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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. Kao Fong Machinery Co's annualized net income for the quarter that ended in Dec. 2025 was NT$-50 Mil. Kao Fong Machinery Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$1,812 Mil. Therefore, Kao Fong Machinery Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -2.77%.
The historical rank and industry rank for Kao Fong Machinery Co's Return-on-Tangible-Equity or its related term are showing as below:
ROCO:4510'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -5.92 Med: 2.81 Max: 5.96
Current: -5.91
During the past 13 years, Kao Fong Machinery Co's highest Return-on-Tangible-Equity was 5.96%. The lowest was -5.92%. And the median was 2.81%.
ROCO:4510's Return-on-Tangible-Equity is ranked worse than 83.13% of 2969
companies
in the Industrial Products industry
Industry Median: 6.76
vs ROCO:4510: -5.91
Kao Fong Machinery Co (ROCO:4510) 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.
Kao Fong Machinery Co Return-on-Tangible-Equity Related Terms
Kao Fong Machinery Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Kao Fong Machinery 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.
Kao Fong Machinery Co Return-on-Tangible-Equity Chart
ROCO:4510 vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Kao Fong Machinery 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.
Kao Fong Machinery Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kao Fong Machinery Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kao Fong Machinery 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 -2.77% mean?
Kao Fong Machinery Co (ROCO:4510) has a Return-on-Tangible-Equity of -2.77% 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 Kao Fong Machinery Co and its competitors. According to the industry distribution chart, Kao Fong Machinery Co ranks #2468 out of 2969 companies in the Industrial Products industry, placing it in the top 83.1%.
Is Kao Fong Machinery Co's Return-on-Tangible-Equity too high?
Kao Fong Machinery Co's current Return-on-Tangible-Equity is -2.77%. Based on the distribution chart, Kao Fong Machinery Co ranks #2468 out of 2969 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Kao Fong Machinery Co has a GF Score™ of 52/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kao Fong Machinery Co's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Kao Fong Machinery Co ranks #2468 out of 2969 companies for Return-on-Tangible-Equity. This places Kao Fong Machinery Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.76. 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 Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.76, based on 2,969 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 Kao Fong Machinery Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kao Fong Machinery Co's current Return-on-Tangible-Equity is -2.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kao Fong Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Kao Fong Machinery Co (ROCO:4510) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$30.71, compared to a current price of NT$38.10 — trading 24.1% above its estimated fair value. The current Return-on-Tangible-Equity is -2.77%. Kao Fong Machinery Co's overall GF Score™ is 52/100 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 Kao Fong Machinery Co (ROCO:4510), the current Return-on-Tangible-Equity is -2.77% 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 Kao Fong Machinery Co (ROCO:4510) Overvalued in 2026?
Based on GuruFocus' analysis, Kao Fong Machinery Co stock appears to be overvalued.
The current stock price of NT$38.10 is trading 24.1% above its estimated GF Value™ of NT$30.71.
GuruFocus considers Kao Fong Machinery Co to be Modestly Overvalued.
Key valuation signals for ROCO:4510:
Return-on-Tangible-Equity: -2.77%
GF Value™: NT$30.71 vs. price of NT$38.10 (24.1% above fair value)
No single metric tells the full story. See the ROCO:4510 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kao Fong Machinery Co Ltd is engaged in the manufacture and distribution of machine tools and machinery equipment in Taiwan. The products of the company consist of Double Column Machining Center, vertical machining centers, horizontal machining centers, numerical control milling machines, bridge machining centers, and other machinery.
52GF Score
Get the complete analysis for ROCO:4510
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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