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Bama Tea CoHKSE:06980 +4.73%23 Return-on-Tangible-Equity is 14.41% as of Dec. 2025, which is 36% below its 10-year median of 22.40. GuruFocus rates HKSE:06980 with a GF Score™ of 23/100. The stock has 1 warning sign investors should review. Among 1,887 Consumer Packaged Goods companies, Bama Tea Co ranks better than 74.46% 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. Bama Tea Co's annualized net income for the quarter that ended in Dec. 2025 was HK$227 Mil. Bama Tea Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$1,572 Mil. Therefore, Bama Tea Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 14.41%.
The historical rank and industry rank for Bama Tea Co's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:06980'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 16.25 Med: 22.4 Max: 24.89
Current: 16.98
During the past 4 years, Bama Tea Co's highest Return-on-Tangible-Equity was 24.89%. The lowest was 16.25%. And the median was 22.40%.
HKSE:06980's Return-on-Tangible-Equity is ranked better than 74.46% of 1887
companies
in the Consumer Packaged Goods industry
Industry Median: 8.05
vs HKSE:06980: 16.98
Bama Tea Co (HKSE:06980) 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.
Bama Tea Co Return-on-Tangible-Equity Related Terms
Bama Tea Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Bama Tea Co'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:06980 vs KHC, GIS: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Bama Tea 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.
Bama Tea Co Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Bama Tea Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Bama Tea Co'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 14.41% mean?
Bama Tea Co (HKSE:06980) has a Return-on-Tangible-Equity of 14.41% 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 Bama Tea Co and its competitors. This is 36% below median its historical median of 22.40. Over the past decade, Bama Tea Co's Return-on-Tangible-Equity has ranged from 16.25 to 24.89. According to the industry distribution chart, Bama Tea Co ranks #482 out of 1887 companies in the Consumer Packaged Goods industry, placing it in the top 25.5%.
Is Bama Tea Co's Return-on-Tangible-Equity too high?
Bama Tea Co's current Return-on-Tangible-Equity of 14.41% is 36% below median its 10-year median of 22.40. Over the past 10 years, this metric has ranged from a low of 16.25 to a high of 24.89. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 8.05. Bama Tea Co's value of 14.41% is 79% above this industry median. Based on the distribution chart, Bama Tea Co ranks #482 out of 1887 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Bama Tea Co has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Bama Tea Co's Return-on-Tangible-Equity compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Bama Tea Co ranks #482 out of 1887 companies for Return-on-Tangible-Equity. This puts Bama Tea Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.05. Bama Tea Co's value of 14.41% is 79% above this benchmark. Historically, Bama Tea Co's own Return-on-Tangible-Equity has ranged from 16.25 to 24.89 over the past decade. While the company's 10-year median is 22.40 vs. the industry median of 8.05, Bama Tea 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 Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 8.05, based on 1,887 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. Bama Tea Co's current Return-on-Tangible-Equity of 14.41% is 79% 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 Bama Tea Co and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 8.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bama Tea Co's current Return-on-Tangible-Equity is 14.41%, which is 36% below median its own 10-year median of 22.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bama Tea Co stock overvalued right now?
Bama Tea Co (HKSE:06980) has a current Return-on-Tangible-Equity of 14.41%. The current Return-on-Tangible-Equity is 14.41%, which is 36% below median its 10-year median of 22.40 and 79% above the Consumer Packaged Goods industry median of 8.05. Bama Tea Co's overall GF Score™ is 23/100 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 Bama Tea Co (HKSE:06980), the current Return-on-Tangible-Equity is 14.41% 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.
Bama Tea Co Ltd is principally engaged in the processing, production, and sales of tea leaves and other tea products in the PRC. The company generates revenue through processing, production and sales of tea leaves and other tea products such as Sales of tea leaves, Sales of tea ware, Sales of tea snacks, and Sales of other products. Geographically, it derives all its revenue from PRC.
23GF Score
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