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Neutech GroupHKSE:09616 +0.23%84 Return-on-Tangible-Equity is 21.72% as of Dec. 2025, which is 52% below its 10-year median of 45.16. GuruFocus rates HKSE:09616 with a GF Score™ of 84/100 and a GF Value™ of HK$3.46 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 247 Education companies, Neutech Group ranks better than 65.59% 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. Neutech Group's annualized net income for the quarter that ended in Dec. 2025 was HK$444 Mil. Neutech Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$2,043 Mil. Therefore, Neutech Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 21.72%.
The historical rank and industry rank for Neutech Group's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:09616'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.61 Med: 45.16 Max: 83.22
Current: 22.33
During the past 9 years, Neutech Group's highest Return-on-Tangible-Equity was 83.22%. The lowest was 17.61%. And the median was 45.16%.
HKSE:09616's Return-on-Tangible-Equity is ranked better than 65.59% of 247
companies
in the Education industry
Industry Median: 12.49
vs HKSE:09616: 22.33
Neutech Group (HKSE:09616) 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.
Neutech Group Return-on-Tangible-Equity Related Terms
Neutech Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Neutech 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:09616 vs EDU, TAL, LAUR: Return-on-Tangible-Equity Comparison
For the Education & Training Services subindustry, Neutech 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.
Neutech Group Return-on-Tangible-Equity vs Education Industry
For the Education industry and Consumer Defensive sector, Neutech Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Neutech 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 21.72% mean?
Neutech Group (HKSE:09616) has a Return-on-Tangible-Equity of 21.72% 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 Neutech Group and its competitors. This is 52% below median its historical median of 45.16. Over the past decade, Neutech Group's Return-on-Tangible-Equity has ranged from 17.61 to 83.22. According to the industry distribution chart, Neutech Group ranks #85 out of 247 companies in the Education industry, placing it in the top 34.4%.
Is Neutech Group's Return-on-Tangible-Equity too high?
Neutech Group's current Return-on-Tangible-Equity of 21.72% is 52% below median its 10-year median of 45.16. Over the past 10 years, this metric has ranged from a low of 17.61 to a high of 83.22. The Education industry median Return-on-Tangible-Equity is 12.49. Neutech Group's value of 21.72% is 73.9% above this industry median. Based on the distribution chart, Neutech Group ranks #85 out of 247 companies in the Education industry, which is above the industry midpoint. Overall, Neutech Group has a GF Score™ of 84/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Neutech Group's Return-on-Tangible-Equity compare to EDU and TAL?
According to the Education industry distribution chart, Neutech Group ranks #85 out of 247 companies for Return-on-Tangible-Equity. This puts Neutech Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 12.49. Neutech Group's value of 21.72% is 73.9% above this benchmark. Historically, Neutech Group's own Return-on-Tangible-Equity has ranged from 17.61 to 83.22 over the past decade. While the company's 10-year median is 45.16 vs. the industry median of 12.49, Neutech 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 an Education company?
The median Return-on-Tangible-Equity among Education companies is 12.49, based on 247 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. Neutech Group's current Return-on-Tangible-Equity of 21.72% is 73.9% 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 Neutech Group and its competitors. For the Education industry, the median Return-on-Tangible-Equity is 12.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neutech Group's current Return-on-Tangible-Equity is 21.72%, which is 52% below median its own 10-year median of 45.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neutech Group stock overvalued right now?
Based on GuruFocus' analysis, Neutech Group (HKSE:09616) is currently considered Possible Value Trap. The stock's GF Value™ is HK$3.46, compared to a current price of HK$2.14 — trading 38.2% below its estimated fair value. The current Return-on-Tangible-Equity is 21.72%, which is 52% below median its 10-year median of 45.16 and 73.9% above the Education industry median of 12.49. Neutech Group's overall GF Score™ is 84/100 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 Neutech Group (HKSE:09616), the current Return-on-Tangible-Equity is 21.72% 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 Neutech Group (HKSE:09616) Overvalued in 2026?
Based on GuruFocus' analysis, Neutech Group stock appears to be undervalued.
The current stock price of HK$2.14 is trading 38.2% below its estimated GF Value™ of HK$3.46.
GuruFocus considers Neutech Group to be Possible Value Trap.
Key valuation signals for HKSE:09616:
Return-on-Tangible-Equity: 21.72% (52% below median its 10-year median of 45.16)
GF Value™: HK$3.46 vs. price of HK$2.14 (38.2% below fair value)
Industry Position: 73.9% above the Education median (#85 of 247)
No single metric tells the full story. See the HKSE:09616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Neutech Group Ltd is a China-based investment holding company principally engaged in providing full-time formal higher education services, continuing education services, as well as education resources and apprenticeship programmes. Its full-time formal higher education services and continuing education services are operated by three universities and eight training schools. Its education resources and apprenticeship programme are offered by few of its subsidiaries. Its operating segments are as follows: education services; medical services; industry management and services; and elderly care technology and services. It generates maximum revenue from Education services segment. The Group operated within one geographical location and all of its revenue is also generated from Chinese mainland.
84GF Score
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