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Xiamen King Long Motor Group CoSHSE:600686 -3.90%64 Return-on-Tangible-Equity is 20.86% as of Mar. 2026, which is 464% above its 10-year median of 3.70. GuruFocus rates SHSE:600686 with a GF Score™ of 64/100 and a GF Value™ of ¥13.63 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,283 Vehicles & Parts companies, Xiamen King Long Motor Group Co ranks better than 85.04% on this metric.
The historical rank and industry rank for Xiamen King Long Motor Group Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:600686'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -21.32 Med: 3.7 Max: 21.53
Current: 21.53
During the past 13 years, Xiamen King Long Motor Group Co's highest Return-on-Tangible-Equity was 21.53%. The lowest was -21.32%. And the median was 3.70%.
SHSE:600686's Return-on-Tangible-Equity is ranked better than 85.04% of 1283
companies
in the Vehicles & Parts industry
Industry Median: 7.47
vs SHSE:600686: 21.53
Xiamen King Long Motor Group Co (SHSE:600686) 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.
Xiamen King Long Motor Group Co Return-on-Tangible-Equity Related Terms
Xiamen King Long Motor Group 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.
Xiamen King Long Motor Group Co Return-on-Tangible-Equity Chart
SHSE:600686 vs TSLA, GM, F: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, Xiamen King Long Motor 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.
Xiamen King Long Motor Group Co Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Xiamen King Long Motor Group Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Xiamen King Long Motor 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 20.86% mean?
Xiamen King Long Motor Group Co (SHSE:600686) has a Return-on-Tangible-Equity of 20.86% 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 Xiamen King Long Motor Group Co and its competitors. This is 464% above median its historical median of 3.70. According to the industry distribution chart, Xiamen King Long Motor Group Co ranks #192 out of 1283 companies in the Vehicles & Parts industry, placing it in the top 15%.
Is Xiamen King Long Motor Group Co's Return-on-Tangible-Equity too high?
Xiamen King Long Motor Group Co's current Return-on-Tangible-Equity of 20.86% is 464% above median its 10-year median of 3.70. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.47. Xiamen King Long Motor Group Co's value of 20.86% is 179.3% above this industry median. Based on the distribution chart, Xiamen King Long Motor Group Co ranks #192 out of 1283 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Xiamen King Long Motor Group Co has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Xiamen King Long Motor Group Co's Return-on-Tangible-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Xiamen King Long Motor Group Co ranks #192 out of 1283 companies for Return-on-Tangible-Equity. This places Xiamen King Long Motor Group Co in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.47. Xiamen King Long Motor Group Co's value of 20.86% is 179.3% above this benchmark. While the company's 10-year median is 3.70 vs. the industry median of 7.47, Xiamen King Long Motor Group 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.47, based on 1,283 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. Xiamen King Long Motor Group Co's current Return-on-Tangible-Equity of 20.86% is 179.3% 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 Xiamen King Long Motor Group Co and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiamen King Long Motor Group Co's current Return-on-Tangible-Equity is 20.86%, which is 464% above median its own 10-year median of 3.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen King Long Motor Group Co stock overvalued right now?
Based on GuruFocus' analysis, Xiamen King Long Motor Group Co (SHSE:600686) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥13.63, compared to a current price of ¥10.36 — trading 24% below its estimated fair value. The current Return-on-Tangible-Equity is 20.86%, which is 464% above median its 10-year median of 3.70 and 179.3% above the Vehicles & Parts industry median of 7.47. Xiamen King Long Motor Group Co's overall GF Score™ is 64/100 with 3 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 Xiamen King Long Motor Group Co (SHSE:600686), the current Return-on-Tangible-Equity is 20.86% 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 Xiamen King Long Motor Group Co (SHSE:600686) Overvalued in 2026?
Based on GuruFocus' analysis, Xiamen King Long Motor Group Co stock appears to be undervalued.
The current stock price of ¥10.36 is trading 24% below its estimated GF Value™ of ¥13.63.
GuruFocus considers Xiamen King Long Motor Group Co to be Modestly Undervalued.
Key valuation signals for SHSE:600686:
Return-on-Tangible-Equity: 20.86% (464% above median its 10-year median of 3.70)
GF Value™: ¥13.63 vs. price of ¥10.36 (24% below fair value)
Industry Position: 179.3% above the Vehicles & Parts median (#192 of 1283)
No single metric tells the full story. See the SHSE:600686 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiamen King Long Motor Group Co Business Description
Xiamen King Long Motor Group Co Ltd is a China-based global bus manufacturing group. The Company's products mainly include large-size, medium-size and light passenger buses, which are widely used in passenger, tourism, public transportation, group and special vehicles markets.
64GF Score
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