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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. Flowing Cloud Technology's annualized net income for the quarter that ended in Dec. 2025 was HK$-538.2 Mil. Flowing Cloud Technology's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$1,203.7 Mil. Therefore, Flowing Cloud Technology's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -44.71%.
The historical rank and industry rank for Flowing Cloud Technology's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:06610'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -32.88 Med: 24.99 Max: 46.54
Current: -24.12
During the past 7 years, Flowing Cloud Technology's highest Return-on-Tangible-Equity was 46.54%. The lowest was -32.88%. And the median was 24.99%.
HKSE:06610's Return-on-Tangible-Equity is ranked worse than 81.58% of 2492
companies
in the Software industry
Industry Median: 9.72
vs HKSE:06610: -24.12
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.
Flowing Cloud Technology Return-on-Tangible-Equity Related Terms
Flowing Cloud Technology Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Flowing Cloud Technology'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:06610 vs CRM, SHOP, UBER: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Flowing Cloud Technology'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.
Flowing Cloud Technology Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Flowing Cloud Technology's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Flowing Cloud Technology'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 -44.71% mean?
Flowing Cloud Technology (HKSE:06610) has a Return-on-Tangible-Equity of -44.71% 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 Flowing Cloud Technology and its competitors. According to the industry distribution chart, Flowing Cloud Technology ranks #2033 out of 2492 companies in the Software industry, placing it in the top 81.6%.
Is Flowing Cloud Technology's Return-on-Tangible-Equity too high?
Flowing Cloud Technology's current Return-on-Tangible-Equity is -44.71%. Based on the distribution chart, Flowing Cloud Technology ranks #2033 out of 2492 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Flowing Cloud Technology has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Flowing Cloud Technology's Return-on-Tangible-Equity compare to CRM and SHOP?
According to the Software industry distribution chart, Flowing Cloud Technology ranks #2033 out of 2492 companies for Return-on-Tangible-Equity. This places Flowing Cloud Technology in the lower half of its industry. The industry median Return-on-Tangible-Equity is 9.72. 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 9.72, based on 2,492 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. 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 Flowing Cloud Technology and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Flowing Cloud Technology's current Return-on-Tangible-Equity is -44.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Flowing Cloud Technology stock overvalued right now?
Based on GuruFocus' analysis, Flowing Cloud Technology (HKSE:06610) is currently considered Possible Value Trap. The stock's GF Value™ is HK$4.65, compared to a current price of HK$0.83 — trading 82.2% below its estimated fair value. The current Return-on-Tangible-Equity is -44.71%. Flowing Cloud Technology's overall GF Score™ is 74/100 with 9 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 Flowing Cloud Technology (HKSE:06610), the current Return-on-Tangible-Equity is -44.71% 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 Flowing Cloud Technology (HKSE:06610) Overvalued in 2026?
Based on GuruFocus' analysis, Flowing Cloud Technology stock appears to be undervalued.
The current stock price of HK$0.83 is trading 82.2% below its estimated GF Value™ of HK$4.65.
GuruFocus considers Flowing Cloud Technology to be Possible Value Trap.
Key valuation signals for HKSE:06610:
Return-on-Tangible-Equity: -44.71%
GF Value™: HK$4.65 vs. price of HK$0.83 (82.2% below fair value)
No single metric tells the full story. See the HKSE:06610 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Flowing Cloud Technology Ltd is a supplier of the Metaverse scene application tier in China. It is a smart marketing technology service provider in China. It uses AR/VR engine, AI behavior algorithm, cloud computing and other technical capabilities to empower the business development of enterprises in various vertical industries such as e-commerce, education, and cultural tourism.
74GF Score
Get the complete analysis for HKSE:06610
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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