ZhongTongGuoMai Communication Co (SHSE:603559) Return-on-Tangible-Equity: 3.54% (As of Mar. 2026)

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SHSE:603559 ZhongTongGuoMai Communication Co Ltd SHSE:603559
49 GF Score
Price ¥9.07
GF Value ¥4.06
Valuation Significantly Overvalued
! 1 Warning Sign
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What is ZhongTongGuoMai Communication Co Return-on-Tangible-Equity?

ZhongTongGuoMai Communication Co SHSE:603559 -4.83% 49 Return-on-Tangible-Equity is 3.54% as of Mar. 2026. GuruFocus rates SHSE:603559 with a GF Score™ of 49/100 and a GF Value™ of ¥4.06 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,485 Software companies, ZhongTongGuoMai Communication Co ranks worse than 79.6% 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. ZhongTongGuoMai Communication Co's annualized net income for the quarter that ended in Mar. 2026 was ¥27.0 Mil. ZhongTongGuoMai Communication Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥762.1 Mil. Therefore, ZhongTongGuoMai Communication Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 3.54%.

The historical rank and industry rank for ZhongTongGuoMai Communication Co's Return-on-Tangible-Equity or its related term are showing as below:

SHSE:603559' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -171.49   Med: -9.63   Max: 11.03
Current: -16.89

During the past 13 years, ZhongTongGuoMai Communication Co's highest Return-on-Tangible-Equity was 11.03%. The lowest was -171.49%. And the median was -9.63%.

SHSE:603559's Return-on-Tangible-Equity is ranked worse than
79.6% of 2485 companies
in the Software industry
Industry Median: 9.79 vs SHSE:603559: -16.89

ZhongTongGuoMai Communication Co  (SHSE:603559) 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.


ZhongTongGuoMai Communication Co Return-on-Tangible-Equity Related Terms


ZhongTongGuoMai Communication Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for ZhongTongGuoMai Communication 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.

ZhongTongGuoMai Communication Co Return-on-Tangible-Equity Chart

ZhongTongGuoMai Communication Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only -75.63 -45.87 -171.49 -57.76 -18.64

ZhongTongGuoMai Communication Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.27 -14.23 -9.42 -46.61 3.54

SHSE:603559 vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison

For the Information Technology Services subindustry, ZhongTongGuoMai Communication 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.


ZhongTongGuoMai Communication Co Return-on-Tangible-Equity vs Software Industry

For the Software industry and Technology sector, ZhongTongGuoMai Communication Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where ZhongTongGuoMai Communication Co's Return-on-Tangible-Equity falls into.


SHSE:603559
49GF Score
ZhongTongGuoMai Communication Co Ltd SHSE:603559
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

ZhongTongGuoMai Communication Co Return-on-Tangible-Equity Calculation

ZhongTongGuoMai Communication Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=-163.505/( (996.41+758.404 )/ 2 )
=-163.505/877.407
=-18.64 %

ZhongTongGuoMai Communication Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=26.956/( (758.404+765.82)/ 2 )
=26.956/762.112
=3.54 %

* 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 3.54% mean?
ZhongTongGuoMai Communication Co (SHSE:603559) has a Return-on-Tangible-Equity of 3.54% 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 ZhongTongGuoMai Communication Co and its competitors. According to the industry distribution chart, ZhongTongGuoMai Communication Co ranks #1978 out of 2485 companies in the Software industry, placing it in the top 79.6%.
Is ZhongTongGuoMai Communication Co's Return-on-Tangible-Equity too high?
ZhongTongGuoMai Communication Co's current Return-on-Tangible-Equity is 3.54%. The Software industry median Return-on-Tangible-Equity is 9.79. ZhongTongGuoMai Communication Co's value of 3.54% is 63.8% below this industry median. Based on the distribution chart, ZhongTongGuoMai Communication Co ranks #1978 out of 2485 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, ZhongTongGuoMai Communication Co has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ZhongTongGuoMai Communication Co's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, ZhongTongGuoMai Communication Co ranks #1978 out of 2485 companies for Return-on-Tangible-Equity. This places ZhongTongGuoMai Communication Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 9.79. ZhongTongGuoMai Communication Co's value of 3.54% is 63.8% below this benchmark. 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 9.79, based on 2,485 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. ZhongTongGuoMai Communication Co's current Return-on-Tangible-Equity of 3.54% is 63.8% 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 ZhongTongGuoMai Communication Co and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZhongTongGuoMai Communication Co's current Return-on-Tangible-Equity is 3.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZhongTongGuoMai Communication Co stock overvalued right now?
Based on GuruFocus' analysis, ZhongTongGuoMai Communication Co (SHSE:603559) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥4.06, compared to a current price of ¥9.07 — trading 123.4% above its estimated fair value. The current Return-on-Tangible-Equity is 3.54% and 63.8% below the Software industry median of 9.79. ZhongTongGuoMai Communication Co's overall GF Score™ is 49/100 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 ZhongTongGuoMai Communication Co (SHSE:603559), the current Return-on-Tangible-Equity is 3.54% 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 ZhongTongGuoMai Communication Co (SHSE:603559) Overvalued in 2026?

Based on GuruFocus' analysis, ZhongTongGuoMai Communication Co stock appears to be overvalued. The current stock price of ¥9.07 is trading 123.4% above its estimated GF Value™ of ¥4.06. GuruFocus considers ZhongTongGuoMai Communication Co to be Significantly Overvalued.

Key valuation signals for SHSE:603559:

  • Return-on-Tangible-Equity: 3.54%
  • GF Value™: ¥4.06 vs. price of ¥9.07 (123.4% above fair value)
  • GF Score™: 49/100 with 1 warning sign
  • Industry Position: 63.8% below the Software median (#1978 of 2485)

No single metric tells the full story. See the SHSE:603559 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


ZhongTongGuoMai Communication Co Business Description

Address No. 6399, Nanhu Road, Jilin Province, Changchun, CHN, 130012
ZhongTongGuoMai Communication Co Ltd is the communication technology service provider in China. The company undertakes the communication network engineering consulting, surveying and design and construction activities; and communication network system operation and maintenance services. The communication technology services provided by the company mainly include two types of communication network engineering services and communication network maintenance services. The network engineering service refers to the construction of communication lines and communication pipes at the network level such as the core network, the transmission network and the access network.
49GF Score

Get the complete analysis for SHSE:603559

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥9.07
Price
¥4.06
GF Value