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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. Reconova Technologies Co's annualized net income for the quarter that ended in Dec. 2025 was HK$-74.3 Mil. Reconova Technologies Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$130.0 Mil. Therefore, Reconova Technologies Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -57.14%.
The historical rank and industry rank for Reconova Technologies Co's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:07656'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -57.14 Med: -25.28 Max: 7.91
Current: -57.14
During the past 3 years, Reconova Technologies Co's highest Return-on-Tangible-Equity was 7.91%. The lowest was -57.14%. And the median was -25.28%.
HKSE:07656's Return-on-Tangible-Equity is ranked worse than 87.96% of 2484
companies
in the Software industry
Industry Median: 8.91
vs HKSE:07656: -57.14
Reconova Technologies Co (HKSE:07656) 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.
Reconova Technologies Co Return-on-Tangible-Equity Related Terms
Reconova Technologies Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Reconova Technologies 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.
Reconova Technologies Co Return-on-Tangible-Equity Chart
Reconova Technologies Co Annual Data
Trend
Dec23
Dec24
Dec25
Return-on-Tangible-Equity
-25.28
7.91
-57.14
Reconova Technologies Co Semi-Annual Data
Dec23
Dec24
Dec25
Return-on-Tangible-Equity
-25.28
7.91
-57.14
HKSE:07656 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Reconova Technologies 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.
Reconova Technologies Co Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Reconova Technologies Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Reconova Technologies 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 one times the 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 -57.14% mean?
Reconova Technologies Co (HKSE:07656) has a Return-on-Tangible-Equity of -57.14% 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 Reconova Technologies Co and its competitors. According to the industry distribution chart, Reconova Technologies Co ranks #2185 out of 2484 companies in the Software industry, placing it in the top 88%.
Is Reconova Technologies Co's Return-on-Tangible-Equity too high?
Reconova Technologies Co's current Return-on-Tangible-Equity is -57.14%. Based on the distribution chart, Reconova Technologies Co ranks #2185 out of 2484 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Reconova Technologies Co has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Reconova Technologies Co's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Reconova Technologies Co ranks #2185 out of 2484 companies for Return-on-Tangible-Equity. This places Reconova Technologies Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.91. 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 8.91, based on 2,484 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 Reconova Technologies Co and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reconova Technologies Co's current Return-on-Tangible-Equity is -57.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reconova Technologies Co stock overvalued right now?
Reconova Technologies Co (HKSE:07656) has a current Return-on-Tangible-Equity of -57.14%. The current Return-on-Tangible-Equity is -57.14%. Reconova Technologies Co's overall GF Score™ is 11/100 with 2 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 Reconova Technologies Co (HKSE:07656), the current Return-on-Tangible-Equity is -57.14% 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.
Reconova Technologies Co Ltd is an AI company that provides visual AI technologies and products for enterprise clients. It is engaged in the research and development, design and sale of Visual Intelligents, commercial robots and intelligent passage devices. The company's product offerings include visual perception, visual cognition, and visual reasoning solutions applied across sectors including civil aviation, commercial spaces, and driving safety. The majority of the company's revenue is derived from the sale of Intelligent Civil Aviation, which covers the entire passenger journey including check-in, security screening, boarding, and customer service. Geographically, the maximum revenue is generated from the Chinese Mainland.
11GF Score
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