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China Tourism Group Duty FreeSHSE:601888 -1.66%81 Return-on-Tangible-Equity is 17.64% as of Mar. 2026, which is 6% below its 10-year median of 18.76. GuruFocus rates SHSE:601888 with a GF Score™ of 81/100 and a GF Value™ of ¥68.42 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,066 Retail - Cyclical companies, China Tourism Group Duty Free ranks worse than 53.19% 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. China Tourism Group Duty Free's annualized net income for the quarter that ended in Mar. 2026 was ¥9,393 Mil. China Tourism Group Duty Free's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥53,263 Mil. Therefore, China Tourism Group Duty Free's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.64%.
The historical rank and industry rank for China Tourism Group Duty Free's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:601888'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.81 Med: 18.76 Max: 42.45
Current: 7.51
During the past 13 years, China Tourism Group Duty Free's highest Return-on-Tangible-Equity was 42.45%. The lowest was 6.81%. And the median was 18.76%.
SHSE:601888's Return-on-Tangible-Equity is ranked worse than 53.19% of 1066
companies
in the Retail - Cyclical industry
Industry Median: 8.455
vs SHSE:601888: 7.51
China Tourism Group Duty Free (SHSE:601888) 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.
China Tourism Group Duty Free Return-on-Tangible-Equity Related Terms
China Tourism Group Duty Free 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.
China Tourism Group Duty Free Return-on-Tangible-Equity Chart
SHSE:601888 vs CASY, WSM, ULTA: Return-on-Tangible-Equity Comparison
For the Specialty Retail subindustry, China Tourism Group Duty Free'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.
China Tourism Group Duty Free Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, China Tourism Group Duty Free's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where China Tourism Group Duty Free'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 17.64% mean?
China Tourism Group Duty Free (SHSE:601888) has a Return-on-Tangible-Equity of 17.64% 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 China Tourism Group Duty Free and its competitors. This is near median its historical median of 18.76. Over the past decade, China Tourism Group Duty Free's Return-on-Tangible-Equity has ranged from 6.81 to 42.45. According to the industry distribution chart, China Tourism Group Duty Free ranks #567 out of 1066 companies in the Retail - Cyclical industry, placing it in the top 53.2%.
Is China Tourism Group Duty Free's Return-on-Tangible-Equity too high?
China Tourism Group Duty Free's current Return-on-Tangible-Equity of 17.64% is near median its 10-year median of 18.76. Over the past 10 years, this metric has ranged from a low of 6.81 to a high of 42.45. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.46. China Tourism Group Duty Free's value of 17.64% is 108.6% above this industry median. Based on the distribution chart, China Tourism Group Duty Free ranks #567 out of 1066 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, China Tourism Group Duty Free has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Tourism Group Duty Free's Return-on-Tangible-Equity compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, China Tourism Group Duty Free ranks #567 out of 1066 companies for Return-on-Tangible-Equity. This places China Tourism Group Duty Free in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.46. China Tourism Group Duty Free's value of 17.64% is 108.6% above this benchmark. Historically, China Tourism Group Duty Free's own Return-on-Tangible-Equity has ranged from 6.81 to 42.45 over the past decade. While the company's 10-year median is 18.76 vs. the industry median of 8.46, China Tourism Group Duty Free 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.46, based on 1,066 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. China Tourism Group Duty Free's current Return-on-Tangible-Equity of 17.64% is 108.6% 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 China Tourism Group Duty Free and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Tourism Group Duty Free's current Return-on-Tangible-Equity is 17.64%, which is near median its own 10-year median of 18.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Tourism Group Duty Free stock overvalued right now?
Based on GuruFocus' analysis, China Tourism Group Duty Free (SHSE:601888) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥68.42, compared to a current price of ¥54.06 — trading 21% below its estimated fair value. The current Return-on-Tangible-Equity is 17.64%, which is near median its 10-year median of 18.76 and 108.6% above the Retail - Cyclical industry median of 8.46. China Tourism Group Duty Free's overall GF Score™ is 81/100 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 China Tourism Group Duty Free (SHSE:601888), the current Return-on-Tangible-Equity is 17.64% 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 China Tourism Group Duty Free (SHSE:601888) Overvalued in 2026?
Based on GuruFocus' analysis, China Tourism Group Duty Free stock appears to be undervalued.
The current stock price of ¥54.06 is trading 21% below its estimated GF Value™ of ¥68.42.
GuruFocus considers China Tourism Group Duty Free to be Modestly Undervalued.
Key valuation signals for SHSE:601888:
Return-on-Tangible-Equity: 17.64% (near median its 10-year median of 18.76)
GF Value™: ¥68.42 vs. price of ¥54.06 (21% below fair value)
Industry Position: 108.6% above the Retail - Cyclical median (#567 of 1066)
No single metric tells the full story. See the SHSE:601888 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in 1984, China Tourism Group Duty Free is China's largest and the world's second-largest travel retailer in 2025 with revenue of CNY 54 billion. The company primarily operates duty-free stores at airports, border crossings, offshore, downtown, and on flights, cruises and ships, with about 200 stores spanning over 33 provinces in China, as well as overseas. The company also operates a duty-paid business. Its 2025 revenue mix was 73% duty-free sales and 27% duty-paid sales and others. CTG Duty Free is 50% owned by China Tourism Group, a state-owned enterprise that falls directly under the State-owned Assets Supervision and Administration Commission of the State Council.
81GF Score
Get the complete analysis for SHSE:601888
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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