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Hengtong Optic-Electric CoSHSE:600487 -5.82%71 Return-on-Tangible-Equity is 14.87% as of Mar. 2026, which is 40% above its 10-year median of 10.59. GuruFocus rates SHSE:600487 with a GF Score™ of 71/100 and a GF Value™ of ¥22.43 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,383 Hardware companies, Hengtong Optic-Electric Co ranks better than 70.37% 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. Hengtong Optic-Electric Co's annualized net income for the quarter that ended in Mar. 2026 was ¥4,421 Mil. Hengtong Optic-Electric Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥29,742 Mil. Therefore, Hengtong Optic-Electric Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.87%.
The historical rank and industry rank for Hengtong Optic-Electric Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:600487'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.51 Med: 10.59 Max: 31
Current: 11.36
During the past 13 years, Hengtong Optic-Electric Co's highest Return-on-Tangible-Equity was 31.00%. The lowest was 7.51%. And the median was 10.59%.
SHSE:600487's Return-on-Tangible-Equity is ranked better than 70.37% of 2383
companies
in the Hardware industry
Industry Median: 5.36
vs SHSE:600487: 11.36
Hengtong Optic-Electric Co (SHSE:600487) 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.
Hengtong Optic-Electric Co Return-on-Tangible-Equity Related Terms
Hengtong Optic-Electric Co Return-on-Tangible-Equity Historical Data
* 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.
Hengtong Optic-Electric Co Return-on-Tangible-Equity Chart
SHSE:600487 vs CSCO, CIEN, MSI: Return-on-Tangible-Equity Comparison
For the Communication Equipment subindustry, Hengtong Optic-Electric 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.
Hengtong Optic-Electric Co Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Hengtong Optic-Electric Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hengtong Optic-Electric 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 14.87% mean?
Hengtong Optic-Electric Co (SHSE:600487) has a Return-on-Tangible-Equity of 14.87% 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 Hengtong Optic-Electric Co and its competitors. This is 40% above median its historical median of 10.59. Over the past decade, Hengtong Optic-Electric Co's Return-on-Tangible-Equity has ranged from 7.51 to 31.00. According to the industry distribution chart, Hengtong Optic-Electric Co ranks #706 out of 2383 companies in the Hardware industry, placing it in the top 29.6%.
Is Hengtong Optic-Electric Co's Return-on-Tangible-Equity too high?
Hengtong Optic-Electric Co's current Return-on-Tangible-Equity of 14.87% is 40% above median its 10-year median of 10.59. Over the past 10 years, this metric has ranged from a low of 7.51 to a high of 31.00. The Hardware industry median Return-on-Tangible-Equity is 5.36. Hengtong Optic-Electric Co's value of 14.87% is 177.4% above this industry median. Based on the distribution chart, Hengtong Optic-Electric Co ranks #706 out of 2383 companies in the Hardware industry, which is above the industry midpoint. Overall, Hengtong Optic-Electric Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hengtong Optic-Electric Co's Return-on-Tangible-Equity compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Hengtong Optic-Electric Co ranks #706 out of 2383 companies for Return-on-Tangible-Equity. This puts Hengtong Optic-Electric Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.36. Hengtong Optic-Electric Co's value of 14.87% is 177.4% above this benchmark. Historically, Hengtong Optic-Electric Co's own Return-on-Tangible-Equity has ranged from 7.51 to 31.00 over the past decade. While the company's 10-year median is 10.59 vs. the industry median of 5.36, Hengtong Optic-Electric 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.36, based on 2,383 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. Hengtong Optic-Electric Co's current Return-on-Tangible-Equity of 14.87% is 177.4% 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 Hengtong Optic-Electric Co and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hengtong Optic-Electric Co's current Return-on-Tangible-Equity is 14.87%, which is 40% above median its own 10-year median of 10.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hengtong Optic-Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Hengtong Optic-Electric Co (SHSE:600487) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥22.43, compared to a current price of ¥52.43 — trading 133.7% above its estimated fair value. The current Return-on-Tangible-Equity is 14.87%, which is 40% above median its 10-year median of 10.59 and 177.4% above the Hardware industry median of 5.36. Hengtong Optic-Electric Co's overall GF Score™ is 71/100 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 Hengtong Optic-Electric Co (SHSE:600487), the current Return-on-Tangible-Equity is 14.87% 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 Hengtong Optic-Electric Co (SHSE:600487) Overvalued in 2026?
Based on GuruFocus' analysis, Hengtong Optic-Electric Co stock appears to be overvalued.
The current stock price of ¥52.43 is trading 133.7% above its estimated GF Value™ of ¥22.43.
GuruFocus considers Hengtong Optic-Electric Co to be Significantly Overvalued.
Key valuation signals for SHSE:600487:
Return-on-Tangible-Equity: 14.87% (40% above median its 10-year median of 10.59)
GF Value™: ¥22.43 vs. price of ¥52.43 (133.7% above fair value)
Industry Position: 177.4% above the Hardware median (#706 of 2383)
No single metric tells the full story. See the SHSE:600487 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hengtong Optic-Electric Co Ltd provides fiber optic communication products in China and internationally. It offers optical rods, optical fiber, optical cable, optical devices, an optical network, ocean optical network products, data communication products, power transmission products, ocean engineering, quantum security communications, rail transit, and smart city products.
71GF Score
Get the complete analysis for SHSE:600487
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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