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SHSE:600671's Return-on-Tangible-Equity is ranked better than 85.54% of 899
companies
in the Drug Manufacturers industry
Industry Median: 7.95
vs SHSE:600671: 27.49
Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671) 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.
Hangzhou TianMuShan Pharmaceutical Enterprise Co Return-on-Tangible-Equity Related Terms
Hangzhou TianMuShan Pharmaceutical Enterprise 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.
Hangzhou TianMuShan Pharmaceutical Enterprise Co Return-on-Tangible-Equity Chart
Hangzhou TianMuShan Pharmaceutical Enterprise Co Annual Data
SHSE:600671 vs LLY, JNJ, ABBV: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - General subindustry, Hangzhou TianMuShan Pharmaceutical Enterprise 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.
Hangzhou TianMuShan Pharmaceutical Enterprise Co Return-on-Tangible-Equity vs Drug Manufacturers Industry
* 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 23.37% mean?
Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671) has a Return-on-Tangible-Equity of 23.37% 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 Hangzhou TianMuShan Pharmaceutical Enterprise Co and its competitors. According to the industry distribution chart, Hangzhou TianMuShan Pharmaceutical Enterprise Co ranks #130 out of 899 companies in the Drug Manufacturers industry, placing it in the top 14.5%.
Is Hangzhou TianMuShan Pharmaceutical Enterprise Co's Return-on-Tangible-Equity too high?
Hangzhou TianMuShan Pharmaceutical Enterprise Co's current Return-on-Tangible-Equity is 23.37%. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.95. Hangzhou TianMuShan Pharmaceutical Enterprise Co's value of 23.37% is 194% above this industry median. Based on the distribution chart, Hangzhou TianMuShan Pharmaceutical Enterprise Co ranks #130 out of 899 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Hangzhou TianMuShan Pharmaceutical Enterprise Co has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hangzhou TianMuShan Pharmaceutical Enterprise Co's Return-on-Tangible-Equity compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Hangzhou TianMuShan Pharmaceutical Enterprise Co ranks #130 out of 899 companies for Return-on-Tangible-Equity. This places Hangzhou TianMuShan Pharmaceutical Enterprise Co in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.95. Hangzhou TianMuShan Pharmaceutical Enterprise Co's value of 23.37% is 194% above this benchmark. 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 7.95, based on 899 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. Hangzhou TianMuShan Pharmaceutical Enterprise Co's current Return-on-Tangible-Equity of 23.37% is 194% 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 Hangzhou TianMuShan Pharmaceutical Enterprise Co and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hangzhou TianMuShan Pharmaceutical Enterprise Co's current Return-on-Tangible-Equity is 23.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou TianMuShan Pharmaceutical Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥15.01, compared to a current price of ¥20.13 — trading 34.1% above its estimated fair value. The current Return-on-Tangible-Equity is 23.37% and 194% above the Drug Manufacturers industry median of 7.95. Hangzhou TianMuShan Pharmaceutical Enterprise Co's overall GF Score™ is 51/100 with 10 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 Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671), the current Return-on-Tangible-Equity is 23.37% 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 Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671) Overvalued in 2026?
Based on GuruFocus' analysis, Hangzhou TianMuShan Pharmaceutical Enterprise Co stock appears to be overvalued.
The current stock price of ¥20.13 is trading 34.1% above its estimated GF Value™ of ¥15.01.
GuruFocus considers Hangzhou TianMuShan Pharmaceutical Enterprise Co to be Significantly Overvalued.
Key valuation signals for SHSE:600671:
Return-on-Tangible-Equity: 23.37%
GF Value™: ¥15.01 vs. price of ¥20.13 (34.1% above fair value)
Industry Position: 194% above the Drug Manufacturers median (#130 of 899)
No single metric tells the full story. See the SHSE:600671 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hangzhou TianMuShan Pharmaceutical Enterprise Co Business Description
Hangzhou TianMuShan Pharmaceutical Enterprise Co Ltd is engaged in producing proprietary Chinese medicines, biopharmaceuticals, healthy foods, medical equipment, and other medicines in China.
51GF Score
Get the complete analysis for SHSE:600671
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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