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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. E&R Engineering's annualized net income for the quarter that ended in Dec. 2025 was NT$276 Mil. E&R Engineering's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$2,579 Mil. Therefore, E&R Engineering's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 10.72%.
The historical rank and industry rank for E&R Engineering's Return-on-Tangible-Equity or its related term are showing as below:
ROCO:8027'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -17.91 Med: -0.37 Max: 15.95
Current: -3.7
During the past 13 years, E&R Engineering's highest Return-on-Tangible-Equity was 15.95%. The lowest was -17.91%. And the median was -0.37%.
ROCO:8027's Return-on-Tangible-Equity is ranked worse than 81.19% of 2972
companies
in the Industrial Products industry
Industry Median: 6.775
vs ROCO:8027: -3.70
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.
E&R Engineering Return-on-Tangible-Equity Related Terms
E&R Engineering Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for E&R Engineering'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.
ROCO:8027 vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, E&R Engineering'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.
E&R Engineering Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, E&R Engineering's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where E&R Engineering'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 10.72% mean?
E&R Engineering (ROCO:8027) has a Return-on-Tangible-Equity of 10.72% 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 E&R Engineering and its competitors. According to the industry distribution chart, E&R Engineering ranks #2413 out of 2972 companies in the Industrial Products industry, placing it in the top 81.2%.
Is E&R Engineering's Return-on-Tangible-Equity too high?
E&R Engineering's current Return-on-Tangible-Equity is 10.72%. The Industrial Products industry median Return-on-Tangible-Equity is 6.78. E&R Engineering's value of 10.72% is 58.2% above this industry median. Based on the distribution chart, E&R Engineering ranks #2413 out of 2972 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, E&R Engineering has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does E&R Engineering's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, E&R Engineering ranks #2413 out of 2972 companies for Return-on-Tangible-Equity. This places E&R Engineering in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.78. E&R Engineering's value of 10.72% is 58.2% above this benchmark. 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 2,972 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. E&R Engineering's current Return-on-Tangible-Equity of 10.72% is 58.2% 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 E&R Engineering 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. E&R Engineering's current Return-on-Tangible-Equity is 10.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is E&R Engineering stock overvalued right now?
Based on GuruFocus' analysis, E&R Engineering (ROCO:8027) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$102.74, compared to a current price of NT$208.50 — trading 102.9% above its estimated fair value. The current Return-on-Tangible-Equity is 10.72% and 58.2% above the Industrial Products industry median of 6.78. E&R Engineering's overall GF Score™ is 46/100 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 E&R Engineering (ROCO:8027), the current Return-on-Tangible-Equity is 10.72% 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 E&R Engineering (ROCO:8027) Overvalued in 2026?
Based on GuruFocus' analysis, E&R Engineering stock appears to be overvalued.
The current stock price of NT$208.50 is trading 102.9% above its estimated GF Value™ of NT$102.74.
GuruFocus considers E&R Engineering to be Significantly Overvalued.
Key valuation signals for ROCO:8027:
Return-on-Tangible-Equity: 10.72%
GF Value™: NT$102.74 vs. price of NT$208.50 (102.9% above fair value)
Industry Position: 58.2% above the Industrial Products median (#2413 of 2972)
No single metric tells the full story. See the ROCO:8027 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
E&R Engineering Corp engages mainly in the planning, designing, manufacturing, installing, and selling of automatic machines, related components, computer software, and pollution control equipment. Its main product offerings include laser and plasma equipment for semiconductor, LED, and passive component industries; laboratory testing equipment, flexible printed circuit equipment, and semiconductor packaging solutions. The Group operates in the following reportable segments: Automation Equipment, which generates the maximum revenue, Flexible Printed Circuit (FPC), Semiconductor Packaging Materials, and Others. Geographically, it generates maximum revenue from Taiwan, and the rest from Hong Kong and Mainland China, Southeast Asia, America, Europe, and other regions.
46GF Score
Get the complete analysis for ROCO:8027
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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