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Shanghai Material Trading CoSHSE:600822 -2.75%47 Return-on-Tangible-Equity is 1.92% as of Mar. 2026, which is 73% below its 10-year median of 7.18. GuruFocus rates SHSE:600822 with a GF Score™ of 47/100 and a GF Value™ of ¥5.83 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 550 Conglomerates companies, Shanghai Material Trading Co ranks worse than 70.36% 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. Shanghai Material Trading Co's annualized net income for the quarter that ended in Mar. 2026 was ¥24 Mil. Shanghai Material Trading Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥1,225 Mil. Therefore, Shanghai Material Trading Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 1.92%.
The historical rank and industry rank for Shanghai Material Trading Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:600822'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.33 Med: 7.18 Max: 17.35
Current: 2.33
During the past 13 years, Shanghai Material Trading Co's highest Return-on-Tangible-Equity was 17.35%. The lowest was 2.33%. And the median was 7.18%.
SHSE:600822's Return-on-Tangible-Equity is ranked worse than 70.36% of 550
companies
in the Conglomerates industry
Industry Median: 7.465
vs SHSE:600822: 2.33
Shanghai Material Trading Co (SHSE:600822) 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.
Shanghai Material Trading Co Return-on-Tangible-Equity Related Terms
Shanghai Material Trading 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.
Shanghai Material Trading Co Return-on-Tangible-Equity Chart
SHSE:600822 vs HON, MMM: Return-on-Tangible-Equity Comparison
For the Conglomerates subindustry, Shanghai Material Trading 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.
Shanghai Material Trading Co Return-on-Tangible-Equity vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Shanghai Material Trading Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Shanghai Material Trading 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 1.92% mean?
Shanghai Material Trading Co (SHSE:600822) has a Return-on-Tangible-Equity of 1.92% 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 Shanghai Material Trading Co and its competitors. This is 73% below median its historical median of 7.18. Over the past decade, Shanghai Material Trading Co's Return-on-Tangible-Equity has ranged from 2.33 to 17.35. According to the industry distribution chart, Shanghai Material Trading Co ranks #387 out of 550 companies in the Conglomerates industry, placing it in the top 70.4%.
Is Shanghai Material Trading Co's Return-on-Tangible-Equity too high?
Shanghai Material Trading Co's current Return-on-Tangible-Equity of 1.92% is 73% below median its 10-year median of 7.18. Over the past 10 years, this metric has ranged from a low of 2.33 to a high of 17.35. The Conglomerates industry median Return-on-Tangible-Equity is 7.47. Shanghai Material Trading Co's value of 1.92% is 74.3% below this industry median. Based on the distribution chart, Shanghai Material Trading Co ranks #387 out of 550 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Shanghai Material Trading Co has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Material Trading Co's Return-on-Tangible-Equity compare to HON and MMM?
According to the Conglomerates industry distribution chart, Shanghai Material Trading Co ranks #387 out of 550 companies for Return-on-Tangible-Equity. This places Shanghai Material Trading Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.47. Shanghai Material Trading Co's value of 1.92% is 74.3% below this benchmark. Historically, Shanghai Material Trading Co's own Return-on-Tangible-Equity has ranged from 2.33 to 17.35 over the past decade. While the company's 10-year median is 7.18 vs. the industry median of 7.47, Shanghai Material Trading 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 Conglomerates company?
The median Return-on-Tangible-Equity among Conglomerates companies is 7.47, based on 550 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. Shanghai Material Trading Co's current Return-on-Tangible-Equity of 1.92% is 74.3% 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 Shanghai Material Trading Co and its competitors. For the Conglomerates 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. Shanghai Material Trading Co's current Return-on-Tangible-Equity is 1.92%, which is 73% below median its own 10-year median of 7.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Material Trading Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Material Trading Co (SHSE:600822) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥5.83, compared to a current price of ¥7.78 — trading 33.4% above its estimated fair value. The current Return-on-Tangible-Equity is 1.92%, which is 73% below median its 10-year median of 7.18 and 74.3% below the Conglomerates industry median of 7.47. Shanghai Material Trading Co's overall GF Score™ is 47/100 with 1 warning sign 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 Shanghai Material Trading Co (SHSE:600822), the current Return-on-Tangible-Equity is 1.92% 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 Shanghai Material Trading Co (SHSE:600822) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Material Trading Co stock appears to be overvalued.
The current stock price of ¥7.78 is trading 33.4% above its estimated GF Value™ of ¥5.83.
GuruFocus considers Shanghai Material Trading Co to be Significantly Overvalued.
Key valuation signals for SHSE:600822:
Return-on-Tangible-Equity: 1.92% (73% below median its 10-year median of 7.18)
GF Value™: ¥5.83 vs. price of ¥7.78 (33.4% above fair value)
Industry Position: 74.3% below the Conglomerates median (#387 of 550)
No single metric tells the full story. See the SHSE:600822 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Material Trading Co Ltd is principally engaged in the trading of metal, oil products and automobiles. The company operates its businesses in domestic and overseas markets. Its scopr of business include metal materials, mineral products, light chemical raw materials, building materials, wood, automobiles and accessories, mechanical and electrical equipment, fuel, hardware and electricity, textile Import and export trade business; warehousing, information consulting and technical services.
47GF Score
Get the complete analysis for SHSE:600822
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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