Redwood Group (ROCO:8426) Return-on-Tangible-Equity: 28.25% (As of Dec. 2025) — 388% Above Median

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ROCO:8426 Redwood Group Ltd ROCO:8426
68 GF Score
Price NT$20.55
GF Value NT$50.22
Valuation Significantly Undervalued
! 4 Warning Signs
View Full Analysis

What is Redwood Group Return-on-Tangible-Equity?

Redwood Group ROCO:8426 +0.98% 68 Return-on-Tangible-Equity is 28.25% as of Dec. 2025, which is 388% above its 10-year median of 5.79. GuruFocus rates ROCO:8426 with a GF Score™ of 68/100 and a GF Value™ of NT$50.22 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 421 Furnishings, Fixtures & Appliances companies, Redwood Group ranks better than 62.47% 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. Redwood Group's annualized net income for the quarter that ended in Dec. 2025 was NT$338 Mil. Redwood Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$1,196 Mil. Therefore, Redwood Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 28.25%.

The historical rank and industry rank for Redwood Group's Return-on-Tangible-Equity or its related term are showing as below:

ROCO:8426' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -15.15   Med: 5.79   Max: 35.47
Current: 7.79

During the past 13 years, Redwood Group's highest Return-on-Tangible-Equity was 35.47%. The lowest was -15.15%. And the median was 5.79%.

ROCO:8426's Return-on-Tangible-Equity is ranked better than
62.47% of 421 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 5.07 vs ROCO:8426: 7.79

Redwood Group  (ROCO:8426) 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.


Redwood Group Return-on-Tangible-Equity Related Terms


Redwood Group Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Redwood Group'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.

Redwood Group Return-on-Tangible-Equity Chart

Redwood Group 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 0.79 4.32 35.47 21.36 7.26

Redwood Group Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
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 49.24 -10.23 -12.77 29.17 28.25

ROCO:8426 vs SN, SGI, MHK: Return-on-Tangible-Equity Comparison

For the Furnishings, Fixtures & Appliances subindustry, Redwood Group'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.


Redwood Group Return-on-Tangible-Equity vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Redwood Group's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Redwood Group's Return-on-Tangible-Equity falls into.


ROCO:8426
68GF Score
Redwood Group Ltd ROCO:8426
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Redwood Group Return-on-Tangible-Equity Calculation

Redwood Group'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 )
=92.997/( (1290.647+1272.971 )/ 2 )
=92.997/1281.809
=7.26 %

Redwood Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=337.94/( (1119.433+1272.971)/ 2 )
=337.94/1196.202
=28.25 %

* 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 28.25% mean?
Redwood Group (ROCO:8426) has a Return-on-Tangible-Equity of 28.25% 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 Redwood Group and its competitors. This is 388% above median its historical median of 5.79. According to the industry distribution chart, Redwood Group ranks #158 out of 421 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 37.5%.
Is Redwood Group's Return-on-Tangible-Equity too high?
Redwood Group's current Return-on-Tangible-Equity of 28.25% is 388% above median its 10-year median of 5.79. The Furnishings, Fixtures & Appliances industry median Return-on-Tangible-Equity is 5.07. Redwood Group's value of 28.25% is 457.2% above this industry median. Based on the distribution chart, Redwood Group ranks #158 out of 421 companies in the Furnishings, Fixtures & Appliances industry, which is above the industry midpoint. Overall, Redwood Group has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Redwood Group's Return-on-Tangible-Equity compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Redwood Group ranks #158 out of 421 companies for Return-on-Tangible-Equity. This puts Redwood Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.07. Redwood Group's value of 28.25% is 457.2% above this benchmark. While the company's 10-year median is 5.79 vs. the industry median of 5.07, Redwood Group 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 Furnishings, Fixtures & Appliances company?
The median Return-on-Tangible-Equity among Furnishings, Fixtures & Appliances companies is 5.07, based on 421 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. Redwood Group's current Return-on-Tangible-Equity of 28.25% is 457.2% 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 Redwood Group and its competitors. For the Furnishings, Fixtures & Appliances 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. Redwood Group's current Return-on-Tangible-Equity is 28.25%, which is 388% above median its own 10-year median of 5.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood Group stock overvalued right now?
Based on GuruFocus' analysis, Redwood Group (ROCO:8426) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$50.22, compared to a current price of NT$20.55 — trading 59.1% below its estimated fair value. The current Return-on-Tangible-Equity is 28.25%, which is 388% above median its 10-year median of 5.79 and 457.2% above the Furnishings, Fixtures & Appliances industry median of 5.07. Redwood Group's overall GF Score™ is 68/100 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 Redwood Group (ROCO:8426), the current Return-on-Tangible-Equity is 28.25% 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 Redwood Group (ROCO:8426) Overvalued in 2026?

Based on GuruFocus' analysis, Redwood Group stock appears to be undervalued. The current stock price of NT$20.55 is trading 59.1% below its estimated GF Value™ of NT$50.22. GuruFocus considers Redwood Group to be Significantly Undervalued.

Key valuation signals for ROCO:8426:

  • Return-on-Tangible-Equity: 28.25% (388% above median its 10-year median of 5.79)
  • GF Value™: NT$50.22 vs. price of NT$20.55 (59.1% below fair value)
  • GF Score™: 68/100 with 4 warning signs
  • Industry Position: 457.2% above the Furnishings, Fixtures & Appliances median (#158 of 421)

No single metric tells the full story. See the ROCO:8426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Redwood Group Business Description

Address No. 205, Section 1, South Road, 106, Room 1107, Da\'an District, Taipei, TWN, 729239
Redwood Group Ltd is a contract manufacturer of high-quality interior fittings. It is mainly engaged in the decoration of globally advance boutique brand stores. The Group operates in three principal geographical areas - Singapore, Malaysia, and the USA, other than that the company also operates in Asian, the Middle East, the Americas, and Europe.
68GF Score

Get the complete analysis for ROCO:8426

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

NT$20.55
Price
NT$50.22
GF Value