzhou Xiao Noodles Catering Management Co Return-on-Tangible-Equity vs Restaurants 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 26.80% mean?
Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) has a Return-on-Tangible-Equity of 26.80% 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 Guangzhou Xiao Noodles Catering Management Co and its competitors. This is 44% below median its historical median of 48.18. According to the industry distribution chart, Guangzhou Xiao Noodles Catering Management Co ranks #77 out of 330 companies in the Restaurants industry, placing it in the top 23.3%.
Is Guangzhou Xiao Noodles Catering Management Co's Return-on-Tangible-Equity too high?
Guangzhou Xiao Noodles Catering Management Co's current Return-on-Tangible-Equity of 26.80% is 44% below median its 10-year median of 48.18. The Restaurants industry median Return-on-Tangible-Equity is 8.72. Guangzhou Xiao Noodles Catering Management Co's value of 26.80% is 207.5% above this industry median. Based on the distribution chart, Guangzhou Xiao Noodles Catering Management Co ranks #77 out of 330 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Guangzhou Xiao Noodles Catering Management Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Guangzhou Xiao Noodles Catering Management Co's Return-on-Tangible-Equity compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Guangzhou Xiao Noodles Catering Management Co ranks #77 out of 330 companies for Return-on-Tangible-Equity. This places Guangzhou Xiao Noodles Catering Management Co in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.72. Guangzhou Xiao Noodles Catering Management Co's value of 26.80% is 207.5% above this benchmark. While the company's 10-year median is 48.18 vs. the industry median of 8.72, Guangzhou Xiao Noodles Catering Management Co 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 Restaurants company?
The median Return-on-Tangible-Equity among Restaurants companies is 8.72, based on 330 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. Guangzhou Xiao Noodles Catering Management Co's current Return-on-Tangible-Equity of 26.80% is 207.5% 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 Guangzhou Xiao Noodles Catering Management Co and its competitors. For the Restaurants industry, the median Return-on-Tangible-Equity is 8.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangzhou Xiao Noodles Catering Management Co's current Return-on-Tangible-Equity is 26.80%, which is 44% below median its own 10-year median of 48.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangzhou Xiao Noodles Catering Management Co stock overvalued right now?
Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) has a current Return-on-Tangible-Equity of 26.80%. The current Return-on-Tangible-Equity is 26.80%, which is 44% below median its 10-year median of 48.18 and 207.5% above the Restaurants industry median of 8.72. Guangzhou Xiao Noodles Catering Management Co's overall GF Score™ is 18/100 with 1 warning sign 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 Guangzhou Xiao Noodles Catering Management Co (HKSE:02408), the current Return-on-Tangible-Equity is 26.80% 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.
Guangzhou Xiao Noodles Catering Management Co Business Description
Guangzhou Xiao Noodles Catering Management Co Ltd is a Chinese noodle restaurants operator in China and operates the Xiao Noodles brand domestically and overseas. It provides a diverse array of its Sichuan and Chongqing dishes throughout the day, encompassing breakfast, afternoon tea, and late-night snacks. The company operates self-operated restaurants and franchised restaurants in the Chinese Mainland, Hong Kong SAR and in Singapore. The self-operated restaurant operations generate revenue from dine-in service and delivery business; and franchised management generates revenue from royalty and franchising income and provision of service, and sales of food ingredients and restaurant supplies.
18GF 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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