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NARI Technology CoSHSE:600406 -1.23%95 Return-on-Tangible-Equity is 18.59% as of Jun. 2026, which is 11% above its 10-year median of 16.73. GuruFocus rates SHSE:600406 with a GF Score™ of 95/100 and a GF Value™ of ¥29.22 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,977 Industrial Products companies, NARI Technology Co ranks better than 79.85% 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. NARI Technology Co's annualized net income for the quarter that ended in Jun. 2026 was ¥9,406 Mil. NARI Technology Co's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ¥50,594 Mil. Therefore, NARI Technology Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 18.59%.
The historical rank and industry rank for NARI Technology Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:600406'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 15.53 Med: 16.73 Max: 25.06
Current: 17.12
During the past 13 years, NARI Technology Co's highest Return-on-Tangible-Equity was 25.06%. The lowest was 15.53%. And the median was 16.73%.
SHSE:600406's Return-on-Tangible-Equity is ranked better than 79.85% of 2977
companies
in the Industrial Products industry
Industry Median: 6.99
vs SHSE:600406: 17.12
NARI Technology Co (SHSE:600406) 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.
NARI Technology Co Return-on-Tangible-Equity Related Terms
NARI Technology Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for NARI Technology 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.
NARI Technology Co Return-on-Tangible-Equity Chart
SHSE:600406 vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, NARI Technology 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.
NARI Technology Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, NARI Technology Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where NARI Technology 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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 18.59% mean?
NARI Technology Co (SHSE:600406) has a Return-on-Tangible-Equity of 18.59% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on NARI Technology Co and its competitors. This is 11% above median its historical median of 16.73. Over the past decade, NARI Technology Co's Return-on-Tangible-Equity has ranged from 15.53 to 25.06. According to the industry distribution chart, NARI Technology Co ranks #600 out of 2977 companies in the Industrial Products industry, placing it in the top 20.2%.
Is NARI Technology Co's Return-on-Tangible-Equity too high?
NARI Technology Co's current Return-on-Tangible-Equity of 18.59% is 11% above median its 10-year median of 16.73. Over the past 10 years, this metric has ranged from a low of 15.53 to a high of 25.06. The Industrial Products industry median Return-on-Tangible-Equity is 6.99. NARI Technology Co's value of 18.59% is 166% above this industry median. Based on the distribution chart, NARI Technology Co ranks #600 out of 2977 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, NARI Technology Co has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NARI Technology Co's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, NARI Technology Co ranks #600 out of 2977 companies for Return-on-Tangible-Equity. This places NARI Technology Co in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.99. NARI Technology Co's value of 18.59% is 166% above this benchmark. Historically, NARI Technology Co's own Return-on-Tangible-Equity has ranged from 15.53 to 25.06 over the past decade. While the company's 10-year median is 16.73 vs. the industry median of 6.99, NARI Technology 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.99, based on 2,977 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. NARI Technology Co's current Return-on-Tangible-Equity of 18.59% is 166% 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 NARI Technology Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NARI Technology Co's current Return-on-Tangible-Equity is 18.59%, which is 11% above median its own 10-year median of 16.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NARI Technology Co stock overvalued right now?
Based on GuruFocus' analysis, NARI Technology Co (SHSE:600406) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥29.22, compared to a current price of ¥22.41 — trading 23.3% below its estimated fair value. The current Return-on-Tangible-Equity is 18.59%, which is 11% above median its 10-year median of 16.73 and 166% above the Industrial Products industry median of 6.99. NARI Technology Co's overall GF Score™ is 95/100 with 2 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 NARI Technology Co (SHSE:600406), the current Return-on-Tangible-Equity is 18.59% as of Jun. 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 NARI Technology Co (SHSE:600406) Overvalued in 2026?
Based on GuruFocus' analysis, NARI Technology Co stock appears to be undervalued.
The current stock price of ¥22.41 is trading 23.3% below its estimated GF Value™ of ¥29.22.
GuruFocus considers NARI Technology Co to be Modestly Undervalued.
Key valuation signals for SHSE:600406:
Return-on-Tangible-Equity: 18.59% (11% above median its 10-year median of 16.73)
GF Value™: ¥29.22 vs. price of ¥22.41 (23.3% below fair value)
Industry Position: 166% above the Industrial Products median (#600 of 2977)
No single metric tells the full story. See the SHSE:600406 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NARI Technology Co Ltd is engaged in providing power & automation technologies in China. It operates in areas of power system automation, smart grid, renewable energy, railway automation, industrial control, & energy conservation & environment protection.
95GF Score
Get the complete analysis for SHSE:600406
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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