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Zibuyu GroupHKSE:02420 -3.59%92 Return-on-Tangible-Equity is 44.99% as of Dec. 2025, which is 17% above its 10-year median of 38.60. GuruFocus rates HKSE:02420 with a GF Score™ of 92/100 and a GF Value™ of HK$6.13 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,065 Retail - Cyclical companies, Zibuyu Group ranks better than 86.1% 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. Zibuyu Group's annualized net income for the quarter that ended in Dec. 2025 was HK$361 Mil. Zibuyu Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$802 Mil. Therefore, Zibuyu Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 44.99%.
The historical rank and industry rank for Zibuyu Group's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:02420'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -41.45 Med: 38.6 Max: 126.87
Current: 39.6
During the past 7 years, Zibuyu Group's highest Return-on-Tangible-Equity was 126.87%. The lowest was -41.45%. And the median was 38.60%.
HKSE:02420's Return-on-Tangible-Equity is ranked better than 86.1% of 1065
companies
in the Retail - Cyclical industry
Industry Median: 8.45
vs HKSE:02420: 39.60
Zibuyu Group (HKSE:02420) 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.
Zibuyu Group Return-on-Tangible-Equity Related Terms
Zibuyu Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zibuyu Group'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:02420 vs AMZN, BABA, PDD: Return-on-Tangible-Equity Comparison
For the Internet Retail subindustry, Zibuyu Group'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.
Zibuyu Group Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Zibuyu Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zibuyu Group'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 44.99% mean?
Zibuyu Group (HKSE:02420) has a Return-on-Tangible-Equity of 44.99% 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 Zibuyu Group and its competitors. This is 17% above median its historical median of 38.60. According to the industry distribution chart, Zibuyu Group ranks #148 out of 1065 companies in the Retail - Cyclical industry, placing it in the top 13.9%.
Is Zibuyu Group's Return-on-Tangible-Equity too high?
Zibuyu Group's current Return-on-Tangible-Equity of 44.99% is 17% above median its 10-year median of 38.60. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.45. Zibuyu Group's value of 44.99% is 432.4% above this industry median. Based on the distribution chart, Zibuyu Group ranks #148 out of 1065 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Zibuyu Group has a GF Score™ of 92/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zibuyu Group's Return-on-Tangible-Equity compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, Zibuyu Group ranks #148 out of 1065 companies for Return-on-Tangible-Equity. This places Zibuyu Group in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.45. Zibuyu Group's value of 44.99% is 432.4% above this benchmark. While the company's 10-year median is 38.60 vs. the industry median of 8.45, Zibuyu Group 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.45, based on 1,065 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. Zibuyu Group's current Return-on-Tangible-Equity of 44.99% is 432.4% 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 Zibuyu Group and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zibuyu Group's current Return-on-Tangible-Equity is 44.99%, which is 17% above median its own 10-year median of 38.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zibuyu Group stock overvalued right now?
Based on GuruFocus' analysis, Zibuyu Group (HKSE:02420) is currently considered Possible Value Trap. The stock's GF Value™ is HK$6.13, compared to a current price of HK$3.76 — trading 38.7% below its estimated fair value. The current Return-on-Tangible-Equity is 44.99%, which is 17% above median its 10-year median of 38.60 and 432.4% above the Retail - Cyclical industry median of 8.45. Zibuyu Group's overall GF Score™ is 92/100 with 4 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 Zibuyu Group (HKSE:02420), the current Return-on-Tangible-Equity is 44.99% 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 Zibuyu Group (HKSE:02420) Overvalued in 2026?
Based on GuruFocus' analysis, Zibuyu Group stock appears to be undervalued.
The current stock price of HK$3.76 is trading 38.7% below its estimated GF Value™ of HK$6.13.
GuruFocus considers Zibuyu Group to be Possible Value Trap.
Key valuation signals for HKSE:02420:
Return-on-Tangible-Equity: 44.99% (17% above median its 10-year median of 38.60)
GF Value™: HK$6.13 vs. price of HK$3.76 (38.7% below fair value)
Industry Position: 432.4% above the Retail - Cyclical median (#148 of 1065)
No single metric tells the full story. See the HKSE:02420 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zibuyu Group Ltd is an investment holding company, and its subsidiaries are engaged in the design, procurement, and sale of apparel, footwear, and related products. The group sources products from OEM suppliers based on its designs and sells them globally through third-party e-commerce platforms and its self-operated online stores. Its sales channels include platforms such as Amazon, TikTok, Temu, and other third-party e-commerce platforms, as well as its own online stores. Its geographical segments include North America, Asia, Europe, and Others.
92GF Score
Get the complete analysis for HKSE:02420
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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