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Avic Heavy Machinery CoSHSE:600765 -0.23%65 Return-on-Tangible-Equity is 4.66% as of Mar. 2026, which is 36% below its 10-year median of 7.28. GuruFocus rates SHSE:600765 with a GF Score™ of 65/100 and a GF Value™ of ¥17.13 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 2,970 Industrial Products companies, Avic Heavy Machinery Co ranks worse than 60.3% 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. Avic Heavy Machinery Co's annualized net income for the quarter that ended in Mar. 2026 was ¥632 Mil. Avic Heavy Machinery Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥13,560 Mil. Therefore, Avic Heavy Machinery Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.66%.
The historical rank and industry rank for Avic Heavy Machinery Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:600765'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.2 Med: 7.28 Max: 12.76
Current: 4.2
During the past 13 years, Avic Heavy Machinery Co's highest Return-on-Tangible-Equity was 12.76%. The lowest was 4.20%. And the median was 7.28%.
SHSE:600765's Return-on-Tangible-Equity is ranked worse than 60.3% of 2970
companies
in the Industrial Products industry
Industry Median: 6.725
vs SHSE:600765: 4.20
Avic Heavy Machinery Co (SHSE:600765) 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.
Avic Heavy Machinery Co Return-on-Tangible-Equity Related Terms
Avic Heavy Machinery Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Avic Heavy Machinery 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.
Avic Heavy Machinery Co Return-on-Tangible-Equity Chart
SHSE:600765 vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Avic Heavy Machinery 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.
Avic Heavy Machinery Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Avic Heavy Machinery Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Avic Heavy Machinery 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 4.66% mean?
Avic Heavy Machinery Co (SHSE:600765) has a Return-on-Tangible-Equity of 4.66% 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 Avic Heavy Machinery Co and its competitors. This is 36% below median its historical median of 7.28. Over the past decade, Avic Heavy Machinery Co's Return-on-Tangible-Equity has ranged from 4.20 to 12.76. According to the industry distribution chart, Avic Heavy Machinery Co ranks #1791 out of 2970 companies in the Industrial Products industry, placing it in the top 60.3%.
Is Avic Heavy Machinery Co's Return-on-Tangible-Equity too high?
Avic Heavy Machinery Co's current Return-on-Tangible-Equity of 4.66% is 36% below median its 10-year median of 7.28. Over the past 10 years, this metric has ranged from a low of 4.20 to a high of 12.76. The Industrial Products industry median Return-on-Tangible-Equity is 6.73. Avic Heavy Machinery Co's value of 4.66% is 30.7% below this industry median. Based on the distribution chart, Avic Heavy Machinery Co ranks #1791 out of 2970 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Avic Heavy Machinery 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 Avic Heavy Machinery Co's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Avic Heavy Machinery Co ranks #1791 out of 2970 companies for Return-on-Tangible-Equity. This places Avic Heavy Machinery Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.73. Avic Heavy Machinery Co's value of 4.66% is 30.7% below this benchmark. Historically, Avic Heavy Machinery Co's own Return-on-Tangible-Equity has ranged from 4.20 to 12.76 over the past decade. While the company's 10-year median is 7.28 vs. the industry median of 6.73, Avic Heavy Machinery 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.73, based on 2,970 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. Avic Heavy Machinery Co's current Return-on-Tangible-Equity of 4.66% is 30.7% 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 Avic Heavy Machinery Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avic Heavy Machinery Co's current Return-on-Tangible-Equity is 4.66%, which is 36% below median its own 10-year median of 7.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avic Heavy Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Avic Heavy Machinery Co (SHSE:600765) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥17.13, compared to a current price of ¥13.04 — trading 23.9% below its estimated fair value. The current Return-on-Tangible-Equity is 4.66%, which is 36% below median its 10-year median of 7.28 and 30.7% below the Industrial Products industry median of 6.73. Avic Heavy Machinery Co's overall GF Score™ is 65/100 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 Avic Heavy Machinery Co (SHSE:600765), the current Return-on-Tangible-Equity is 4.66% 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 Avic Heavy Machinery Co (SHSE:600765) Overvalued in 2026?
Based on GuruFocus' analysis, Avic Heavy Machinery Co stock appears to be undervalued.
The current stock price of ¥13.04 is trading 23.9% below its estimated GF Value™ of ¥17.13.
GuruFocus considers Avic Heavy Machinery Co to be Modestly Undervalued.
Key valuation signals for SHSE:600765:
Return-on-Tangible-Equity: 4.66% (36% below median its 10-year median of 7.28)
GF Value™: ¥17.13 vs. price of ¥13.04 (23.9% below fair value)
Industry Position: 30.7% below the Industrial Products median (#1791 of 2970)
No single metric tells the full story. See the SHSE:600765 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avic Heavy Machinery Co Ltd is a China-based company engaged in the development, production, and sale of both military and civilian-used high-end equipment. It manufactures hydraulic parts, hydraulic systems, forging products, heat exchangers and gas turbines in China. The company operates in the business areas of Forging business, Hydraulic business, and New energy business. In the Forging business, the company mainly produces die forgings, free forgings, isothermal forgings and rings of different materials. In Hydraulic business, the main products are various types of heat exchangers, high-speed rotating machinery (turbine, pumps, fans), oil tanks, cooling devices, high-temperature insulation components.
65GF Score
Get the complete analysis for SHSE:600765
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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