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Beijing Tongrentang CoSHSE:600085 -0.41%81 Return-on-Tangible-Equity is 14.44% as of Mar. 2026, which is 11% above its 10-year median of 13.06. GuruFocus rates SHSE:600085 with a GF Score™ of 81/100 and a GF Value™ of ¥35.95 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 896 Drug Manufacturers companies, Beijing Tongrentang Co ranks better than 51.79% 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. Beijing Tongrentang Co's annualized net income for the quarter that ended in Mar. 2026 was ¥1,885 Mil. Beijing Tongrentang Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥13,054 Mil. Therefore, Beijing Tongrentang Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.44%.
The historical rank and industry rank for Beijing Tongrentang Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:600085'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.36 Med: 13.06 Max: 14.34
Current: 8.36
During the past 13 years, Beijing Tongrentang Co's highest Return-on-Tangible-Equity was 14.34%. The lowest was 8.36%. And the median was 13.06%.
SHSE:600085's Return-on-Tangible-Equity is ranked better than 51.79% of 896
companies
in the Drug Manufacturers industry
Industry Median: 7.575
vs SHSE:600085: 8.36
Beijing Tongrentang Co (SHSE:600085) 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.
Beijing Tongrentang Co Return-on-Tangible-Equity Related Terms
Beijing Tongrentang Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Beijing Tongrentang 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.
Beijing Tongrentang Co Return-on-Tangible-Equity Chart
SHSE:600085 vs ZTS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Beijing Tongrentang 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.
Beijing Tongrentang Co Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Beijing Tongrentang Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Beijing Tongrentang 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 14.44% mean?
Beijing Tongrentang Co (SHSE:600085) has a Return-on-Tangible-Equity of 14.44% 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 Beijing Tongrentang Co and its competitors. This is 11% above median its historical median of 13.06. Over the past decade, Beijing Tongrentang Co's Return-on-Tangible-Equity has ranged from 8.36 to 14.34. According to the industry distribution chart, Beijing Tongrentang Co ranks #432 out of 896 companies in the Drug Manufacturers industry, placing it in the top 48.2%.
Is Beijing Tongrentang Co's Return-on-Tangible-Equity too high?
Beijing Tongrentang Co's current Return-on-Tangible-Equity of 14.44% is 11% above median its 10-year median of 13.06. Over the past 10 years, this metric has ranged from a low of 8.36 to a high of 14.34. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.58. Beijing Tongrentang Co's value of 14.44% is 90.6% above this industry median. Based on the distribution chart, Beijing Tongrentang Co ranks #432 out of 896 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Beijing Tongrentang Co has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Beijing Tongrentang Co's Return-on-Tangible-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Beijing Tongrentang Co ranks #432 out of 896 companies for Return-on-Tangible-Equity. This puts Beijing Tongrentang Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.58. Beijing Tongrentang Co's value of 14.44% is 90.6% above this benchmark. Historically, Beijing Tongrentang Co's own Return-on-Tangible-Equity has ranged from 8.36 to 14.34 over the past decade. While the company's 10-year median is 13.06 vs. the industry median of 7.58, Beijing Tongrentang 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 Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.58, based on 896 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. Beijing Tongrentang Co's current Return-on-Tangible-Equity of 14.44% is 90.6% 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 Beijing Tongrentang Co and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beijing Tongrentang Co's current Return-on-Tangible-Equity is 14.44%, which is 11% above median its own 10-year median of 13.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beijing Tongrentang Co stock overvalued right now?
Based on GuruFocus' analysis, Beijing Tongrentang Co (SHSE:600085) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥35.95, compared to a current price of ¥24.35 — trading 32.3% below its estimated fair value. The current Return-on-Tangible-Equity is 14.44%, which is 11% above median its 10-year median of 13.06 and 90.6% above the Drug Manufacturers industry median of 7.58. Beijing Tongrentang Co's overall GF Score™ is 81/100 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 Beijing Tongrentang Co (SHSE:600085), the current Return-on-Tangible-Equity is 14.44% 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 Beijing Tongrentang Co (SHSE:600085) Overvalued in 2026?
Based on GuruFocus' analysis, Beijing Tongrentang Co stock appears to be undervalued.
The current stock price of ¥24.35 is trading 32.3% below its estimated GF Value™ of ¥35.95.
GuruFocus considers Beijing Tongrentang Co to be Significantly Undervalued.
Key valuation signals for SHSE:600085:
Return-on-Tangible-Equity: 14.44% (11% above median its 10-year median of 13.06)
GF Value™: ¥35.95 vs. price of ¥24.35 (32.3% below fair value)
Industry Position: 90.6% above the Drug Manufacturers median (#432 of 896)
No single metric tells the full story. See the SHSE:600085 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Beijing Tongrentang Co Ltd is a China-based company operating in the traditional Chinese medicinal industry. The company produces modern pharmaceuticals and operates retail businesses and medical services. The company's main products consist of Liuwei Dihuang series, Tongren Dahuoluo series, Tongren Niuhuang Qingxin series, Angong Niuhuang series, and Donkey-hide gelatin series. It distributes its products under the brand of Tongrentang.
81GF Score
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