LHSW (Lianhe Sowell International Group) Return-on-Tangible-Equity: -10.20% (As of Sep. 2025)


LHSW Lianhe Sowell International Group Ltd LHSW
20 GF Score
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What is Lianhe Sowell International Group Return-on-Tangible-Equity?

Lianhe Sowell International Group LHSW +1.69% 20 Return-on-Tangible-Equity is -10.20% as of Sep. 2025. GuruFocus rates LHSW with a GF Score™ of 20/100. The stock has 5 warning signs investors should review. Among 2,468 Software companies, Lianhe Sowell International Group ranks better than 50.53% 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. Lianhe Sowell International Group's annualized net income for the quarter that ended in Sep. 2025 was $-1.47 Mil. Lianhe Sowell International Group's average shareholder tangible equity for the quarter that ended in Sep. 2025 was $14.37 Mil. Therefore, Lianhe Sowell International Group's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2025 was -10.20%.

The historical rank and industry rank for Lianhe Sowell International Group's Return-on-Tangible-Equity or its related term are showing as below:

LHSW' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -29.82   Med: 41.56   Max: 70.77
Current: 8.91

During the past 4 years, Lianhe Sowell International Group's highest Return-on-Tangible-Equity was 70.77%. The lowest was -29.82%. And the median was 41.56%.

LHSW's Return-on-Tangible-Equity is ranked better than
50.53% of 2468 companies
in the Software industry
Industry Median: 8.605 vs LHSW: 8.91

Lianhe Sowell International Group  (NAS:LHSW) 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.


Lianhe Sowell International Group Return-on-Tangible-Equity Related Terms


Lianhe Sowell International Group Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Lianhe Sowell International 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.

Lianhe Sowell International Group Return-on-Tangible-Equity Chart

Lianhe Sowell International Group Annual Data
Trend Mar22 Mar23 Mar24 Mar25
Return-on-Tangible-Equity
-29.82 70.77 50.88 32.23

Lianhe Sowell International Group Semi-Annual Data
Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
Return-on-Tangible-Equity Get a 7-Day Free Trial 66.62 35.12 28.34 35.20 -10.20

LHSW vs HUBC, TGCB, OLB: Return-on-Tangible-Equity Comparison

For the Software - Infrastructure subindustry, Lianhe Sowell International 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.


Lianhe Sowell International Group Return-on-Tangible-Equity vs Software Industry

For the Software industry and Technology sector, Lianhe Sowell International Group's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Lianhe Sowell International Group's Return-on-Tangible-Equity falls into.


LHSW
20GF Score
Lianhe Sowell International Group Ltd LHSW
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
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Lianhe Sowell International Group Return-on-Tangible-Equity Calculation

Lianhe Sowell International Group's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=3.125/( (7.837+11.554 )/ 2 )
=3.125/9.6955
=32.23 %

Lianhe Sowell International Group's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2025 )  (Q: Mar. 2025 )(Q: Sep. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2025 )  (Q: Mar. 2025 )(Q: Sep. 2025 )
=-1.466/( (11.554+17.185)/ 2 )
=-1.466/14.3695
=-10.20 %

* 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 (Sep. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of -10.20% mean?
Lianhe Sowell International Group (LHSW) has a Return-on-Tangible-Equity of -10.20% as of Sep. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lianhe Sowell International Group and its competitors. According to the industry distribution chart, Lianhe Sowell International Group ranks #1221 out of 2468 companies in the Software industry, placing it in the top 49.5%.
Is Lianhe Sowell International Group's Return-on-Tangible-Equity too high?
Lianhe Sowell International Group's current Return-on-Tangible-Equity is -10.20%. Based on the distribution chart, Lianhe Sowell International Group ranks #1221 out of 2468 companies in the Software industry, which is above the industry midpoint. Overall, Lianhe Sowell International Group has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Lianhe Sowell International Group's Return-on-Tangible-Equity compare to HUBC and TGCB?
According to the Software industry distribution chart, Lianhe Sowell International Group ranks #1221 out of 2468 companies for Return-on-Tangible-Equity. This puts Lianhe Sowell International Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.61. 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 8.61, based on 2,468 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 Lianhe Sowell International Group and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lianhe Sowell International Group's current Return-on-Tangible-Equity is -10.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lianhe Sowell International Group stock overvalued right now?
Lianhe Sowell International Group (LHSW) has a current Return-on-Tangible-Equity of -10.20%. The current Return-on-Tangible-Equity is -10.20%. Lianhe Sowell International Group's overall GF Score™ is 20/100 with 5 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 Lianhe Sowell International Group (LHSW), the current Return-on-Tangible-Equity is -10.20% as of Sep. 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.

Lianhe Sowell International Group Business Description

Address No. 3388 Binhai Avenue, 15th Floor, Sannuo Smart Building, Binhai Community, Nanshan District, Shenzhen, CHN
Lianhe Sowell International Group Ltd is a holding company and operates its business through its subsidiary. It is a provider of machine vision products and solutions in China that invent and integrate technologies and solutions that address some of the critical manufacturing and distribution challenges, such as precision and accuracy required in manufacturing of electronic products. The company categorize machine vision products in four categories based on their application settings: Industrial Machine Vision, Artificial Intelligence (Face Recognition and AI Behavior Analysis), Intelligent Weak Current (Building Intelligence and Intelligent Transportation) and Electronic Customs Clearance.
20GF Score

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