Cathay Financial Holding CoLSE:CFHS 55 Return-on-Tangible-Equity is 14.58% as of Dec. 2025, which is 35% above its 10-year median of 10.81. GuruFocus rates LSE:CFHS with a GF Score™ of 55/100 and a GF Value™ of $15.56. The stock has 4 warning signs investors should review. Among 500 Insurance companies, Cathay Financial Holding Co ranks worse than 53.2% 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. Cathay Financial Holding Co's annualized net income for the quarter that ended in Dec. 2025 was $4,149 Mil. Cathay Financial Holding Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $28,463 Mil. Therefore, Cathay Financial Holding Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 14.58%.
The historical rank and industry rank for Cathay Financial Holding Co's Return-on-Tangible-Equity or its related term are showing as below:
LSE:CFHS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.35 Med: 10.81 Max: 16.51
Current: 12.82
During the past 13 years, Cathay Financial Holding Co's highest Return-on-Tangible-Equity was 16.51%. The lowest was 5.35%. And the median was 10.81%.
LSE:CFHS's Return-on-Tangible-Equity is ranked worse than 53.2% of 500
companies
in the Insurance industry
Industry Median: 13.53
vs LSE:CFHS: 12.82
Cathay Financial Holding Co (LSE:CFHS) 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.
Cathay Financial Holding Co Return-on-Tangible-Equity Related Terms
Cathay Financial Holding Co Return-on-Tangible-Equity Historical Data
* 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.
Cathay Financial Holding Co Return-on-Tangible-Equity Chart
LSE:CFHS vs AFL, MET, PRU: Return-on-Tangible-Equity Comparison
For the Insurance - Life subindustry, Cathay Financial Holding 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.
Cathay Financial Holding Co Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Cathay Financial Holding Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Cathay Financial Holding 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 four times the quarterly (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 14.58% mean?
Cathay Financial Holding Co (LSE:CFHS) has a Return-on-Tangible-Equity of 14.58% 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 Cathay Financial Holding Co and its competitors. This is 35% above median its historical median of 10.81. Over the past decade, Cathay Financial Holding Co's Return-on-Tangible-Equity has ranged from 5.35 to 16.51. According to the industry distribution chart, Cathay Financial Holding Co ranks #266 out of 500 companies in the Insurance industry, placing it in the top 53.2%.
Is Cathay Financial Holding Co's Return-on-Tangible-Equity too high?
Cathay Financial Holding Co's current Return-on-Tangible-Equity of 14.58% is 35% above median its 10-year median of 10.81. Over the past 10 years, this metric has ranged from a low of 5.35 to a high of 16.51. The Insurance industry median Return-on-Tangible-Equity is 13.53. Cathay Financial Holding Co's value of 14.58% is 7.8% above this industry median. Based on the distribution chart, Cathay Financial Holding Co ranks #266 out of 500 companies in the Insurance industry, which is below the industry midpoint. Overall, Cathay Financial Holding Co has a GF Score™ of 55/100, reflecting its overall financial health beyond just this single metric.
How does Cathay Financial Holding Co's Return-on-Tangible-Equity compare to AFL and MET?
According to the Insurance industry distribution chart, Cathay Financial Holding Co ranks #266 out of 500 companies for Return-on-Tangible-Equity. This places Cathay Financial Holding Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 13.53. Cathay Financial Holding Co's value of 14.58% is 7.8% above this benchmark. Historically, Cathay Financial Holding Co's own Return-on-Tangible-Equity has ranged from 5.35 to 16.51 over the past decade. While the company's 10-year median is 10.81 vs. the industry median of 13.53, Cathay Financial Holding 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 an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.53, based on 500 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. Cathay Financial Holding Co's current Return-on-Tangible-Equity of 14.58% is 7.8% 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 Cathay Financial Holding Co and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Financial Holding Co's current Return-on-Tangible-Equity is 14.58%, which is 35% above median its own 10-year median of 10.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Financial Holding Co stock overvalued right now?
Cathay Financial Holding Co (LSE:CFHS) has a current Return-on-Tangible-Equity of 14.58%. The stock's GF Value™ is $15.56, compared to a current price of $19.20 — trading 23.4% above its estimated fair value. The current Return-on-Tangible-Equity is 14.58%, which is 35% above median its 10-year median of 10.81 and 7.8% above the Insurance industry median of 13.53. Cathay Financial Holding Co's overall GF Score™ is 55/100 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 Cathay Financial Holding Co (LSE:CFHS), the current Return-on-Tangible-Equity is 14.58% 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 Cathay Financial Holding Co (LSE:CFHS) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Financial Holding Co stock appears to be overvalued.
The current stock price of $19.20 is trading 23.4% above its estimated GF Value™ of $15.56.
Key valuation signals for LSE:CFHS:
Return-on-Tangible-Equity: 14.58% (35% above median its 10-year median of 10.81)
GF Value™: $15.56 vs. price of $19.20 (23.4% above fair value)
Industry Position: 7.8% above the Insurance median (#266 of 500)
No single metric tells the full story. See the LSE:CFHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Financial Holding Co Ltd is a financial holding company. It has five operating segments Banking segment is engaged in permitted businesses of commercial banks; Life insurance segments is engaged in traditional insurance, investment-linked insurance and interest-sensitive sales of annuity insurance and providing financial planning services and policy loan services; Property insurance segment is engaged in fire insurance, marine insurance, land and air insurance, liability insurance, financial guarantee insurance, reinsurance and other insurance; Securities segment is engaged in brokerage, dealership, and underwriting business; and Other operating segment of which majority of revenue is from Life insurance. Geographically revenue comes from Taiwan.
55GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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