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China Meheco Group CoSHSE:600056 +1.47%63 Return-on-Tangible-Equity is 7.43% as of Mar. 2026, which is 43% below its 10-year median of 13.10. GuruFocus rates SHSE:600056 with a GF Score™ of 63/100 and a GF Value™ of ¥10.47 (Fairly Valued). The stock has 6 warning signs investors should review. Among 111 Medical Distribution companies, China Meheco Group Co ranks worse than 66.67% 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. China Meheco Group Co's annualized net income for the quarter that ended in Mar. 2026 was ¥729 Mil. China Meheco Group Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥9,811 Mil. Therefore, China Meheco Group Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.43%.
The historical rank and industry rank for China Meheco Group Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:600056'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.83 Med: 13.1 Max: 23.23
Current: 4.96
During the past 13 years, China Meheco Group Co's highest Return-on-Tangible-Equity was 23.23%. The lowest was 4.83%. And the median was 13.10%.
SHSE:600056's Return-on-Tangible-Equity is ranked worse than 66.67% of 111
companies
in the Medical Distribution industry
Industry Median: 8.81
vs SHSE:600056: 4.96
China Meheco Group Co (SHSE:600056) 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.
China Meheco Group Co Return-on-Tangible-Equity Related Terms
China Meheco Group Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for China Meheco Group 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.
China Meheco Group Co Return-on-Tangible-Equity Chart
SHSE:600056 vs MCK, CAH, COR: Return-on-Tangible-Equity Comparison
For the Medical Distribution subindustry, China Meheco Group 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.
China Meheco Group Co Return-on-Tangible-Equity vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, China Meheco Group Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where China Meheco Group 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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.43% mean?
China Meheco Group Co (SHSE:600056) has a Return-on-Tangible-Equity of 7.43% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on China Meheco Group Co and its competitors. This is 43% below median its historical median of 13.10. Over the past decade, China Meheco Group Co's Return-on-Tangible-Equity has ranged from 4.83 to 23.23. According to the industry distribution chart, China Meheco Group Co ranks #74 out of 111 companies in the Medical Distribution industry, placing it in the top 66.7%.
Is China Meheco Group Co's Return-on-Tangible-Equity too high?
China Meheco Group Co's current Return-on-Tangible-Equity of 7.43% is 43% below median its 10-year median of 13.10. Over the past 10 years, this metric has ranged from a low of 4.83 to a high of 23.23. The Medical Distribution industry median Return-on-Tangible-Equity is 8.81. China Meheco Group Co's value of 7.43% is 15.7% below this industry median. Based on the distribution chart, China Meheco Group Co ranks #74 out of 111 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, China Meheco Group Co has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Meheco Group Co's Return-on-Tangible-Equity compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, China Meheco Group Co ranks #74 out of 111 companies for Return-on-Tangible-Equity. This places China Meheco Group Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.81. China Meheco Group Co's value of 7.43% is 15.7% below this benchmark. Historically, China Meheco Group Co's own Return-on-Tangible-Equity has ranged from 4.83 to 23.23 over the past decade. While the company's 10-year median is 13.10 vs. the industry median of 8.81, China Meheco Group 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 a Medical Distribution company?
The median Return-on-Tangible-Equity among Medical Distribution companies is 8.81, based on 111 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. China Meheco Group Co's current Return-on-Tangible-Equity of 7.43% is 15.7% 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 China Meheco Group Co and its competitors. For the Medical Distribution industry, the median Return-on-Tangible-Equity is 8.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Meheco Group Co's current Return-on-Tangible-Equity is 7.43%, which is 43% below median its own 10-year median of 13.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Meheco Group Co stock overvalued right now?
Based on GuruFocus' analysis, China Meheco Group Co (SHSE:600056) is currently considered Fairly Valued. The stock's GF Value™ is ¥10.47, compared to a current price of ¥9.64 — trading 7.9% below its estimated fair value. The current Return-on-Tangible-Equity is 7.43%, which is 43% below median its 10-year median of 13.10 and 15.7% below the Medical Distribution industry median of 8.81. China Meheco Group Co's overall GF Score™ is 63/100 with 6 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 China Meheco Group Co (SHSE:600056), the current Return-on-Tangible-Equity is 7.43% as of Mar. 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 China Meheco Group Co (SHSE:600056) Overvalued in 2026?
Based on GuruFocus' analysis, China Meheco Group Co stock appears to be undervalued.
The current stock price of ¥9.64 is trading 7.9% below its estimated GF Value™ of ¥10.47.
GuruFocus considers China Meheco Group Co to be Fairly Valued.
Key valuation signals for SHSE:600056:
Return-on-Tangible-Equity: 7.43% (43% below median its 10-year median of 13.10)
GF Value™: ¥10.47 vs. price of ¥9.64 (7.9% below fair value)
Industry Position: 15.7% below the Medical Distribution median (#74 of 111)
No single metric tells the full story. See the SHSE:600056 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Meheco Group Co Ltd is engaged in the distribution and trading of botanical medicines, medical instruments, and pharmaceuticals. It offers botanic medicines and herbal products, as well as exports of natural medicines, including herbs, spices, plant extracts, bee products, and Chinese traditional medicines. The company's business scope covers the whole industry chain, from research and development, cultivation and processing, manufacturing, distribution, and logistics to international trading, academic promotion, and technical service. The corporation provides trading services for customers in the pharmaceutical and chemical field, covering APIs, preparations, biologicals, blood products, and others.
63GF Score
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