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Hong Leong FinanceSGX:S41 -0.79%59 Return-on-Tangible-Equity is 2.90% as of Dec. 2025, which is 39% below its 10-year median of 4.77. GuruFocus rates SGX:S41 with a GF Score™ of 59/100 and a GF Value™ of S$2.26 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,522 Banks companies, Hong Leong Finance ranks worse than 90.14% 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. Hong Leong Finance's annualized net income for the quarter that ended in Dec. 2025 was S$61.0 Mil. Hong Leong Finance's average shareholder tangible equity for the quarter that ended in Dec. 2025 was S$2,105.6 Mil. Therefore, Hong Leong Finance's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 2.90%.
The historical rank and industry rank for Hong Leong Finance's Return-on-Tangible-Equity or its related term are showing as below:
SGX:S41'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.97 Med: 4.77 Max: 6.55
Current: 2.98
During the past 13 years, Hong Leong Finance's highest Return-on-Tangible-Equity was 6.55%. The lowest was 2.97%. And the median was 4.77%.
SGX:S41's Return-on-Tangible-Equity is ranked worse than 90.14% of 1522
companies
in the Banks industry
Industry Median: 11.395
vs SGX:S41: 2.98
Hong Leong Finance (SGX:S41) 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.
Hong Leong Finance Return-on-Tangible-Equity Related Terms
Hong Leong Finance Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hong Leong Finance'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.
Hong Leong Finance Return-on-Tangible-Equity Chart
SGX:S41 vs PNC, USB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Hong Leong Finance'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.
Hong Leong Finance Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Hong Leong Finance's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hong Leong Finance'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 two times the semi-annual (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 2.90% mean?
Hong Leong Finance (SGX:S41) has a Return-on-Tangible-Equity of 2.90% 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 Hong Leong Finance and its competitors. This is 39% below median its historical median of 4.77. Over the past decade, Hong Leong Finance's Return-on-Tangible-Equity has ranged from 2.97 to 6.55. According to the industry distribution chart, Hong Leong Finance ranks #1372 out of 1522 companies in the Banks industry, placing it in the top 90.1%.
Is Hong Leong Finance's Return-on-Tangible-Equity too high?
Hong Leong Finance's current Return-on-Tangible-Equity of 2.90% is 39% below median its 10-year median of 4.77. Over the past 10 years, this metric has ranged from a low of 2.97 to a high of 6.55. The Banks industry median Return-on-Tangible-Equity is 11.40. Hong Leong Finance's value of 2.90% is 74.6% below this industry median. Based on the distribution chart, Hong Leong Finance ranks #1372 out of 1522 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Hong Leong Finance has a GF Score™ of 59/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Finance's Return-on-Tangible-Equity compare to PNC and USB?
According to the Banks industry distribution chart, Hong Leong Finance ranks #1372 out of 1522 companies for Return-on-Tangible-Equity. This places Hong Leong Finance in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.40. Hong Leong Finance's value of 2.90% is 74.6% below this benchmark. Historically, Hong Leong Finance's own Return-on-Tangible-Equity has ranged from 2.97 to 6.55 over the past decade. While the company's 10-year median is 4.77 vs. the industry median of 11.40, Hong Leong Finance 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 a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.40, based on 1,522 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. Hong Leong Finance's current Return-on-Tangible-Equity of 2.90% is 74.6% 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 Hong Leong Finance and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Leong Finance's current Return-on-Tangible-Equity is 2.90%, which is 39% below median its own 10-year median of 4.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Finance stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Finance (SGX:S41) is currently considered Modestly Overvalued. The stock's GF Value™ is S$2.26, compared to a current price of S$2.51 — trading 11.1% above its estimated fair value. The current Return-on-Tangible-Equity is 2.90%, which is 39% below median its 10-year median of 4.77 and 74.6% below the Banks industry median of 11.40. Hong Leong Finance's overall GF Score™ is 59/100 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 Hong Leong Finance (SGX:S41), the current Return-on-Tangible-Equity is 2.90% 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 Hong Leong Finance (SGX:S41) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Leong Finance stock appears to be overvalued.
The current stock price of S$2.51 is trading 11.1% above its estimated GF Value™ of S$2.26.
GuruFocus considers Hong Leong Finance to be Modestly Overvalued.
Key valuation signals for SGX:S41:
Return-on-Tangible-Equity: 2.90% (39% below median its 10-year median of 4.77)
GF Value™: S$2.26 vs. price of S$2.51 (11.1% above fair value)
Industry Position: 74.6% below the Banks median (#1372 of 1522)
No single metric tells the full story. See the SGX:S41 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Leong Finance Ltd is a financial institution. The activities of the company are related to financing business and the provision of corporate advisory services. The principal activities of the subsidiaries are the provision of nominee services. It operates exclusively in Singapore. The company's service offerings include SME loans, Personal loans, Deposites and savings, and corporate finance.
59GF Score
Get the complete analysis for SGX:S41
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