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Cheng Fwa Industrial CoROCO:5426 -3.16%57 Return-on-Tangible-Equity is 3.25% as of Dec. 2025, which is 64% above its 10-year median of 1.98. GuruFocus rates ROCO:5426 with a GF Score™ of 57/100 and a GF Value™ of NT$24.50 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,974 Industrial Products companies, Cheng Fwa Industrial Co ranks worse than 63.85% 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. Cheng Fwa Industrial Co's annualized net income for the quarter that ended in Dec. 2025 was NT$72 Mil. Cheng Fwa Industrial Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$2,208 Mil. Therefore, Cheng Fwa Industrial Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 3.25%.
The historical rank and industry rank for Cheng Fwa Industrial Co's Return-on-Tangible-Equity or its related term are showing as below:
ROCO:5426'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.63 Med: 1.98 Max: 8.27
Current: 3.34
During the past 13 years, Cheng Fwa Industrial Co's highest Return-on-Tangible-Equity was 8.27%. The lowest was -4.63%. And the median was 1.98%.
ROCO:5426's Return-on-Tangible-Equity is ranked worse than 63.85% of 2974
companies
in the Industrial Products industry
Industry Median: 6.775
vs ROCO:5426: 3.34
Cheng Fwa Industrial Co (ROCO:5426) 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.
Cheng Fwa Industrial Co Return-on-Tangible-Equity Related Terms
Cheng Fwa Industrial Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Cheng Fwa Industrial 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.
Cheng Fwa Industrial Co Return-on-Tangible-Equity Chart
ROCO:5426 vs CRS, ATI, MLI: Return-on-Tangible-Equity Comparison
For the Metal Fabrication subindustry, Cheng Fwa Industrial 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.
Cheng Fwa Industrial Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cheng Fwa Industrial Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Cheng Fwa Industrial 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 3.25% mean?
Cheng Fwa Industrial Co (ROCO:5426) has a Return-on-Tangible-Equity of 3.25% 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 Cheng Fwa Industrial Co and its competitors. This is 64% above median its historical median of 1.98. According to the industry distribution chart, Cheng Fwa Industrial Co ranks #1899 out of 2974 companies in the Industrial Products industry, placing it in the top 63.9%.
Is Cheng Fwa Industrial Co's Return-on-Tangible-Equity too high?
Cheng Fwa Industrial Co's current Return-on-Tangible-Equity of 3.25% is 64% above median its 10-year median of 1.98. The Industrial Products industry median Return-on-Tangible-Equity is 6.78. Cheng Fwa Industrial Co's value of 3.25% is 52% below this industry median. Based on the distribution chart, Cheng Fwa Industrial Co ranks #1899 out of 2974 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Cheng Fwa Industrial Co has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cheng Fwa Industrial Co's Return-on-Tangible-Equity compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Cheng Fwa Industrial Co ranks #1899 out of 2974 companies for Return-on-Tangible-Equity. This places Cheng Fwa Industrial Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.78. Cheng Fwa Industrial Co's value of 3.25% is 52% below this benchmark. While the company's 10-year median is 1.98 vs. the industry median of 6.78, Cheng Fwa Industrial Co has consistently been below 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 Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.78, based on 2,974 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. Cheng Fwa Industrial Co's current Return-on-Tangible-Equity of 3.25% is 52% below 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 Cheng Fwa Industrial Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cheng Fwa Industrial Co's current Return-on-Tangible-Equity is 3.25%, which is 64% above median its own 10-year median of 1.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cheng Fwa Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Cheng Fwa Industrial Co (ROCO:5426) is currently considered Fairly Valued. The stock's GF Value™ is NT$24.50, compared to a current price of NT$26.05 — trading 6.3% above its estimated fair value. The current Return-on-Tangible-Equity is 3.25%, which is 64% above median its 10-year median of 1.98 and 52% below the Industrial Products industry median of 6.78. Cheng Fwa Industrial Co's overall GF Score™ is 57/100 with 3 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 Cheng Fwa Industrial Co (ROCO:5426), the current Return-on-Tangible-Equity is 3.25% 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 Cheng Fwa Industrial Co (ROCO:5426) Overvalued in 2026?
Based on GuruFocus' analysis, Cheng Fwa Industrial Co stock appears to be overvalued.
The current stock price of NT$26.05 is trading 6.3% above its estimated GF Value™ of NT$24.50.
GuruFocus considers Cheng Fwa Industrial Co to be Fairly Valued.
Key valuation signals for ROCO:5426:
Return-on-Tangible-Equity: 3.25% (64% above median its 10-year median of 1.98)
GF Value™: NT$24.50 vs. price of NT$26.05 (6.3% above fair value)
Industry Position: 52% below the Industrial Products median (#1899 of 2974)
No single metric tells the full story. See the ROCO:5426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cheng Fwa Industrial Co Ltd manufactures and supplies precision-stamped metal parts for the computer, telecommunication, networking, and electronic industries. Its products include computer casings and related components, precision stampings, server-side rails, and plastic injection molding solutions, among others. Their core services comprise the following main areas: design and engineering, rapid prototyping, tooling development, precision metal stamping, finishing processing, and plastic injection. Geographically, the Group generates maximum revenue from America, followed by Taiwan, Asia, and other regions.
57GF Score
Get the complete analysis for ROCO:5426
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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