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MeiHua Holdings Group CoSHSE:600873 -2.16%77 Return-on-Tangible-Equity is 14.96% as of Jun. 2026, which is 15% below its 10-year median of 17.64. GuruFocus rates SHSE:600873 with a GF Score™ of 77/100 and a GF Value™ of ¥10.77 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,576 Chemicals companies, MeiHua Holdings Group Co ranks better than 79.19% 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. MeiHua Holdings Group Co's annualized net income for the quarter that ended in Jun. 2026 was ¥2,176 Mil. MeiHua Holdings Group Co's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ¥14,539 Mil. Therefore, MeiHua Holdings Group Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 14.96%.
The historical rank and industry rank for MeiHua Holdings Group Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:600873'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.61 Med: 17.64 Max: 40.21
Current: 15.09
During the past 13 years, MeiHua Holdings Group Co's highest Return-on-Tangible-Equity was 40.21%. The lowest was 12.61%. And the median was 17.64%.
SHSE:600873's Return-on-Tangible-Equity is ranked better than 79.19% of 1576
companies
in the Chemicals industry
Industry Median: 6.68
vs SHSE:600873: 15.09
MeiHua Holdings Group Co (SHSE:600873) 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.
MeiHua Holdings Group Co Return-on-Tangible-Equity Related Terms
MeiHua Holdings Group Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for MeiHua Holdings Group 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.
MeiHua Holdings Group Co Return-on-Tangible-Equity Chart
SHSE:600873 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, MeiHua Holdings 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.
MeiHua Holdings Group Co Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, MeiHua Holdings Group Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where MeiHua Holdings 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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 14.96% mean?
MeiHua Holdings Group Co (SHSE:600873) has a Return-on-Tangible-Equity of 14.96% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on MeiHua Holdings Group Co and its competitors. This is 15% below median its historical median of 17.64. Over the past decade, MeiHua Holdings Group Co's Return-on-Tangible-Equity has ranged from 12.61 to 40.21. According to the industry distribution chart, MeiHua Holdings Group Co ranks #328 out of 1576 companies in the Chemicals industry, placing it in the top 20.8%.
Is MeiHua Holdings Group Co's Return-on-Tangible-Equity too high?
MeiHua Holdings Group Co's current Return-on-Tangible-Equity of 14.96% is 15% below median its 10-year median of 17.64. Over the past 10 years, this metric has ranged from a low of 12.61 to a high of 40.21. The Chemicals industry median Return-on-Tangible-Equity is 6.68. MeiHua Holdings Group Co's value of 14.96% is 124% above this industry median. Based on the distribution chart, MeiHua Holdings Group Co ranks #328 out of 1576 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, MeiHua Holdings Group Co has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MeiHua Holdings Group Co's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, MeiHua Holdings Group Co ranks #328 out of 1576 companies for Return-on-Tangible-Equity. This places MeiHua Holdings Group Co in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.68. MeiHua Holdings Group Co's value of 14.96% is 124% above this benchmark. Historically, MeiHua Holdings Group Co's own Return-on-Tangible-Equity has ranged from 12.61 to 40.21 over the past decade. While the company's 10-year median is 17.64 vs. the industry median of 6.68, MeiHua Holdings 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 6.68, based on 1,576 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. MeiHua Holdings Group Co's current Return-on-Tangible-Equity of 14.96% is 124% 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 MeiHua Holdings Group Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 6.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MeiHua Holdings Group Co's current Return-on-Tangible-Equity is 14.96%, which is 15% below median its own 10-year median of 17.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MeiHua Holdings Group Co stock overvalued right now?
Based on GuruFocus' analysis, MeiHua Holdings Group Co (SHSE:600873) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥10.77, compared to a current price of ¥7.70 — trading 28.5% below its estimated fair value. The current Return-on-Tangible-Equity is 14.96%, which is 15% below median its 10-year median of 17.64 and 124% above the Chemicals industry median of 6.68. MeiHua Holdings Group Co's overall GF Score™ is 77/100 with 2 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 MeiHua Holdings Group Co (SHSE:600873), the current Return-on-Tangible-Equity is 14.96% as of Jun. 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 MeiHua Holdings Group Co (SHSE:600873) Overvalued in 2026?
Based on GuruFocus' analysis, MeiHua Holdings Group Co stock appears to be undervalued.
The current stock price of ¥7.70 is trading 28.5% below its estimated GF Value™ of ¥10.77.
GuruFocus considers MeiHua Holdings Group Co to be Modestly Undervalued.
Key valuation signals for SHSE:600873:
Return-on-Tangible-Equity: 14.96% (15% below median its 10-year median of 17.64)
GF Value™: ¥10.77 vs. price of ¥7.70 (28.5% below fair value)
Industry Position: 124% above the Chemicals median (#328 of 1576)
No single metric tells the full story. See the SHSE:600873 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MeiHua Holdings Group Co Ltd is a China-based supplier of amino acid nutrition and health solution. Its products include Food additives, condiment, colloid, Amino acids, capsule, fertilizer, bulk by-products (such as corn germ and protein powder) and among others. The company mainly operates its businesses in the domestic and overseas markets.
77GF Score
Get the complete analysis for SHSE:600873
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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