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SHSE:603275's Return-on-Tangible-Equity is ranked worse than 51.66% of 2975
companies
in the Industrial Products industry
Industry Median: 6.86
vs SHSE:603275: 6.35
Shanghai Zhongchen Electronic Technology Co (SHSE:603275) 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 Zhongchen Electronic Technology Co Return-on-Tangible-Equity Related Terms
Shanghai Zhongchen Electronic Technology 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 Zhongchen Electronic Technology Co Return-on-Tangible-Equity Chart
Shanghai Zhongchen Electronic Technology Co Annual Data
SHSE:603275 vs VRT, BE: Return-on-Tangible-Equity Comparison
For the Electrical Equipment & Parts subindustry, Shanghai Zhongchen Electronic Technology 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 Zhongchen Electronic Technology Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shanghai Zhongchen Electronic Technology Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Shanghai Zhongchen Electronic Technology 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 6.21% mean?
Shanghai Zhongchen Electronic Technology Co (SHSE:603275) has a Return-on-Tangible-Equity of 6.21% 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 Zhongchen Electronic Technology Co and its competitors. This is 75% below median its historical median of 25.16. Over the past decade, Shanghai Zhongchen Electronic Technology Co's Return-on-Tangible-Equity has ranged from 6.35 to 62.41. According to the industry distribution chart, Shanghai Zhongchen Electronic Technology Co ranks #1537 out of 2975 companies in the Industrial Products industry, placing it in the top 51.7%.
Is Shanghai Zhongchen Electronic Technology Co's Return-on-Tangible-Equity too high?
Shanghai Zhongchen Electronic Technology Co's current Return-on-Tangible-Equity of 6.21% is 75% below median its 10-year median of 25.16. Over the past 10 years, this metric has ranged from a low of 6.35 to a high of 62.41. The Industrial Products industry median Return-on-Tangible-Equity is 6.86. Shanghai Zhongchen Electronic Technology Co's value of 6.21% is 9.5% below this industry median. Based on the distribution chart, Shanghai Zhongchen Electronic Technology Co ranks #1537 out of 2975 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Shanghai Zhongchen Electronic Technology Co has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Zhongchen Electronic Technology Co's Return-on-Tangible-Equity compare to VRT and BE?
According to the Industrial Products industry distribution chart, Shanghai Zhongchen Electronic Technology Co ranks #1537 out of 2975 companies for Return-on-Tangible-Equity. This places Shanghai Zhongchen Electronic Technology Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.86. Shanghai Zhongchen Electronic Technology Co's value of 6.21% is 9.5% below this benchmark. Historically, Shanghai Zhongchen Electronic Technology Co's own Return-on-Tangible-Equity has ranged from 6.35 to 62.41 over the past decade. While the company's 10-year median is 25.16 vs. the industry median of 6.86, Shanghai Zhongchen Electronic Technology 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 6.86, based on 2,975 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 Zhongchen Electronic Technology Co's current Return-on-Tangible-Equity of 6.21% is 9.5% 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 Zhongchen Electronic Technology Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Zhongchen Electronic Technology Co's current Return-on-Tangible-Equity is 6.21%, which is 75% below median its own 10-year median of 25.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Zhongchen Electronic Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Zhongchen Electronic Technology Co (SHSE:603275) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥46.23, compared to a current price of ¥36.60 — trading 20.8% below its estimated fair value. The current Return-on-Tangible-Equity is 6.21%, which is 75% below median its 10-year median of 25.16 and 9.5% below the Industrial Products industry median of 6.86. Shanghai Zhongchen Electronic Technology Co's overall GF Score™ is 84/100 with 3 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 Shanghai Zhongchen Electronic Technology Co (SHSE:603275), the current Return-on-Tangible-Equity is 6.21% 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 Zhongchen Electronic Technology Co (SHSE:603275) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Zhongchen Electronic Technology Co stock appears to be undervalued.
The current stock price of ¥36.60 is trading 20.8% below its estimated GF Value™ of ¥46.23.
GuruFocus considers Shanghai Zhongchen Electronic Technology Co to be Modestly Undervalued.
Key valuation signals for SHSE:603275:
Return-on-Tangible-Equity: 6.21% (75% below median its 10-year median of 25.16)
GF Value™: ¥46.23 vs. price of ¥36.60 (20.8% below fair value)
Industry Position: 9.5% below the Industrial Products median (#1537 of 2975)
No single metric tells the full story. See the SHSE:603275 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Zhongchen Electronic Technology Co Ltd is a high-tech enterprise focusing on the research and development, production, sales and service of electric transmission and industrial automation products. The company's main products are variable frequency drives, servo drive systems and electric new energy vehicle drives. The company has a wide range of products, among which medium and low-voltage variable frequency drives are divided into two categories: general-purpose products and industry-specific products.
84GF Score
Get the complete analysis for SHSE:603275
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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