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SHSE:600742's Return-on-Tangible-Equity is ranked worse than 58.35% of 1282
companies
in the Vehicles & Parts industry
Industry Median: 7.59
vs SHSE:600742: 5.48
Changchun FAWAY Group Automobile Components Co (SHSE:600742) 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.
Changchun FAWAY Group Automobile Components Co Return-on-Tangible-Equity Related Terms
Changchun FAWAY Group Automobile Components 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.
Changchun FAWAY Group Automobile Components Co Return-on-Tangible-Equity Chart
Changchun FAWAY Group Automobile Components Co Annual Data
SHSE:600742 vs ORLY, AZO: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, Changchun FAWAY Group Automobile Components 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.
Changchun FAWAY Group Automobile Components Co Return-on-Tangible-Equity vs Vehicles & Parts 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 4.05% mean?
Changchun FAWAY Group Automobile Components Co (SHSE:600742) has a Return-on-Tangible-Equity of 4.05% 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 Changchun FAWAY Group Automobile Components Co and its competitors. This is 62% below median its historical median of 10.70. Over the past decade, Changchun FAWAY Group Automobile Components Co's Return-on-Tangible-Equity has ranged from 5.48 to 11.27. According to the industry distribution chart, Changchun FAWAY Group Automobile Components Co ranks #748 out of 1282 companies in the Vehicles & Parts industry, placing it in the top 58.3%.
Is Changchun FAWAY Group Automobile Components Co's Return-on-Tangible-Equity too high?
Changchun FAWAY Group Automobile Components Co's current Return-on-Tangible-Equity of 4.05% is 62% below median its 10-year median of 10.70. Over the past 10 years, this metric has ranged from a low of 5.48 to a high of 11.27. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.59. Changchun FAWAY Group Automobile Components Co's value of 4.05% is 46.6% below this industry median. Based on the distribution chart, Changchun FAWAY Group Automobile Components Co ranks #748 out of 1282 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Changchun FAWAY Group Automobile Components Co has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Changchun FAWAY Group Automobile Components Co's Return-on-Tangible-Equity compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Changchun FAWAY Group Automobile Components Co ranks #748 out of 1282 companies for Return-on-Tangible-Equity. This places Changchun FAWAY Group Automobile Components Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.59. Changchun FAWAY Group Automobile Components Co's value of 4.05% is 46.6% below this benchmark. Historically, Changchun FAWAY Group Automobile Components Co's own Return-on-Tangible-Equity has ranged from 5.48 to 11.27 over the past decade. While the company's 10-year median is 10.70 vs. the industry median of 7.59, Changchun FAWAY Group Automobile Components Co has consistently been below 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 7.59, based on 1,282 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. Changchun FAWAY Group Automobile Components Co's current Return-on-Tangible-Equity of 4.05% is 46.6% below 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 Changchun FAWAY Group Automobile Components Co and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Changchun FAWAY Group Automobile Components Co's current Return-on-Tangible-Equity is 4.05%, which is 62% below median its own 10-year median of 10.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Changchun FAWAY Group Automobile Components Co stock overvalued right now?
Based on GuruFocus' analysis, Changchun FAWAY Group Automobile Components Co (SHSE:600742) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥8.71, compared to a current price of ¥7.57 — trading 13.1% below its estimated fair value. The current Return-on-Tangible-Equity is 4.05%, which is 62% below median its 10-year median of 10.70 and 46.6% below the Vehicles & Parts industry median of 7.59. Changchun FAWAY Group Automobile Components Co's overall GF Score™ is 65/100 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 Changchun FAWAY Group Automobile Components Co (SHSE:600742), the current Return-on-Tangible-Equity is 4.05% 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 Changchun FAWAY Group Automobile Components Co (SHSE:600742) Overvalued in 2026?
Based on GuruFocus' analysis, Changchun FAWAY Group Automobile Components Co stock appears to be undervalued.
The current stock price of ¥7.57 is trading 13.1% below its estimated GF Value™ of ¥8.71.
GuruFocus considers Changchun FAWAY Group Automobile Components Co to be Modestly Undervalued.
Key valuation signals for SHSE:600742:
Return-on-Tangible-Equity: 4.05% (62% below median its 10-year median of 10.70)
GF Value™: ¥8.71 vs. price of ¥7.57 (13.1% below fair value)
Industry Position: 46.6% below the Vehicles & Parts median (#748 of 1282)
No single metric tells the full story. See the SHSE:600742 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Changchun FAWAY Group Automobile Components Co Ltd is a China-based company principally engaged in the Automobile modification, automobile parts design, production, sales, warehousing, labor services, equipment and site leasing, etc.
65GF Score
Get the complete analysis for SHSE:600742
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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