Lihtai Construction & Development Co (ROCO:5520) Return-on-Tangible-Equity: 21.01% (As of Jun. 2026) — 31% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ROCO:5520 Lihtai Construction & Development Co Ltd ROCO:5520
90 GF Score
Price NT$82.80
GF Value NT$86.36
Valuation Fairly Valued
! 2 Warning Signs
View Full Analysis

What is Lihtai Construction & Development Co Return-on-Tangible-Equity?

Lihtai Construction & Development Co ROCO:5520 90 Return-on-Tangible-Equity is 21.01% as of Jun. 2026, which is 31% above its 10-year median of 15.99. GuruFocus rates ROCO:5520 with a GF Score™ of 90/100 and a GF Value™ of NT$86.36 (Fairly Valued). The stock has 2 warning signs investors should review. Among 398 Building Materials companies, Lihtai Construction & Development Co ranks better than 89.2% 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. Lihtai Construction & Development Co's annualized net income for the quarter that ended in Jun. 2026 was NT$637 Mil. Lihtai Construction & Development Co's average shareholder tangible equity for the quarter that ended in Jun. 2026 was NT$3,033 Mil. Therefore, Lihtai Construction & Development Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 21.01%.

The historical rank and industry rank for Lihtai Construction & Development Co's Return-on-Tangible-Equity or its related term are showing as below:

ROCO:5520' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.47   Med: 15.99   Max: 21.91
Current: 21.91

During the past 13 years, Lihtai Construction & Development Co's highest Return-on-Tangible-Equity was 21.91%. The lowest was 3.47%. And the median was 15.99%.

ROCO:5520's Return-on-Tangible-Equity is ranked better than
89.2% of 398 companies
in the Building Materials industry
Industry Median: 5.07 vs ROCO:5520: 21.91

Lihtai Construction & Development Co  (ROCO:5520) 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.


Lihtai Construction & Development Co Return-on-Tangible-Equity Related Terms


Lihtai Construction & Development Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Lihtai Construction & Development 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.

Lihtai Construction & Development Co Return-on-Tangible-Equity Chart

Lihtai Construction & Development Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.73 16.89 20.50 21.15 20.99

Lihtai Construction & Development Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.73 23.18 16.83 20.62 21.01

ROCO:5520 vs CRH, VMC, MLM: Return-on-Tangible-Equity Comparison

For the Building Materials subindustry, Lihtai Construction & Development 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.


Lihtai Construction & Development Co Return-on-Tangible-Equity vs Building Materials Industry

For the Building Materials industry and Basic Materials sector, Lihtai Construction & Development Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Lihtai Construction & Development Co's Return-on-Tangible-Equity falls into.


ROCO:5520
90GF Score
Lihtai Construction & Development Co Ltd ROCO:5520
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Lihtai Construction & Development Co Return-on-Tangible-Equity Calculation

Lihtai Construction & Development Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=598.12/( (2695.674+3002.936 )/ 2 )
=598.12/2849.305
=20.99 %

Lihtai Construction & Development Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=637.168/( (2779.899+3286.602)/ 2 )
=637.168/3033.2505
=21.01 %

* 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 (Jun. 2026) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 21.01% mean?
Lihtai Construction & Development Co (ROCO:5520) has a Return-on-Tangible-Equity of 21.01% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lihtai Construction & Development Co and its competitors. This is 31% above median its historical median of 15.99. Over the past decade, Lihtai Construction & Development Co's Return-on-Tangible-Equity has ranged from 3.47 to 21.91. According to the industry distribution chart, Lihtai Construction & Development Co ranks #43 out of 398 companies in the Building Materials industry, placing it in the top 10.8%.
Is Lihtai Construction & Development Co's Return-on-Tangible-Equity too high?
Lihtai Construction & Development Co's current Return-on-Tangible-Equity of 21.01% is 31% above median its 10-year median of 15.99. Over the past 10 years, this metric has ranged from a low of 3.47 to a high of 21.91. The Building Materials industry median Return-on-Tangible-Equity is 5.07. Lihtai Construction & Development Co's value of 21.01% is 314.4% above this industry median. Based on the distribution chart, Lihtai Construction & Development Co ranks #43 out of 398 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Lihtai Construction & Development Co has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lihtai Construction & Development Co's Return-on-Tangible-Equity compare to CRH and VMC?
According to the Building Materials industry distribution chart, Lihtai Construction & Development Co ranks #43 out of 398 companies for Return-on-Tangible-Equity. This places Lihtai Construction & Development Co in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.07. Lihtai Construction & Development Co's value of 21.01% is 314.4% above this benchmark. Historically, Lihtai Construction & Development Co's own Return-on-Tangible-Equity has ranged from 3.47 to 21.91 over the past decade. While the company's 10-year median is 15.99 vs. the industry median of 5.07, Lihtai Construction & Development 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 a Building Materials company?
The median Return-on-Tangible-Equity among Building Materials companies is 5.07, based on 398 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. Lihtai Construction & Development Co's current Return-on-Tangible-Equity of 21.01% is 314.4% 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 Lihtai Construction & Development Co and its competitors. For the Building Materials industry, the median Return-on-Tangible-Equity is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lihtai Construction & Development Co's current Return-on-Tangible-Equity is 21.01%, which is 31% above median its own 10-year median of 15.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lihtai Construction & Development Co stock overvalued right now?
Based on GuruFocus' analysis, Lihtai Construction & Development Co (ROCO:5520) is currently considered Fairly Valued. The stock's GF Value™ is NT$86.36, compared to a current price of NT$82.80 — trading 4.1% below its estimated fair value. The current Return-on-Tangible-Equity is 21.01%, which is 31% above median its 10-year median of 15.99 and 314.4% above the Building Materials industry median of 5.07. Lihtai Construction & Development Co's overall GF Score™ is 90/100 with 2 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 Lihtai Construction & Development Co (ROCO:5520), the current Return-on-Tangible-Equity is 21.01% as of Jun. 2026. 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 Lihtai Construction & Development Co (ROCO:5520) Overvalued in 2026?

Based on GuruFocus' analysis, Lihtai Construction & Development Co stock appears to be undervalued. The current stock price of NT$82.80 is trading 4.1% below its estimated GF Value™ of NT$86.36. GuruFocus considers Lihtai Construction & Development Co to be Fairly Valued.

Key valuation signals for ROCO:5520:

  • Return-on-Tangible-Equity: 21.01% (31% above median its 10-year median of 15.99)
  • GF Value™: NT$86.36 vs. price of NT$82.80 (4.1% below fair value)
  • GF Score™: 90/100 with 2 warning signs
  • Industry Position: 314.4% above the Building Materials median (#43 of 398)

No single metric tells the full story. See the ROCO:5520 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Lihtai Construction & Development Co Business Description

Address No. 7, Section 7, Yanping North Road, Shilin District, Taipei, TWN
Lihtai Construction & Development Co Ltd is engaged in the manufacture and distribution of pre-mix concrete and other concrete products in Taiwan. Its products are used for various properties, roads, bridges, and other construction projects.
90GF Score

Get the complete analysis for ROCO:5520

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$82.80
Price
NT$86.36
GF Value